The Department of Housing and Urban Development rejected a number of industry recommendations to ease the impact of new lender indemnification regulations. The final rule imposes indemnification provisions on all FHA lenders with Lender Insurance authority and revises the methods determining an acceptable claim and default rate. It also amends the two-year performance requirements for considering mortgagees for Lender Insurance (LI) authority in connection with a merger, acquisition or reorganization. The primary change under the new rule is that all direct endorsement lenders with LI authority...