Date: Mon, 29 Dec 2003
From: "National Mortgage News"

The Department of Housing and Urban Development is sticking to its agenda of making Federal Housing Administration lenders more accountable for the performance of the loans they originate. On Christmas Eve, HUD sent to the Office of Management and Budget a final rule that would make lenders accountable for the quality of the appraisals they use in approving FHA single-family loans. The OMB reviews and clears all regulations before they can be published in the Federal Register . Lender groups maintain that HUD does not have the authority to hold lenders liable for the actions of appraisers and other third-party contractors. Meanwhile, HUD's regulatory agenda lists several proposals the agency plans to issue in the next six months that address accountability and compliance problems. These include a proposal that would limit the ability of FHA lenders to evade Mortgagee Review Board sanctions by selling their addresses, names, and assets to another FHA-approved lender. Other proposals would: set new restrictions on who can be an owner or officer of an FHA-approved lending company; spell out the responsibilities and duties of FHA-approved loan correspondents and sponsors; and establish a loan officer registry to ensure that loan officers are employed by only one lender.

http://www.nationalmortgagenews.com/premium/news.htm#1

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ACA #1454