Credit Watch Termination Initiative; Terminations of Direct Endorsement (DE) Approval
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Summary
AI summary — grounded in the notice text
This HUD notice lists mortgagees that have had their Direct Endorsement (DE) approval terminated under the FHA Credit Watch Termination Initiative due to high default and claim rates on FHA-insured loans. It explains the cause, effect, and reinstatement process for terminated mortgagees, including a required independent CPA analysis and corrective action plan submitted via LEAP. This is not directly a PHA program notice but informs housing staff about FHA lender oversight actions affecting mortgage origination in certain HUD field office jurisdictions.
Key Quotes
Verbatim from the notice
“This notice advises of the cause and effect of terminations of Direct Endorsement (DE) approval taken by HUD's Federal Housing Administration (FHA) against HUD-approved mortgagees”
Verbatim from the notice
“Termination of DE Approval precludes the mortgagee from underwriting FHA-insured single-family mortgages within the HUD field office jurisdiction(s) listed in this notice.”
Verbatim from the notice
“A terminated mortgagee may apply for reinstatement if their DE Approval in the affected area or areas has been terminated for at least six months”
Key Dates
- Published
- Sep 23, 2026