Brokers and lenders that have been doing FHA for years have seen many changes over the recent years, and now FHA is poised to create mini-chaos in the marketplace, as it implements major changes as to the way it approves lenders. Brokers and smaller shops will now be approved by the INVESTOR, not by FHA.
This will force many mortgage originators, brokers and small-mid lenders OUT of direct FHA lending approval, and instead to larger wholesale lending operations who can comply with the new guidelines.
But the rules have changed for them as well…THEY are now responsible for the approval and quality control of all these originations – which makes them very nervous. The good news is that scores of lenders have now requested this approved certification as required training for their brokers.
The Certified FHA Processor - (CFP)
is designed to give a loan processor a basic understanding of the FHA loan program and principles, mortgage calculations, FHA guidelines and loan file disclosure requirements, borrower income and credit analysis, appraisal and third party documentation, processing and pre-underwriting principles, credit and FHA systems guidelines, and teach best standards of practice relative to ethical lending and fraud prevention.
Training includes case studies with complete file processing examples and testing to insure student comprehension of the concepts taught. The total training time should be seven hours.
Certification access allows for up to 3 months to complete the training modules, and once you have passed the exams your certification will be valid for one year.Included Training Modules:
How To Receive Your Certification
- Introduction To FHA - 2 hours
Designed to teach the origins and basics of FHA - including the history and structure of FHA; types of lender approvals and requirements; lending regions; various FHA programs and loan types; basic borrower and property eligibility requirements; and new construction guidelines. It also focuses on maximum mortgage, UFMIP and mortgage insurance calculations.
- FHA Borrower Credit Analysis - 2 hours
This training module focuses on qualifying the borrower, credit and asset analysis. It includes calculating ratios and income, reviewing liabilities and credit, a sample case study, and discusses acceptable sources of funds needed for the transaction.
- ABC's Of FHA Processing - 2 hours
This training module looks at the complete role of the FHA processor. Discussions include customer and originator communication, loan file compliance, order case numbers and thirdparty reports, automated and manual underwriting, and preparing for closing. Features a complete detailed FHA loan processing Case Study.
- Ethical And Responsible Origination Practices - 1 hour
This training module looks at proper FHA loan origination practices and ethical standards. Included is a study of "responsible behavior" for loan originators and processors, including fraud prevention and detection.
- Exams will be given after EACH module, and also for FINAL CERTIFICATION
- Individuals will be required to pass the initial online test of 20-30 questions (module), and 100 questions (final) with a score of at least 75%. No further testing will then be required.
- Initial certification will be given once education has been completed, and a passing score has been recorded
- Re-certification requires attendance of 2-hours of continuing education, which can be completed on-line
- Certificates will be provided to all candidates meeting these qualifications