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Important Notification

Dear Valued Partner,

FHA recently issued a Special Edition statement from FHA Commissioner, David H. Stevens, which announced extensions for certain effective dates related to Final Rule, "Federal Housing Administration: Continuation of FHA Reform-Strengthening Risk Management through Responsible FHA-Approved Lenders":

  • Temporary Extension of Deadline for Obtaining Unconditional Direct Endorsement Approval to July 1, 2011. The Final Rule changed Principal-Authorized Agent relationship originations to require that both lenders (Principal and Authorized Agent) possess unconditional direct endorsement approval. This requirement was to take effect January 1, 2011. FHA is extending the deadline for non-DE mortgagees to obtain unconditional direct endorsement approval to become Principals to July 1, 2011.

    Note: FHA mortgagees that do not obtain unconditional direct endorsement approval by July 1, 2011 can no longer act as Principals. However, they may continue to pursue unconditional approval through the test case process and may participate in originations as sponsored Originators.

  • Temporary and Narrow Extension of FHA-Approval for Loan Correspondents – Extended to March 31, 2011, with conditions. FHA Extends the approval of Loan Correspondents for the narrow purpose of permitting existing loans in their pipelines to close in their names. This extension only applies to loans for which, as of December 31, 2010:
  1. HUD has issued a firm commitment for insurance; or
  2. A DE underwriter has approved the borrower for such loan (i.e. the lender has received and accepted approval via TOTAL Scorecard or has manually underwritten the loan). This approval includes the DE underwriter review and approval of the appraisal.

    Note: Loans eligible for this waiver must close by March 31, 2011. All other pipeline loans that do not meet these criteria and have not closed prior to January 1, 2011, must close in the name of a FHA-approved Lender/Sponsoring Lender. FHA-approval of all Loan Correspondents for all other purposes will expire on December 31, 2010.

Sun West Mortgage will follow the deadlines as set forth in the FHA announcements, provided the specific guidelines outlined by FHA are met. For more details on the waivers, view the attachment at: http://www.hud.gov/offices/hsg/sfh/waivers122010.pdf

If you have any questions regarding the loans in your pipeline, please contact your Account Executive at (800) 453-7884.

Sincerely, 

Sun West Mortgage Company, Inc.
18303 Gridley Road
Cerritos, CA 90703

Equal Housing OpportunityThis information is provided as information for licensed wholesale brokers only and may not be copied or distributed to customers or potential customers. All loans subject to approval. Certain restrictions may apply. Program Rates, Prices, Guidelines, Fees, Costs, terms and Conditions are subject to change without notice.

Sun West Mortgage Company, Inc. (NMLS ID 3277) is licensed by the Department of Corporations as a California Finance Lender (License #603 0119) and is licensed by the Department of Real Estate (License #00793885). Refer to www.swmc.com to see where SWMC is a licensed lender. In all states, the principal licensed office of Sun West Mortgage Company, Inc. is 18303, Gridley Road in Cerritos, CA 90703; Phone: (800) 453-7884