The Department of Housing and Urban Development is seeking comment on proposed changes to its annual lender certifications, including a new streamlined form where shops must declare that none of their executives or employees have been penalized or sanctioned for violating federal or state law.
HUD rules prohibit lenders from employing anyone who was subject to a suspension, debarment, limited denial of participation, or other restrictions imposed by a regulatory agency for violation of federal or state laws.
HUD said it developed a streamlined annual lender certification in response to comments to its proposed changes. The extended comment period ended on June 30.
Some commenters noted that the annual certification statements would require overly broad attestations of regulatory and HUD Single Family Handbook provisions to maintain the mortgagee’s FHA approval. Compliance is tough enough as it is, they said. For more details, see the new edition of Inside FHA & VA Lending.
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