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MEETING TO REVIEW NEW RULES FOR FHA HOME IMPROVEMENT LOANS

 MEETING TO REVIEW NEW RULES FOR FHA HOME IMPROVEMENT LOANS
 SAN FRANCISCO, Dec. 18 /PRNewswire/ -- Recent changes in HUD regulations governing FHA Title I Home Improvement Loans offer significant new opportunities and protections for lenders, promising to end the program's years of controversy.
 Most important of these is the elimination of the discredited loan broker system and increased performance monitoring of remodeling contractors. These independent "brokers" and "dealers" have been widely criticized in the past as a chief source of fraud and non- performing loans.
 These and other sweeping changes in Title I rules will be the subject of a four day annual meeting sponsored by the Title One Home Improvement Lenders Association (TOHILA), Feb. 1-4 at San Francisco's Ritz-Carlton Hotel.
 "The meeting will focus on ways lenders can take advantage of the opportunities and safegaurds created by the new regs," said Peter Bell, TOHILA executive director. The new rules encourage lenders to establish correspondent networks to help build their loan origination volume. Correspondents are sponsored by lenders, but directly accountable to HUD.
 Under the old system, loan brokers solicited applications for financing remodeling projects. They would then "sell" the loan applications to lenders and collect fees, sometimes from both parties.
 The new regulations establish a correspondent classification. Correspondents can be depository institutions, mortgage bankers or other financial organizations; but must be sponsored by an approved Title I lender, maintain a minimum net worth and meet other HUD requirements.
 Correspondents must now close loans in their own name, although they can then transfer them to a sponsor or into the growing secondary market.
 "Establishing correspondent networks is the key to future growth," said Bell. "But other changes in underwriting standards and borrower qualifications should also be fully understood by lenders originating Title I loans.
 "Our goal is to help lenders improve both the quality and volume of their Title I loan portfolios."
 The seminar will also focus on business management issues such as marketing, quality control, property appraisals and packaging loans for the secondary market.
 "It's a chance for current Title I lenders to get up to speed on the new regulations and for potential lenders to take a fresh look at the profitable opportunities offered by these loans."
 Registration fees for the meeting, which is expected to draw lenders, corespondents and secondary market specialists from across the country, are $445 for TOHILA members and $550 for nonmembers. For registration or further information, contact TOHILA at 202-328-9171.
 -0- 12/18/91
 /CONTACT: Kevin or Simmie Collins of Collins Creative, 415-665-2933, for TOHILA/ CO: Title One Home Improvement Lenders Association ST: California IN: SU:


DG -- SF004 -- 3566 12/18/91 16:30 EST
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Date:Dec 18, 1991
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