# 2026-19455: HUD Fires Bad Lenders: No More Shady FHA Loans for You

2026-19455, Credit Watch Termination Initiative; Terminations of Direct Endorsement (DE) Approval, is a Federal Register notice from Housing and Urban Development Department published 2026-09-23; PRIA reads it as touching household money (as of 2026-09-30).

- Canonical: https://policyrisk.com/federal-register/2026-19455
- As of: 2026-09-30
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Document number: 2026-19455
- Title: Credit Watch Termination Initiative; Terminations of Direct Endorsement (DE) Approval
- Type: Notice
- Agencies: Housing and Urban Development Department
- Citation: 91 FR 60389
- Published: 2026-09-23
- Effective: unknown
- Comments close: not stated
- Significant: no
- Touches household money: yes
- Regulation identifier numbers: none
- Last updated: 2026-09-30

## In one line

HUD Fires Bad Lenders: No More Shady FHA Loans for You

## Summary

HUD is ending the Direct Endorsement (DE) approval for certain mortgage lenders who didn’t perform well on FHA-insured loans. This means those lenders can no longer underwrite and submit loans for FHA insurance. The changes affect mortgagees with high default rates over the past two years and take effect immediately, helping protect borrowers and taxpayers.

## Abstract

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 through the FHA Credit Watch Termination Initiative. This notice includes a list of mortgagees that have had their DE Approval terminated.

## Effects PRIA read

- DE Approval Ends When Defaults Hit 200%: cost, high. HUD may terminate a mortgagee's Direct Endorsement (DE) approval if that mortgagee's default and claim rate for loans endorsed in the preceding 24 months exceeds 200 percent of the rate in the HUD field office area and also exceeds the national default and claim rate. If that threshold is met, the…
- Terminated Lenders Can't Underwrite FHA Loans: cost, low. When HUD terminates a mortgagee's DE Approval, that mortgagee is prohibited from underwriting and submitting FHA-insured single-family mortgages in the HUD field office jurisdiction(s) listed in the notice. Mortgagees authorized to hold or service FHA loans may continue those activities. Loans that…
- Reinstatement Requires 6 Months + CPA Report: cost, medium. A terminated mortgagee may apply for reinstatement only after the DE Approval in the affected area has been terminated for at least six months. The application (submitted through the Lender Electronic Assessment Portal, LEAP) must include an independent analysis by a Certified Public Accountant qua…
- Three Mortgagees Had DE Approval Terminated: cost, low. HUD has terminated DE Approval for specific mortgagees listed in the notice: Sun West Mortgage Co., Inc. (termination effective 2026-08-03) and Equity Prime Mortgage LLC and American Financial Network (terminations effective 2026-08-19). Those mortgagees may no longer underwrite FHA-insured single-…

## Related documents

- [2026-16228](https://policyrisk.com/federal-register/2026-16228): HUD's Implementation of the Fair Housing Act's Disparate Impact Standard; Amendments to HUD's Title VI Regulations, 2026-08-10
- [2026-13939](https://policyrisk.com/federal-register/2026-13939): Rescission of Floodplain Management and Protection of Wetlands; Minimum Property Standards for Flood Hazard Exposure; Building to the Feder…, 2026-07-10
- [2026-08406](https://policyrisk.com/federal-register/2026-08406): HOME Investment Partnerships Program: Further Program Updates and Streamlining, 2026-04-30
- [2026-08339](https://policyrisk.com/federal-register/2026-08339): HOME Investment Partnerships Program: Further Program Updates and Streamlining, 2026-04-29
- [2026-08244](https://policyrisk.com/federal-register/2026-08244): Equal Access to Housing in HUD Programs Revisions, 2026-04-28
- [2026-06926](https://policyrisk.com/federal-register/2026-06926): HOME Investment Partnerships Program-Maximum Per-Unit Subsidy Limit Methodology and Amount; Notice for Comment, 2026-04-10

## Sources
- [2026-19455 on federalregister.gov](https://www.federalregister.gov/documents/2026/09/23/2026-19455/credit-watch-termination-initiative-terminations-of-direct-endorsement-de-approval)
- [2026-19455 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-09-23/pdf/2026-19455.pdf)

## Related
- [Previous: 2026-19454, Combined Notice of Filings](https://policyrisk.com/federal-register/2026-19454)
- [Next: 2026-19457, National Institute of Neurological Disorders and Stroke; Notice of Closed Meeti…](https://policyrisk.com/federal-register/2026-19457)
- [All Federal Register documents](https://policyrisk.com/federal-register)

Source: PRIA, https://policyrisk.com/federal-register/2026-19455 (as of 2026-09-30).