"In the notice, HUD said Equity Prime is losing its ability to independently approve FHA loans in New York, Jacksonville, Orlando and Louisville, Kentucky, although loans approved before Aug. 22 remain eligible for endorsement and are not affected. Moving forward, EPM can't approve new FHA loans in these areas unless another FHA-approved lender handles the process. The company may reapply for direct endorsement (DE) authority after six months if it submits an independent analysis of its loan performance and a corrective action plan."
"Direct endorsement authority lets lenders underwrite single-family mortgages themselves and submit them to the FHA for insurance approval. HUD can terminate that authority if a lender's default and claim rates in a given market exceed 200% of the regional average and are also higher than the national average. A spokesperson for EPM told HousingWire that the company did not have a comment at this time."
HUD removed Equity Prime Mortgage's ability to independently approve FHA loans in New York, Jacksonville, Orlando and Louisville, Kentucky. Loans approved before Aug. 22 remain eligible for endorsement and are not affected. EPM cannot approve new FHA loans in those markets unless another FHA-approved lender handles the approval. The company may reapply for direct endorsement authority after six months if it submits an independent analysis of loan performance and a corrective action plan. Direct endorsement authority permits lenders to underwrite single-family mortgages and submit them to the FHA for insurance approval. HUD can terminate DE authority when a lender's default and claim rates in a market exceed 200% of the regional average and exceed the national average. EPM did not comment.
Read at www.housingwire.com
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