Large Supervised Mortgagee

 

 


A Large Supervised Mortgagee is a member of the Federal Reserve System, or regulated by FDIC, OCC, or NCUA, with consolidated total assets of $500 million or more at the beginning of the fiscal year.

Eligibility Requirements for FHA Program Approval

Online Application Attachment Category

Required Documentation

Standards

Financial Requirements

Required Financial Statements

Independent Auditor's Report comprising audited financial statements including the computation of adjusted net worth; and
Consolidated schedule or Call Report, if necessary

  • Audited financial statements must be prepared in accordance with GAAP and must demonstrate the Mortgagee has:
    • $1,000,000 minimum adjusted net worth at all times
    • $200,000 minimum liquid assets at all times
  • Audited financial statements must cover 12 months of operation.  For companies operating fewer than 12 months the audited financial statements must cover all months of operation
  • End date of the audited financial statements must align with the Mortgagee's fiscal year end period at the time of application
  • Independent Auditor's Report is to be prepared in accordance with GAAS and GAGAS
  • Independent Auditor's Report and opinion must include the Mortgagee's computation of its adjusted net worth
  • Adjusted net worth and liquid assets both must be computed in accordance with the HUD OIG Handbook 2000.04, Consolidated Audit Guide for Audits of HUD Programs
  • If the end date for the audited financial reports is more than 6 months old, the Mortgagee must also submit consolidated schedule or unaudited financial statements, signed and dated by a Corporate Officer in ink, for the most recent interim accounting period ending less than three months prior to submission of the FHA application
  • Consolidated schedule or unaudited financial statements must still demonstrate the Mortgagee has:
    • $1,000,000 minimum adjusted net worth at all times
    • $200,000 minimum liquid assets at all times

Errors and Omissions Insurance

Errors & Omissions Insurance

Full Policy

  • $300,000 minimum coverage amount
  • Insured Party must be the exact name of the Mortgagee
  • Current policy must not expire until after the application process

Fidelity Bond

Fidelity Bond

Full Policy

  • $300,000 minimum coverage amount
  • Insured Party must be the exact name of the Mortgagee
  • Current policy must not expire until after the application process

Quality Control Plan

Quality Control Plan

Quality Control Plan

  • Plan must include all requirements from the Handbook 4000.1 Section V.A.1 through V.A.4

State License or Registration

State License or Registration

Charter Certificate

  • Active chartered institution
  • Alternative document can be NMLS registration showing an Approved, Active license

Ownership and Personnel

Resume(s)

Resume for Officer in Charge

  • Must cover most recent 7-year period
  • Must provide enough detail to demonstrate person has 3 years of experience in the specific Mortgagee functions or activities that the Mortgagee is seeking approval to perform
  • Person must be employed exclusively by the Mortgagee