To retain its FHA approval, a Mortgagee (Lender) must, unless otherwise noted, complete FHA’s recertification process on an annual basis. Each Mortgagee must submit its recertification package within 90 Days after the Mortgagee’s fiscal year end. The Mortgagee must submit its annual recertification package through the Lender Electronic Assessment Portal (LEAP).
A Mortgagee may be referred to the Mortgagee Review Board (MRB) for failing to timely and satisfactorily complete the annual recertification process. The MRB is authorized to impose civil money penalties and take administrative action against any FHA-approved Mortgagee that does not comply with HUD/FHA requirements.
For additional information see:
Handbook 4000.1 I.A.8 and V.E.4 are available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
The Annual Recertification and Lender Electronic Assessment Portal (LEAP) Information pages can be viewed at: https://www.hud.gov/lenders under Approvals and Renewals.
HUD’s Mortgagee Review Board information can be viewed at: https://www.hud.gov/program_offices/housing/sfh/lender/ under Oversight & Sanctions.