As FHA becomes the product of choice for higher risk borrowers and companies look to add or expand their FHA program, we are seeing the resurfacing of the same old mistakes.

Mistake #10
Thinking that a conventional loan originator can take an FHA application with less than a full day of training, along with thinking all LO's can work effectively with first time homebuyers.

Mistake #9
Thinking that a conventional processor can handle FHA loans without a strong FHA underwriter on staff (or available at the sponsor) to offer support and continuous education.

Mistake #8
Not talking to your software provider about proper utlization of the system for FHA loans. Math, forms, extra AUS fields and many other areas need to be checked.

Mistake #7
Thinking FHA loans will replace all your subprime business that's s lost (or even half of it if you were 100% sub).

Mistake #6
Marketing and taking applications before training and procedures are completed.

BIG Mistake #5
Not developing a compensation plan and budget for the product as its own cost center.

BIG mistake #4
Brokers thinking they don't have risk. Think again...

BIG Mistake #3
Not implementing your quality control plan and getting files audited every month and failing to respond in writing to the QC report.

BIG Mistake #2
Not reviewing in detail ALL your contracts with your sponsors, agents and investors to identify ACTUAL buyback risks related to FHA EPD's, insuring issues and fraud. Know your REAL post closing risks whether you are sponsored or DE.

BIG Mistake #1
Slow and/or poor preparation when responding to HUD in any type of file or site audit. Preparation and a clear understanding of what HUD expects brokers and lenders to do to protect their business can save a company thousands of dollars in legal fees, fines and penalties. Don't wait! Be prepared!

You got it..we can help you with all of these!