LI Application and Approval
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LI Application and Approval |
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| The FHA Connection Application Coordinator submits an (automated) application and acknowledgment for participation in the LI program on behalf of the lending institution. This process has two basic parts: | |||
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Lender Insurance Contact Information | ||
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Acknowledgment of Terms and Conditions for Lender Insurance | ||
| The FHA Connection Application Coordinator uses the Lender Insurance Acknowledgment link on the FHA Connection ID Administration Request page or Lender Functions menu to display the Lender Insurance Contact Information page. The LI lender's primary and/or secondary contact information is entered. If there are no errors, the Acknowledgment of Terms and Conditions for LI page is displayed which serves as both an application for the LI program and an acknowledgment of its terms and conditions. | |||
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The lending institution is checked in HUD's systems to determine if it qualifies for the LI program (i.e., unconditional DE status for the past two years and acceptable default/claim rate). | ||
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If the lender qualifies, the lender's approved LI status is recorded in HUD's origination system. (If the lender does not qualify, an error occurs and the lender is notified.) | ||
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Approval for the LI program is effective for one year. At the end of a year, the lender is automatically checked against HUD's systems to ensure its default/claim rate is still acceptable and it meets all other approval criteria. If so, the lender's LI approval is renewed for another year. | ||
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