A Principal/Authorized Agent Relationship is one in which a mortgagee with Unconditional Direct Endorsement (DE) authority permits another DE-approved mortgagee to underwrite mortgages on its behalf.
The relationship must be documented in the Lender Electronic Assessment Portal (LEAP) by the authorized agent and the principal’s FHA Lender ID must be entered in the “Originator” field on the FHA case file and in FHAC.
The principal must originate the mortgage and the authorized agent must underwrite the mortgage. The mortgage may close in either mortgagee’s name, and either may submit the mortgage for insurance endorsement.
The authorized agent must have Unconditional DE authority to underwrite the type of Mortgage that is being underwritten. The mortgagees must be approved as follows.
To originate forward mortgages:
- the principal may have Unconditional DE authority for either forward mortgages or Home Equity Conversion Mortgages (HECM); and
- the authorized agent must have Unconditional DE authority for forward mortgages.
To originate Home Equity Conversion Mortgages:
- the principal may have Unconditional DE authority for either forward mortgages or HECM; and
- the authorized agent must have Unconditional DE authority for HECM.