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Lender Services

FHA Re-underwriting

At Stewart Lender Services, we have the resources and experience to help FHA lenders like you solidify your endorsement process and quality oversight programs. Our expert staff can help protect you from liability under the False Claims Act (FCA) liability with thorough due diligence, re-underwriting loan reviews, quality assurance assessments, and our extensive experience with FHA guidelines and program requirements.

While the Department of Housing and Urban Development (HUD) grants the Federal Housing Administration (FHA) lenders who participate in the direct endorsement program the authority to certify mortgages as eligible for FHA insurance, it does not review loan files prior to closing. As a result, this reliance on the direct endorser’s certification of loan compliance can create potential FCA issues, and even the smallest errors can reap costly consequences. In extracting damages from FHA lenders, HUD has alleged failures such as:

  • Lack of a gift letter
  • Inaccurate employment verification
  • No verification of sources of deposits and earnest money
  • Insufficient examination of loan file irregularities

Our re-underwriting services include:

  • Assessing the stability and likelihood of the borrower’s continuance of income
  • Documenting the borrower’s ability and willingness to repay the loan
  • Documenting acceptable compensating factors when exceptions are present
  • Verifying that all documents required for HUD insurance are present
  • Confirming that all loans approved by automated underwriting definition systems meet documentation requirements

Now, more than ever, it is important to ensure that loans are properly underwritten and adhere to HUD’s strict standards before they are submitted. With our re-underwriting services, you’ll enjoy the confidence and peace of mind that your company’s pre-endorsement or pre-claim conveyance meet applicable guidelines so you can stay protected from FCA liability.

All services and products referenced herein are offered by or through a member of the Stewart family of companies, as applicable, and may vary by state or local jurisdiction. The statements herein are not a representation that services or products are being offered or performed by Stewart Lender Services or any particular Stewart company. Where applicable, all services and products are performed and produced by an entity fully licensed to do so.