The FHA Mortgage Review Board sent a message to FHA lenders across the nation. “If you want to originate FHA loans, then do not commit mortgage fraud.” The government review board yanked its approval stamp from 905 national FHA mortgage lenders for 1 year. An additional 147 FHA lenders were said to have failed to timely meet requirements for annual FHA recertification, but are now in compliance.
The HUD Reform Act of 1989 established the Mortgage Review Board with the goal of to monitoring approved FHA lenders for violations of the agency’s program requirements. The question is — Will the lenders survive for a year without the ability to originate FHA home mortgage loans? Read the original mortgage news post online > FHA Mortgage Lenders Lose Certification.