FHA Publishes Mortgagee Letter 2021-25, Federal Housing Administration’s Financial Requirements for Mortgagee Eligibility – Update to Unacceptable Assets

FHA recently published Mortgagee Letter (ML) 2021-25, Federal Housing Administration’s Financial Requirements for Mortgagee Eligibility – Update to Unacceptable Assets.  This letter, which addresses the June 25, 2021, changes to Chapter 7 of the OIG General Audit Guidance Handbook 2000.04, changes the impact of FHA-approved mortgagees and entities applying for FHA approval.

Chapter 7 of the OIG General Audit Guide has been changed to include an expanded list of unacceptable assets that mortgagees cannot include in their computation of adjusted net worth. This guidance is effective immediately for all entities applying for FHA approval. FHA-approved Mortgagees must be in compliance by December 31, 2021.