Can a new lender without a two year claim & default history qualify for Lender Insurance authority?

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

Handbook 4000.1 is available at