New Mortgagee Letter Issued to Non FHA-approved Mortgage Brokers

A new Mortgagee Letter has been issued to remind lenders of existing FHA policy. This letter regards the use of non FHA-approved mortgage brokers when originating FHA-insured forward mortgages, and outlines the fact that FHA loan origination services must be performed by a FHA-approved lender or FHA-approved mortgage broker (loan correspondent). In terms of compensation, an FHA-approved loan correspondent may be compensated for the actual loan origination services that are performed either directly by the consumer or indirectly by the FHA-approved lender.

To read this mortgagee letter and the details please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/08-17ml.doc