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WBK Industry News - Federal Regulatory Developments

FHA Revises Annual Lender Certifications

On October 25, 2019, FHA published revised annual lender certifications in the Federal Register.  FHA will implement the revised certifications on January 1, 2020.

The revised certifications include the following: (i) the person making the certifications is a corporate officer of the mortgagee authorized to execute the certifications on behalf of the mortgagee; (ii) the mortgagee or any corporate officer was not subject to a suspension, debarment, or under a limited denial of participation under the certification period; (iii) the mortgagee or any corporate officer was not, with a limited exception, refused or had revoked any necessary licenses for normal mortgage loan operations; (iv) during the certification period, the mortgagee was not, with a limited exception, sanctioned by any states in which the mortgagee will originate loans; and (v) the preceding statements are materially correct to the best of the knowledge of the person making the certifications.

The revised certifications omit a number of certifications required in the present annual certification statement.  For example, the revised certifications no longer require the person making the certifications to certify that they know or should know that the mortgagee conforms to all HUD regulations and requirements necessary to FHA approval.