New lenders seeking Lender Insurance (LI) authority may not be approved until the two year claim and default record has been established.
An exception may be made if a lender lacks an LI Compare Ratio because it was recently created by a merger, acquisition, or reorganization that resulted in the issuance of a new FHA Lender ID. See Handbook 4000.1 I.A.5.b.ii.(A)(1) for the exception criteria.
For more information, visit the Lender Insurance Program web page at http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/lender/lendins.
Handbook 4000.1 is available at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh.