How does the Mortgagee confirm designated employees and/or Affiliates are permitted to participate in FHA programs?

The Mortgagee must confirm it verified, through each of the following systems, that designated employees and/or Affiliates were permitted to participate in FHA programs. If any of the designated employees and/or Affiliates are found to be ineligible, they are restricted from participating in FHA programs.

For additional information about Restricted Participation see Handbook 4000.1 V.A.2.b.i(B) 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-02488