FHA Handbooks

2. Lender Eligibility Requirements

May 10, 2009

The table below outlines the requirements that mortgage lenders must meet to be eligible for participation in the DE Lender Program.

Requirement	Description
Application	A lender must apply for, and receive, basic FHA mortgage lender approval from FHA's Office of Lender Activities and Program Compliance.
Lender Status	An eligible lender must either be a supervised or non-supervised mortgage lender, or governmental institution. Note: A lender who is approved by FHA only as a loan correspondent is not eligible to be a DE lender, but may participate to the limited extent as described in HUD 4155.2 2.B.6.
Experience	An eligible DE mortgage lender must have five years experience in origination of single family mortgages, or a principal officer with a minimum of five years managerial experience in origination of single family mortgages.
Staff Requirement	An eligible DE mortgage lender must have on staff a full time employee to serve as underwriter. References: For general information on underwriting/underwriters, see HUD 4155.2 2.A.3. For a description of the qualification criteria and responsibilities of the underwriter, see HUD4155.2 2.A.4.
Quality Control Plan	An eligible DE mortgage lender must have a developed and implemented Quality Control Plan. Reference: For more information on quality control plans, see HUD 4155.2 2.A.2.b.
Net Worth	An eligible DE mortgage lender must have the net worth requirements prescribed in HUD 4060.1, Mortgagee Approval Handbook.