Financial Audit Requirements For FHA Lenders

Mortgage Broker Audit requirement

The Federal Housing Authority FHA credit policy requires mortgage lenders to submit an audited statement and meet the HUD compliance requirements. Maintaining the required documentation and fulfilling the audit requirements allows you to continue offering lending services.

Audit requirements for FHA lender’s approval

  1. Submit audited financial statements for the previous fiscal year’s end.
  2. The submitted financial statement document must cover the current operating month for FHA lenders operating for less than a year.
  3. Income statements and cash flow aren’t required.
  4. Liquid assets should not be less than 20% of the required adjusted Net Worth.
  5. Non-supervised institutions may derive at least 50% of their activities from real estate mortgages, consumer installments, or a similar credit advance.
  6. Must maintain adequate adjusted net worth per HUD requirements.
  7. If the financial statement audit end date is more than six months, you must submit an unaudited financial statement signed by a corporate officer.

Audit requirements for FHA lender’s recertification

  1. Submit a recertification application through the lender electronic assessment portal (LEAP).
  2. Submit recertification application within 90 days of fiscal year-end (Dec. 31st – March 31st).
  3. Submit a financial statement.
  4. Submit online certification.
  5. Pay recertification fees.

Check out the FHA audit checklist to complete your FHA approval.


Need Help?

Contact MetwallyCPA to conduct your financial statement audits or reviews for FHA license renewal.


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