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FHA Net Worth Requirements Increase ProposedMortgagePress.comFHA, Federal Register, Net Worth
The March 30 Federal Register contained a notice of
proposed rulemaking from HUD that would increase the net worth
requirement for FHA loans to $75,000 and require that the
correspondent lender or mortgagee have liquid assets consisting of
cash or its equivalent in the amount of 20 percent of its net
worth.
The proposed provision states that:
A loan correspondent lender or mortgagee shall have a net worth
of not less than $75,000 in assets acceptable to the Secretary,
plus an additional $25,000 for each branch office authorized by the
Secretary, up to a maximum requirement of $250,000, except that a
multi-family mortgagee shall have a net worth of not less than
$250,000 in assets acceptable to the Secretary.
(4) Liquid assets. A loan correspondent lender or mortgagee
shall have liquid assets consisting of cash or its equivalent
acceptable to the Secretary in the amount of 20 percent of its net
worth, up to a maximum liquidity requirement of $100,000.
The comment period for the proposed rule is open through
Tuesday, May 30, 2000.
For additional information on the proposed rule and talking
points for comment letters, contact NAMB FHA/VA Committee Chair
Dorothy Desmond by phone at (847) 662-5363 or E-mail at
[email protected], or contact NAMB Government Affairs Manager Scott
Brasher by phone at (703) 610-0264 or by E-mail at
[email protected].
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