The Mortgagee is not required to submit audited financial statements or pay the recertification fee if the initial approval date of the Mortgagee is less than six months prior to the end of its fiscal year and the audited financial statements submitted for approval are for the period ending not more than six months prior to the end of its fiscal year.
However, the audited financial statements for the next recertification reporting period must cover the period from the date after the ending date of its audited financial statements submitted for approval to the end of its current fiscal year. The period covered by the renewal audit cannot exceed 18 months.
At the close of the first, full fiscal year following receipt of FHA approval, the Mortgagee must submit audited financial statements covering the period from the ending date of the financial statements used to obtain initial approval, and ending at the close of the Mortgagee’s most recent fiscal year. Mortgagees may not submit financial statements that cover a period of more than 18 months.
For additional information see Handbook 4000.1 I.A.8.a.iii. available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh