How does an FHA-approved lender withdraw its approval?

A Mortgagee that does not wish to retain its FHA approval must submit a Change 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 Change 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  A Mortgagee whose approval is voluntarily withdrawn may reapply for FHA approval any time after its withdrawal.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: https://www.hud.gov/lenders under the LEAP Information link in the Approvals & Renewals section. 

For additional information, see Handbook 4000.1 I.A.9. 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-02475