Lender Insurance Program

Information by State  Print version   Helpful Tools Lenders can subscribe to the Single Family Housing email list. You will get frequent updates to the HOC Reference Guide, FHA mortgage limit increase updates, training and event announcements, mortgagee letters and notices about your Single Family business. Want More Information? FHA Lender Insurance (LI) Training Powerpoint for Direct Endorsement Mortgagees. For detailed information on the LI program, please view the powerpoint presentation.

FHA's Lender Insurance Program (LI) enables high-performing lenders to insure FHA forward mortgage loans without a pre-endorsement review by HUD.

This expedited procedure is part of HUD's overall effort to make the processing of FHA loans easier and more cost-efficient so that lenders will be better able to offer FHA-insured loans and expand the availability of affordable financing for potential homebuyers.

With the LI program, lenders self insure FHA loans and submit only those case binders (paper or electronic) when requested for review by HUD. HUD requests approximately 6% of insured loans for review. This new, re-designed process has reduced processing time by one third and decreased direct insuring expense by as much as 25 percent. The need to submit case binders to satisfy Notices of Return (NORs) has been dramatically reduced under LI.

Lenders can find out more about the Lender Insurance Program by reading the Lender Insurance Guide. FHA Single Family has provided this guide to assist lenders, Homeownership Center (HOC) staff, and contractors who participate in the pre-insurance review, post endorsement technical review, and appraisal review processes, HUD Mortgagee Letter 2005-36 provides LI program guidance. Also see HUD's Press release of 9/26/05 that announces this program. The Electronic Case Binder Developer's Guide provides information for lenders' software development and maintenance staff regarding the submission of electronic case binders.