Lenders Urged to Review MICs Before Submission to FHA
March 28, 2014
Approved lenders should review thoroughly all information before submitting their mortgage insurance certificates (MIC) to FHA because there have been too many mistakes over the past year, the agency warned. In the latest issue of Lender Insight, the FHA said lender requests to correct information on MICs have been more frequent than expected. Of the MIC corrections the FHA has reviewed, 81.5 percent stemmed from the agency’s Lender Insurance program. An MIC is a document issued by the Department of Housing and Urban Development as proof that FHA has insured a mortgage loan, and that a contract of mortgage insurance exists between the lender and HUD/FHA that incorporates agency regulations. A loan is considered as having no FHA insurance if it does not receive an MIC, regardless of how it is closed. The FHA made clear that it is the lender’s responsibility to ensure that information ...