How will a Mortgagee be notified of a proposed Credit Watch termination?

FHA will issue a Proposed Credit Watch Termination Notice to the Mortgagee prior to terminating their approval. The Mortgagee may appeal the proposed termination by submitting a written request for an informal conference with the Deputy Assistant Secretary (DAS) for Single Family Housing or its designee within 30 Days of receipt of the Notice. 
 
If a Mortgagee does not request an informal conference within 30 Days of receiving the Notice, the Mortgagee has waived its appeal and its authority will be terminated 60 Days from the date of the Proposed Credit Watch Termination Notice without further notice from HUD.
 
For additional information see Handbook 4000.1 V.E.3.a.iii(C) at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
 
Additional information is available using the Credit Watch Termination link in the Oversight & Sanctions section at: https://www.hud.gov/program_offices/housing/sfh/lender/

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-03478