Supervised, Nonsupervised, and Investing Mortgagees must meet the following licensing requirements. The Mortgagee must have an active state license, registration, or equivalent approval to operate its business in the jurisdiction where the home office is located. Each branch office must have all licenses, registrations, or approvals required for the types of Mortgagee functions or activities performed by such branch office for the jurisdiction in which that office is located. The Mortgagee must submit a copy of its state license, registration or equivalent approval for the state in which the home office is located.
The Mortgagee, through a Corporate Officer, must certify at application that it has not been refused a license or been sanctioned by any state in which it will originate FHA mortgages.
If the Mortgagee has been subject to an action against its license, it must submit documentation concerning the action that shows the nature of the action and evidence of an acceptable resolution (such as reinstatement or subsequent approval of a license, payment of sanctions or fines, or similar documentation).
If the Mortgagee is exempt from state licensing requirements, the Mortgagee must submit documentation of the applicable exemption.
For additional information see Handbook 4000.1 I.A.3.c.vi.(A) available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh