The Federal Housing Administration last week issued a final rule to eliminate the Department of Housing and Urban Development’s requirement that a lender or mortgagee register all branch offices used to conduct FHA business. Under the new rule, lenders and mortgagees have the option to select which offices to register and maintain as branch offices with HUD. In addition, they can make fees applicable to each branch office registered with HUD rather than each branch office where they are authorized to originate Title I or Title II loans.
HUD first proposed the elimination of the requirement last year, saying that as the mortgage industry evolved, the agency has found it necessary to update its regulations. The changes are intended to reduce the administrative burden for existing lenders and mortgagees and eliminate barriers for entities interested in the FHA program, according to the agency. It expects the rule change to encourage more lenders and mortgagees to originate FHA-insured mortgages.
