The Department of Housing and Urban Development released new submission requirements for lenders sponsoring third party originators last week.
For transactions originated by an FHA-approved loan correspondent, mortgagees should follow the current process through December 31, 2010.
As of January 1, 2011, the FHA-approved loan correspondent program will no longer be available, and mortgagees must comply with new systems requirements to support collection of sponsored originator data. Mortgagees are reminded that only FHA-approved entities will have direct access to FHA Connection.
For more information, see Mortgagee Letter 2010-33.