Topics In This Issue

• Federal Issues

• State Issues

• Courts

• Firm News

• Miscellany

• Mortgages

• Banking

• Consumer Finance

• Securities

• E-Financial Services

• Privacy/Data Security

• Criminal Enforcement Action

Excerpt from "Federal Issues"

HUD Issues Guidance on Completing FHA Annual Certification Process. On November 17, the Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2010-38, which, among other things, provides new guidance on completing the electronic Federal Housing Administration (FHA) Annual Certification process. Under the new guidance, mortgagees must complete their online Annual Certification prior to submitting their annual renewal fee and audited financial statements. Additionally, mortgagees must certify the accuracy of each of the statements found in their certification, including that the officers, partners, directors, managers, principals, supervisors, loan processors, loan underwriters, and loan originators of their institutions participating in FHA programs (i) are not subject to any unresolved findings or federal lawsuits resulting from an investigation, audit, or review by HUD or other federal, state, or local governmental agencies, or any other regulatory/oversight entities, (ii) are not in violation of the provisions of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act) or any applicable provision of state law, and (iii) are in compliance with state licensing requirements as well as all federally-mandated licensing or registration requirements, such as Nationwide Mortgage Licensing System and Registry (NMLSR) licensing/registration. If a mortgagee is unsure of whether a statement in its certification is accurate, then it should check the "Unable to Certify" box and provide an explanation for its inability to certify. FHA will review the explanation within 15 days of submission and indicate whether the mortgagee may complete the Annual Recertification process or must provide additional information. Any mortgagee who submits a false certification for any reason will be referred to the Mortgagee Review Board. The requirements of the Mortgagee Letter are effective immediately.

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