May a non-FHA approved mortgage broker be paid a fee on a HECM loan?

FHA's regulations allow a Direct Endorsement (DE) Lender to sponsor a Third Party Originator (TPO) who is not FHA approved to originate FHA loans.

This is explained in Handbook 4000.1 Section I.A.5.a.v at

As a reminder, HUD prohibits Home Equity Conversion Mortgage (HECM) mortgage originators from also engaging in the sale or solicitation of other financial or insurance products.

Additional information is contained in the Federal Register 24 CFR Part 206 Subpart B available at:



All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-01939