A mortgagee must meet the following requirements in order to apply for and participate in FHA’s Direct Endorsement (DE) Program.
A mortgagee must have FHA approval as a Title II Supervised, Nonsupervised, or Government Mortgagee to be eligible to participate in the DE Program. Mortgagees approved as Investing Mortgagees are not eligible to participate.
The mortgagee must have:
- an underwriter on its permanent staff; and
- at least five years of experience in the origination of single family mortgages or a principal/corporate officer with at least five years of managerial experience in the origination of single family mortgages.
Unconditional DE authority may be granted without the need for the test case phase following a merger, acquisition, or reorganization, so long as the criteria in Handbook 4000.1 I.A.5.a.ii.(B) are met.
Handbook 4000.1 I.A.1 is available at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh.