What happens if a lender fails to complete the annual recertification of its FHA approval?

To retain its FHA approval, a lender must, unless otherwise noted, complete FHA’s recertification process on an annual basis. Each lender must submit its recertification package within 90 days after the lender’s fiscal year end.

A lender may be referred to the Mortgagee Review Board (MRB) for failing to timely and satisfactorily complete the annual recertification process.

For additional information see Handbook 4000.1 I.A.8.a & g available at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh.