FHA grants 30-day extension on audits

As proposed in a Nov. 30, 2009, proposed rule (74 FR 62521), the U.S. Department of Housing & Urban Development (HUD) is seeking to eliminate Federal Housing Administration (FHA) approval for loan correspondents. Because this rule-making is still in process and a final rule has not yet been issued, FHA is extending the deadline for the submission of audited financial statements for loan correspondents seeking renewal of their FHA lender approval for 2010. For loan correspondents with a fiscal year end of Dec. 31, and that would ordinarily be required to renew their FHA approval by March 31, 2010, HUD is providing these lenders with an additional 30 days in which to submit their audited financial statements. These loan correspondents must continue to comply with existing requirements for the submission of their Annual Certifications and renewal fees, but will be given until April 30, 2010, to submit audited financial statements. Again, the deadline for the submission of the Annual Certification and renewal fee has not been changed. Loan correspondents that do not complete their renewal in accordance with the deadlines as specified above will no longer be FHA-approved as of the effective date of the final rule that follows the Nov. 30, 2009, proposed rule. If you have questions regarding this issue, please contact the FHA Resource Center by e-mail at [email protected], or by telephone at (800) 225-5342. Persons with hearing or speech impairments may access this number via TDD/TTY by calling (877) TDD-2HUD or (877) 833-2483. For more information, visit www.fha.gov.