FHA

doug · Joined: 07 Jul 2006 Posts: 7 1.92 Dollars($)

I read, about a month ago, that audited financials were not going to be required any more for brokers who want to offer FHA loans. Have you heard and read anything regarding that?

chrisburns · Posted: Thu Feb 14, 2008 2:23 pm Post subject:

Yes they have been debating this FHA reform bill for a long time. IT has not passed and likely isn't go to in the near future.

It would replace the need for audited financials with a $25K bond. Much Much easier to obtain.

Guest 0.10 Dollars($)

Thanks Chris, yes the $25 K would make life much easier. I was told by someone else that it is not likely to ever pass.

chrisburns · Posted: Thu Feb 14, 2008 2:52 pm Post subject:

I wouldn't say that. I think that FHA modernization is becoming more and more relevant as time passes.

With the recent stimulus package they have increased the FHA loan limit in high cost areas to $730K on a temporary basis.

Issueing a bond in place of audited financials would really open up FHA to a much wider base of potential clients. Right now all of the broker that are not FHA approved are having to work with the few lenders brave enought to offer a non FHA approved consulting program. They don't allow you to make any YSP however you can charge up to 2 points upfront.

If you don't go that route you have to become a W-2 employee of an approved FHA lender.

The latter option worked best for us until getting the EXTREMELY expensive mini-eagle designation.

I'm hoping they will pass the FHA reform bill within the next six months.

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