What are the requirements for a mortgagee’s funding program?

A Nonsupervised Mortgagee that originates FHA Mortgages must maintain a warehouse line of credit or other mortgage- funding program acceptable to FHA.  Title I Mortgagees must have a minimum $500,000 warehouse line of credit or funding program.  Except for multifamily Mortgagees, Title II Mortgagees must have a minimum $1,000,000 warehouse line of credit or funding program, and must ensure the funding program or warehouse line of credit is sufficient to fund the Mortgagee’s average 60-day origination operations.  The Mortgagee’s average 60-day origination operations refer to loans closed and funded, and/or purchased by the Mortgagee during their highest 60-day period by mortgage amount over the past 12 months.

An Investing Mortgagee must have available, or have arranged for, funds or a line of credit sufficient to support a projected investment of at least $1,000,000 in property improvement, Manufactured Housing or real estate loans or Mortgages.

For additional information see Handbook 4000.1 I.A.3.c.ix at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh.