Lenders seeking FHA approval must submit an online application containing all information and documentation required to demonstrate eligibility for approval as provided in the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1). The approval process applies to lenders seeking to participate in Single Family, Multifamily, and Healthcare loan programs.
Each applicant will create credentials to be associated with the online application. These credentials will automatically expire after 120 days from the date they are created. If the application process has not been completed, all processes associated with the application expire and a new application will have to be submitted. Therefore, applicants should first prepare the standard information and assemble the required documentation necessary for a complete application before creating credentials to begin the online application.
Handbook 4000.1, Section I.A.3 covers the application and eligibility requirements for FHA approval. Applicants must ensure that all information contained in and documentation submitted with the application is true, complete, and up to date as of the date of submission of the application.
The documentation required to be submitted with a completed application will depend on the type of Mortgagee for which an applicant is applying. Select from one of the following types:
Non-Supervised Mortgagee: Lending institutions that have as their principal activity the lending or investing of funds in real estate mortgages, consumer installment notes, or similar advances of credit or the purchase of consumer installment contracts or from a directly related field. A directly related field is something directly related to the lending or investing of funds in real estate mortgages, not simply actions relating to real estate in general.
Supervised Mortgagee: Banks, savings banks and credit unions that are members of the Federal Reserve System, or regulated by the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC) or the National Credit Union Administration (NCUA). There are two categories of Supervised Mortgagees based on the applicant's consolidated total assets at the beginning of the fiscal year. As follows:
Large Supervised Mortgagee has consolidated total assets of $500 million or more at the beginning of the fiscal year.
Small Supervised Mortgagee has consolidated total assets of less than $500 million the beginning of the fiscal year.
Government Mortgagee: Federal, state, or municipal government agencies, a Federal Reserve Bank, a Federal Home Loan Bank, the Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac), or the Federal National Mortgage Association (FNMA, or Fannie Mae).
Investing Mortgagee: Organizations that invest funds under their own control may apply for this approval if they want to purchase, hold, or sell FHA-insured Mortgages. An Investing Mortgagee may not originate, underwrite, or close FHA-insured Mortgages in its own name or submit applications for FHA mortgage insurance.
Title I and Title II approval may be applied for separately or in the same application.
A nonrefundable application fee must be paid when submitting an application for approval. Applicants applying for both Title I and Title II approval, whether simultaneously or separately, will only be assessed a single application fee. Mortgagees applying as Government Mortgagees or organized as Nonprofits are not required to pay this application fee.
In addition to submitting the standard information and required documentation with the online application, all lenders must confirm compliance through the Initial Certification Statements. Applicants must provide an explanation and supporting documentation for all negative responses.
Lenders with questions who are currently preparing or planning to apply for FHA approval in the near future may contact the FHA Resource Center via email at email@example.com or telephone at (800) 225-5342. Lenders can also perform research through the FHA Resource Center's Knowledge Base of FAQs.