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FHA Tightens Standards for Mortgage Brokers

Realtor.org reports today that the FHA is cracking down on Mortgage Brokers individually, not just the companies.

"The Federal Housing Administration is tightening its review of mortgage professionals that are allowed to originate loans.

The Department of Housing and Urban Development requires brokers who originate FHA loans to obtain approval through the agency. People convicted of making fraudulent loans will be barred from the program. Previously, companies were penalized, but individual employees were not.

Richard L. Tracy Jr., a board member of the Connecticut Society of Mortgage Brokers and an FHA-approved lender, says the changes 'will go a long way toward getting out the marginal players.'”

Sherry Armstrong, Realtor
www.sherryarmstrong.com

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