Can an FHA lender acting as a sponsored TPO close a loan in its name if it does not have its DE yet?

Yes. FHA-approved lenders with either conditional or unconditional Direct Endorsement (DE) authority that are acting as a sponsored third-party originator (TPO) can close loans in their own name.

For more information see Handbook 4000.1 II.A.6.a.v. 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-02972