What actions can be taken against a lender who fails to comply with the requirements of ML 2014-10?

Lenders are responsible for ensuring their branches, employees and agents comply with all FHA requirements. Failure to follow HUD/FHA requirements as outlined in Mortgagee Letter 2014-10 may result in sanctions, including civil money penalties or administrative action against any person, party, company, firm, partnership or business, including non-FHA-approved institutions and individuals.

For more information see Mortgagee Letter 2014-10 available at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee

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-03528