How does an FHA- approved mortgagee transfer its FHA approval to a new company?

If a mortgagee receives a different federal Taxpayer Identification Number (TIN) as a result of a business change, the mortgagee must submit a new application for FHA mortgagee approval.

FHA will issue a new FHA lender ID to the mortgagee upon approval.  When the new FHA lender ID is issued, the old FHA lender ID will remain active for approximately 45 days to allow for completion of processing of mortgages in process under that identification number.

If the mortgagee does not receive a new federal TIN as a result of a business change, then the mortgagee must submit the following documents to FHA using the Lender Electronic Assessment Portal (LEAP) within 10 business days of the change:

  •   a Notice of Material Event in the form of a letter signed by a Corporate Officer containing the following provisions:

-   providing a complete description of the business change;

-   confirming that there has been no change in the federal TIN or depositor insurance (in the case of a Supervised Mortgagee);

-   stipulating that the institution will continue to comply with all FHA approval and eligibility requirements; and

-   stipulating that the newly chartered entity will continue to be responsible for the assets and liabilities of the former entity, including any problems found subsequently by HUD in the origination or servicing of any mortgages originated or serviced by the entity prior to the business change; and

  •   a copy of the Business Formation Documents.

For more information about submitting a Notice of Material Event using LEAP refer to the LEAP User Manual located at: http://www.hud.gov/lenders under the LEAP Information link in the Approvals & Renewals section.

Handbook 4000.1 I.A.7.a.ii;  I.A.7.n  is available at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh.