On September 23, 2011, the FHA issued Mortgagee Letter 2011-34 (ML 2011-34). The purpose of ML 2011-34 is to announce changes to the requirements for obtaining, maintaining and utilizing FHA lender approval. All requirements in ML 2011-34 are effective immediately. Except for certain editorial changes, this memorandum restates ML 2011-34. Those who wish to print ML 2011-34 may do so by clicking on the following web address:http://portal.hud.gov/hudportal/documents/huddoc?id=11-34ml.pdf. ML 2011-34 modifies or supersedes specific sections of HUD Handbook 4060.1 REV-2, “FHA Title II Mortgagee Approval Handbook,” and Handbook 4155.2, “Lenders Guide to Single Family Mortgage Insurance Process” as follows: Identifying Officers (modifies or supersedes ¶ 2-9.B of H.B. 4060.1). An applicant for FHA lender approval must list all of its Corporate Officers on Form HUD 92001-A who will be directly involved in managing, overseeing, or conducting the FHA business of the applicant. The applicant also must provide, for each individual listed, a credit report and a resume in accordance with ¶ 3-2.A.4 and ¶ 3-2.A.5 of Handbook 4060.1. The term “Corporate Officer” refers to a natural person who is an Owner, President, Vice President, Chief Operating Officer, Chief Financial Officer, Director, Corporate Secretary, Chief Executive Officer, Chairman of the Board, or Member or Manager of a limited liability company. This definition of Corporate Officer supersedes the definition of “Corporate Officer” contained in Mortgagee Letter 2010-38. Identifying Owners (modifies or supersedes ¶ 3-3 of H.B. 4060.1). An applicant for FHA lender approval must list in the Lender Approval Application Form 92001-A the appropriate owners for their business form, as follows: 1. Publically traded company or corporation: 10% or more ownership. 2. Non-publically traded company or corporation: 25% or more ownership. 3. Limited liability company (LLC): all members. 4. Partnerships: general partners.
