As part of its application, a corporate officer for the applicant must complete a series of certification statements that address compliance with FHA requirements.
A mortgagee shall not have any officer, partner, director, principal, manager, supervisor, loan processor, loan underwriter, or loan originator who is:
• Currently suspended, terminated, debarred, fined, convicted, denied approval, or subject to license revocation or other sanction by a federal, state, or local government agency, or by any other regulatory or oversight entity with jurisdiction including a Limited Denial of Participation (LDP), or other restriction under Part 24 of Title 24 or Part 180 of Title 2 (as implemented by Part 2424 of Title 2) of the CFR or any successor regulations to such parts, or under similar provisions of any other federal or state agency;
• Under indictment for, or convicted of, an offense that reflects adversely upon the applicant’s integrity, competence or fitness to meet the responsibilities of an approved mortgagee;
• Subject to unresolved findings in a HUD or other government audit, investigation, or review;
• Engaged in business practices that do not conform to generally accepted practices of prudent mortgagees or that demonstrate irresponsibility;
• Convicted of, or who has pled guilty or nolo contendere to a felony related to participation in the real estate or mortgage industry during the 7-years preceding the application date for FHA approval; or any time before the application date, if it involved fraud, dishonesty, breach of trust, or money laundering;
• In violation of the S.A.F.E. Mortgage Licensing Act of 2008 or any applicable State law or its equivalent under state law, including all Nationwide Mortgage Licensing System and Registry requirements.
The Initial Lender Certification Statements can be viewed on the How to Become an FHA-Approved Lender web page at http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/lender/lendappr.
Handbook 4000.1 I.A.3 is available at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh