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. available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

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-02070