Changes in Requirements for Late Endorsement of FHA Loans Have Increased Risk of Claims, OIG Says

摘要

Relaxation of the requirements for late endorsement of FHA-insured home loans has substantially increased the risk of defaults and insurance claims, according to a HUD Office of Inspector General (OIG) audit report. (Audit Report No. 2006-SE-0002, August 16, 2006) Under the direct endorsement program, lenders can underwrite and close FHA loans without prior HUD review or approval and then submit the loans for endorsement for mortgage insurance.