The Federal Housing Administration published Frequently Asked Questions in response to a final rule that updates branch office registration requirements. Details were announced in FHA Info #2024-2.
Why it matters: The final rule, published on February 2, makes it optional for lenders and mortgagees to register branch offices where they originate FHA Title I or Title II loans.
- The most frequent question asked was whether the new rule impacts lender approval recertifications for lenders and mortgagees whose fiscal year ended on December 31, 2023.
- FHA says the final rule — which becomes effective on March 4, 2024 — is NOT applicable for those institutions whose fiscal year ended on December 31, 2023, and are required to recertify by March 31, 2024.
- Recertification fees for those lenders will be calculated based on the number of registered branches as of the last business day of their fiscal year-end certification period.
FHA will also soon publish a Mortgagee Letter that provides implementation guidance for the provisions in the rule.
