A mortgagee that does not wish to retain, or that is ineligible to retain, its FHA approval must submit a request for voluntary withdrawal of FHA approval.
The mortgagee must satisfy all outstanding payable indemnification debts and Mortgage Insurance Premiums (MIP), and transfer the servicing and ownership of any FHA-insured mortgages in its portfolio to an FHA-approved mortgagee prior to its request being approved, and the mortgagee will remain obligated on any outstanding indemnification agreements. FHA will not honor a mortgagee’s request to withdraw while there is a pending administrative action or Mortgagee Review Board (MRB) action, or while the mortgagee has unpaid indemnification claims or unsatisfied settlement agreement obligations owed to HUD. The mortgagee must submit a request for voluntary withdrawal in the form of a letter, signed by a Corporate Officer, and submitted through the Lender Electronic Assessment Portal (LEAP). The request must be submitted within 10 business days of the change in the mortgagee’s eligibility status.
A mortgagee whose approval is voluntarily withdrawn may reapply for FHA approval any time after its withdrawal.
For more information about submitting a voluntary withdrawal 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.9. is available at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh.