Mortgage Net Branch and New HUD Rules

Are the people at HUD crazy?The title for this post should be “Are the people
at  HUD out of their fracking minds?”

HUD has extended the deadline for correspondent lenders (mortgage brokers) to provided their audited financials.

The big problem is that the extension period is useless. It’s a 30 day extension.

Since HUD has a proposed rule change in the works that will eliminate the approval for Loan Correspondents (Brokers) There is almost a 100% chance that  the financial audits will not be necessary.

Financial Audits for HUD are expensive and time consuming. They cost thousands of dollars and must be completed by a CPA.

Doesn’t any one at HUD know that it is tax season. Extending a deadline from March 31, 2010 to April 30, 2010 for work that a CPA has to complete will not help the Mortgage Broker  Companies one bit.

They are still going to have to pay to have the audits completed.

I can hear the call to the broker’s CPA – Hi Bob, Great news! HUD has extended the deadline to April 30 for our financials. Since they are preparing to eliminate the requirement you might not have to do them for me this year.

Bob laughs uncontrollably for 10 minutes and then tell the Broker that audits take 60 – 120 days to complete and since HUD as of today still says you have to have them you will have to pay for one even though HUD has said that the Audit will more than likely be unnecessary.

The NAMB brain trust was in DC last month. Did anyone at HUD bring up this extension idea with them for input? Does anyone at HUD know a CPA?  Does anyone at HUD know that it is tax season? Does anyone at HUD care?

Net Branch – HUD – FHA

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