Federal Register #2026-19455

HUD Terminates FHA Direct Endorsement Approvals for Multiple Mortgagees Under Credit Watch Initiative

This notice concerns the termination of Direct Endorsement (DE) approvals for certain mortgagees by the Department of Housing and Urban Development (HUD), specifically the Federal Housing Administration (FHA) within the Office of Housing. - Government Buyer: - Department of Housing and Urban Development (HUD) - Federal Housing Administration (FHA) - Office of Housing - Affected Mortgagees (not OEMs or vendors): - Equity Prime Mortgage LLC - American Financial Network - Sun West Mortgage Co Inc - Action: - Termination of DE approvals under the FHA Credit Watch Termination Initiative - Based on high default and claim rates for FHA-insured mortgage loans - Regulatory Details: - Specifies the regulatory basis for termination - Outlines the effect on the mortgagees' ability to underwrite FHA-insured single-family mortgages in certain HUD field office jurisdictions - Provides the process for reinstatement, including the need for an independent CPA analysis and a corrective action plan - No procurement of products or services is involved; this is a regulatory action affecting mortgagee approvals.

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, specifically high default and claim rates. The termination precludes these mortgagees from underwriting FHA-insured single-family mortgages within specified HUD field office jurisdictions. The notice also outlines the process for mortgagees to apply for reinstatement after termination.

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