Interthinx Offers FHA Allowable Fees Analysis

Posted by Orb Staff on February 25, 2009 No Comments
Categories : Residential Mortgage

Interthinx now offers a fully automated analysis within its regulatory compliance solution to provide protection against errors in originating Federal Housing Administration (FHA) loans.

The analysis – called PredProtect – automatically warns users when it identifies tax-service fees and/or loan-origination fees exceeding 1% of the loan amount on the HUD-1 settlement statement, in accordance with HUD Mortgagee Letter ML 2006-04. The system can also alert users to violations of the "Tiered Pricing Rule" found in ML 94-16, which limits variations in customary lender fees to no more than 2% in a geographic area.

"Bottom line, FHA lending now accounts for one-third of loan applications today, and many production teams are inundated with applications and challenged with finding experienced FHA underwriters, many of whom retired years ago," says Stacey Louie, senior vice president of product development for Interthinx. "The vast majority of lenders need all the support they can get with their FHA lending, and the FHA Allowable Fees Analysis in PredProtect not only streamlines processes, but also helps lenders maintain compliance for insurable loans and increase profitability."

SOURCE: Interthinx

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