Federal Register #2026-13945

HUD Terminates Direct Endorsement Approval for Multiple Mortgagees Under Credit Watch Initiative

This notice from the Department of Housing and Urban Development (HUD), through its Federal Housing Administration (FHA), announces the termination of Direct Endorsement (DE) approval for several mortgagees under the FHA Credit Watch Termination Initiative. - Government Buyer: - Department of Housing and Urban Development (HUD) - Federal Housing Administration (FHA) - Affected Mortgagees: - Equity Prime Mortgage LLC - AmeriTrust Mortgage Corp - OCMBC Inc - Action Taken: - Termination of DE approval for the listed mortgagees - Applies to specific HUD field office jurisdictions - Mortgagees may not underwrite FHA-insured single-family mortgages in those areas - Mortgagees may continue servicing existing FHA-insured mortgages - Reinstatement Requirements: - Minimum six-month waiting period - Submission of an independent analysis by a qualified CPA - Corrective action plan addressing the causes of termination - No procurement of products or services is involved in this notice - No contract value, products, or services are being requested or awarded

Description

This notice from the Department of Housing and Urban Development (HUD) advises of the cause and effect of terminations of Direct Endorsement (DE) approval taken by HUD's Federal Housing Administration (FHA) against HUD-approved mortgagees through the FHA Credit Watch Termination Initiative. It includes a list of mortgagees that have had their DE Approval terminated due to poor performance of FHA-insured mortgage loans. The termination precludes the mortgagee from underwriting FHA-insured single-family mortgages within specified HUD field office jurisdictions. Mortgagees may apply for reinstatement after six months with required documentation and corrective action plans.

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