Comment Submitted by Ralph Hays, Mortgage Consultants, Inc.

RE: HUD Net Worth Requirement Increase Raising the net worth requirement for many lenders in small communities will create extreme hardships if not create an impossible scenario. In many small communities, raising the net worth 2 1/2 times the present limiit simply is not possible, and will put many good FHA lenders out of business. How can it possibly help the homebuyer to remove healthy competition from the marketplace? Also, the most important factor for HUD to evaluate is the lenders scorecard if the lender has a minimum of 5 years experience. Many large lenders will have more than adequate capital, but may have a much lower scorecard than small community lenders. I strongly oppose this change!