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]