Wells Fargo this week said it would reinstate certain credit overlays on its FHA business segment after expressing frustration over FHA’s republished proposal on loan-level certification. The lender, which ranked second on Inside FHA/VA Lending’s top FHA lenders for the first six months of 2015, reiterated the need for clearer rules in order to originate FHA-insured loans without fear of litigation or enforcement action. The bank said it is very disappointed with FHA’s revised certification proposal, which was republished in the Sept. 1 Federal Register. “In spite of much input to FHA from various consumer groups and lenders over a long period of time, [the] proposal falls short of what is needed,” said Mike Heid, head of Wells Fargo Home Lending. “As a result, this will now force us to add back certain credit overlays on the FHA single-family program.” Other FHA lenders could follow Wells Fargo’s lead as some did when ...