FHA loan files will be a page or two lighter under a new directive eliminating paper mortgage insurance certificates.Effective immediately, the Federal Housing Administration will not print out MICs or require them when submitting claims, FHA Commissioner John Weicher said Oct. 20 at the annual MBA convention in San Diego. Lenders will be able to confirm electronically that a certificate has been issued. The change will not only save a few trees -- "That's 2 million documents you won't have to request, receive, file, and track," Mr. Weicher told the MBA -- it also will save about $10 million. The FHA commissioner called the switch "another significant step toward a modern electronic mortgage process." Also effective immediately, the FHA is "sharply" reducing data entry requirements by 40 items and tracking sales electronically to enforce its anti-flipping rules.

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