Does FHA have any employment requirements that apply to staff of sponsored third party originators?

Sponsored third party originators involved in FHA loan transactions must comply with all applicable federal, state, and local licensing and other requirements governing their loan origination activities.

FHA does not have any additional employment requirements and/or restrictions that apply to the staff of sponsored third party originators, unless the company is also an FHA approved lender.  If the sponsored third party originator is also an FHA approved lender, it is subject to FHA staffing and employment requirements. 

FHA prohibits employees who are involved with FHA transactions from working for another company in mortgage lending, real estate or a related field, whether on a part time or full time basis.  

For additional information see Handbook 4000.1 I.A.3.c.iv. available 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-03033