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FHA Proposes Clarification
for Lenders to Increase
Program Participation
The Federal Housing Administration (FHA) The changes are meant to eliminate duplicative
announced on May 9 that it is proposing several information and present the information in a more
revisions to its lender certification requirements to user-friendly, easy-to-understand manner.
increase lender participation in its single-family In addition, FHA is revising its “defect taxonomy” to
mortgage insurance program and to provide lenders clarify the various loan defect categories and how the
and servicers greater certainty in how to satisfy the agency weighs the severity of each defect.
agency’s compliance requirements.
“A key focus of this administration and of my tenure
The agency said it believes the changes will at HUD has been to improve the clarity, certainty and
facilitate more competition in the market and result transparency of our regulations and requirements,”
in more financing choices for borrowers, particularly said HUD Secretary Ben Carson. “As part of this work,
entry-level home buyers. we have updated our defect taxonomy as well as
FHA is proposing revisions to its Addendum to the annual and loan-level certifications delivered in
Uniform Residential Loan Application (Form 92900- connection with FHA-insured loans.”
A) and to its annual lender certification form. NAHB MAY 2019
28 JUNE 2019 | GREATER SAN ANTONIO BUILDERS ASSOCIATION
