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a. General Requirements (03/14/2016)
i. Standard
(A) Recertification Process
To retain its FHA approval, a Mortgagee must, unless otherwise noted, complete FHA’s recertification process on an annual basis.
(B) Filing Deadline
Each Mortgagee must submit its recertification package within 90 Days after the Mortgagee’s fiscal year end.
ii. Required Documentation
The Mortgagee must submit its annual recertification package through LEAP. The Mortgagee must submit the following to recertify its FHA approval:
• online certification
• recertification fee
• financial data
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I. DOING BUSINESS WITH FHA A. FHA Lenders and Mortgagees (09/20/2021)
8. Annual Recertification
A Mortgagee that does not wish to retain its FHA approval must submit a Change Request for voluntary withdrawal of FHA approval.
iii. Exception for Recently Approved Mortgagees
(A) Standard
The Mortgagee is not required to submit audited financial statements or pay the recertification fee if the initial approval date of the Mortgagee is less than six months prior to the end of its fiscal year and the audited financial statements submitted for approval are for the period ending not more than six months prior to the end of its fiscal year.
However, the audited financial statements for the next recertification reporting period must cover the period from the date after the ending date of its audited financial statements submitted for approval to the end of its current fiscal year. The period covered by the renewal audit cannot exceed 18 months.
(B) Required Documentation
At the close of the first, full fiscal year following receipt of FHA approval, the Mortgagee must submit audited financial statements covering the period from the ending date of the financial statements used to obtain initial approval, and ending at the close of the Mortgagee’s most recent fiscal year. Mortgagees may not submit financial statements that cover a period of more than 18 months.