The Federal Housing Administration finalized a rule streamlining its financial statement reporting requirements for federally supervised lenders and mortgagees with less than $500 million in assets. The agency previously required supervised lenders and mortgagees to submit annual audited financial statements in order to receive FHA approval and recertification.
The FHA will now allow smaller lenders and mortgagees to submit the unaudited financial regulatory reports that bankers submit to their supervisory agencies at the end of the fiscal year.
Under the rule, small lenders would have to submit audited statements only if the Department of Housing and Urban Development determines that the lender represents a heightened risk to the FHA's insurance fund. ABA had advocated for this change to reduce the regulatory burden on smaller banks.
Read the final rule.