Center for American Progress

STATEMENT: CAP’s Housing Policy Director Applauds FHA Changes to Loan-Level Certification Form
Press Statement

Washington, D.C. — Today, the Federal Housing Administration, or FHA, announced changes to its loan-level certification form to provide additional clarification to the mortgage industry while maintaining the ability to hold lenders accountable for serious underwriting errors. Some mortgage lenders asserted that the previous language was unclear and potentially held them liable for a slew of small underwriting errors in the case of a borrower default, while other lenders said that this lack of clarity may prevent them from originating FHA-insured loans in the future. Sarah Edelman, Director of Housing Policy at the Center for American Progress, issued the following statement:

The FHA appears to have struck the right balance with the changes it has made to the loan-level certification. The new language will help provide clarity to the mortgage industry without reducing the FHA’s ability to hold lenders accountable for irresponsible underwriting practices. The FHA is a critical source of mortgage credit for America’s families, particularly first-time homebuyers and buyers of color, and this announcement should pave the way for more lender participation in the FHA insurance program.

Related resources:

  • July 2015 comment letter to the U.S. Department of Housing and Urban Development from CAP, the Consumer Federation of America, and the National Consumer Law Center, or NCLC (via NCLC)
  • October 2015 letter to the U.S. Department of Housing and Urban Development from CAP and NCLC (via NCLC)

For more information or to speak with an expert, contact Allison Preiss at or 202.478.6331.