Supervised, Nonsupervised, and Investing Mortgagees must meet the adjusted net worth and liquidity requirements at all times.
If at any time a mortgagee’s adjusted net worth or liquidity falls below the required minimum, the mortgagee must submit a Notice of Material Event to FHA using the Lender Electronic Assessment Portal (LEAP) within 30 business days of the deficiency. The mortgagee must submit a corrective action plan that outlines the steps taken to mitigate the deficiency and includes relevant information, such as contributions and efforts made to obtain additional capital.
For more information about submitting a Notice of Material Event using LEAP refer to the LEAP User Manual located at: http://www.hud.gov/lenders under the LEAP Information link in the Approvals & Renewals section.
Handbook 4000.1 I.A.3.c.vii; I.A.7.f is available at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh.