WASHINGTON (10/11/10)--The U.S. Department of Housing and Urban Development (HUD) keeps working on improvements to the risk management activities of its Federal Housing Administration (FHA) and recently proposed changes to update the Lender Insurance process. Most FHA-insured mortgages are endorsed for the insurance process and the proposed rule, most significantly, would provide new guidance on requirements for mortgagee indemnification to HUD of insurance claims in the case of fraud, misrepresentation, or noncompliance with applicable loan origination requirements. The plan also clarifies that, in order to retain Lender Insurance authority, mortgagees must continually maintain the acceptable claim and default rate required for the initial delegation of eligibility. Comments are due Dec. 7. For more use the resource link.