FHA head, Ed Golding said:
In this final loan-level certification, FHA is clearly identifying [that] lenders will be held accountable for only those mistakes that would have altered the decision to approve the loan. This important move makes it very clear that minor mistakes that do not affect the decision to approve a loan are not the focus of our compliance efforts.
The revised certifications also clarify that lenders are certifying only to the best of their knowledge and do not hold lenders responsible for third-party errors they would have no reason to be aware of. As ABA also urged, the FHA removed references to its pre-endorsement review requirement.
View the certifications.
Read ABA’s comment letter.