Site offers FHA lender information

It’s not always easy finding regional lenders who handle Federal Housing Administration (FHA) mortgages. Harder yet is determining whether lenders have a good track record in working with clients.

FHA offers a website that Realtors® can use to find that information. The section is called Neighborhood Watch and it charts the information with national, state and local statistics, according to Dave McCarraher, senior account liaison with the FHA Office of Single Family Housing in Philadelphia. Simply hover over the tab “Early Warnings” and choose All Lenders or Single Lender. From there, site users can select loan originators, their state and/or county.

“I hear from Realtors® who are frustrated that they don’t know all the FHA lenders in their county,” he said. “This site allows them to see who’s doing business and compare their local, state and national performance. They’re able to see how many loans they’ve originated in each area as well and what the default rate is.”

FHA closely tracks lenders and in gathering this data, is able to request that banks do internal audits based on the statistical data. “This information allows FHA to see what lenders have higher risks, whether it’s a specific company, office or loan officer,” McCarraher added.

If a lender’s “Compare Ratio” is higher than 200, FHA flags the lender for problems and can freeze action at a specific branch or with a lender. Information is reviewed to see whether local economic situations may have had an impact on default rates in a specific county.

“For example, if a large employer closed in a county, the lender may see higher default rates in that county but may still be within normal levels at the state and national level,” he explained.

FHA’s helpline is available to guide Realtors® through the site. Call 800-Call-FHA for additional website details.