It seems recently FHA has been running a little low on cash. Not surprisingly FHA delinquencies have been ratcheting up due to quite a big surge in demand from 2007-2009 YTD. AS delinquencies rise, the cash needed for the FHA slush fund gets lower.
If an effort to stem the tide of defaults FHA has recently announced it will require income documentation from FHA streamline clients as well as Lenders will be required to maintain audited net worth abouve $1 million, up from just $250,000. However, they have also recently announced Mortgage Brokers will no longer be required to register with FHA or carry any type of net worth. The liability it seems will fall squarly on the correspondent lender.
The moral? get your streamlines in now before it tightens up again...I mean what are you waiting for anyway - rate are ridiculously low.