NRMLA, with input from the Risk and Compliance Committee, submitted a letter to FHA that offers suggestions on improving the agency’s Quality Assurance Process.
FHA published a notice in the Federal Register on July 9 seeking input from the lending community, consumer groups and the general public. Comments were due on September 9.
NRMLA requested that any changes adopted through the Solicitation should first be published as a proposed rule, so that the industry has an opportunity to comment. The association also pointed out that HUD guidance can be hard to discern, can be inconsistent with what is published in handbooks and regulations, and is sometimes interpreted or applied differently among the four Home Ownership Centers.
“Thus, before FHA makes any changes in the QAP, it should first address what some perceive to be an area for improvement in FHA review of loan endorsements,” says the letter.