FHA’s Lender Insurance Program (LI) enables high-performing lenders to insure FHA forward mortgage loans without a pre-endorsement review by HUD.
This expedited procedure is part of HUD’s overall effort to make the processing of FHA loans easier and more cost-efficient so that lenders will be better able to offer FHA insured loans and expand the availability of affordable financing for potential homebuyers.
With the LI program, lenders self-insure FHA loans and submit only those case binders (paper or electronic) when requested for review by HUD. HUD requests approximately 6% of insured loans for review. This new, re-designed process has reduced processing time by one third and decreased direct insuring expense by as much as 25 percent. The need to submit case binders to satisfy Notices of Return (NORs) has been dramatically reduced under LI.
LI lenders are strongly encouraged to submit electronic case binders. The Electronic Case Binder Developer’s Guide provides information for lenders’ software development and maintenance staff regarding the submission of electronic case binders. Lenders can also choose to submit electronic case binders using an e-document vendor.
FREE – FHA Monthly Update
- Recent changes
- Proposed / upcoming changes
- Common Underwriting errors
Advanced FHA Training
This interactive “Instructor-led” training course focuses on the critical functions of the loan originators and underwriters
203k & Streamlined (k)
- Guidelines & Requirements
- Loan Calculation & close-out
1-on-1 or Group DE Training
- On-site at your location or at ours
- 90 day support with our trainer