FHA Tones Down Reporting Requirements for Small Lenders

The ""Federal Housing Administration"":http://portal.hud.gov/hudportal/HUD?src=/federal_housing_administration (FHA) is easing back on reporting standards for smaller supervised lenders.

The agency announced in a recent ""mortgagee letter"":http://portal.hud.gov/hudportal/documents/huddoc?id=12-29ml.pdf it is eliminating a requirement for small supervised lenders to submit internal controls and compliance reports related to HUD programs. A ""previous letter"":http://portal.hud.gov/hudportal/documents/huddoc?id=11-25ml.pdf allowed small lenders to submit unaudited regulatory reports (as opposed to audited reports required from larger institutions) but did not eliminate the policy on compliance reports.

Non-supervised lenders and supervised lenders who consolidated assets meet or exceed the audited financial reporting threshold set by their federal regulatory agencies are not affected by these interim requirements.

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