"In the notice, HUD said Equity Prime is losing its ability to independently approve FHA loans in HUD office jurisdictions Atlanta, Columbia, S.C., Dallas and Houston, while RAC, a Florida-based lender, is losing the ability to do so in Tampa. The terminations, which Equity Prime's CEO Eddy Perez says are actually a suspension, were effective Dec. 24, 2025, according to the Register. Perez told HousingWire that he was notified the day prior."
"The company may seek reinstatement of its direct endorsement (DE) authority after six months by submitting an independent review of its loan performance along with a corrective action plan. Direct endorsement authority allows lenders to underwrite single-family mortgages and submit them to the FHA for insurance. HUD may revoke that authority if a lender's default and claim rates in a market exceed 200% of the regional average and surpass the national average."
HUD revoked Federal Housing Administration direct-endorsement authority for Equity Prime Mortgage in Atlanta, Columbia, S.C., Dallas and Houston and for Residential Acceptance Corporation in Tampa, effective Dec. 24, 2025. The action falls under HUD's Credit Watch Termination Initiative, which monitors lender performance and revokes DE authority when default and claim rates exceed defined regional and national thresholds. Equity Prime attributed elevated defaults to loans originated during rapid market changes, including rising inflation, higher property taxes and insurance costs, and stress on first-time homebuyers. The company may seek reinstatement after six months by submitting an independent review and a corrective action plan. Equity Prime previously lost DE authority in four additional markets in September 2025.
Read at www.housingwire.com
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