Can an FHA-approved lender be set up as a Sponsored TPO and Principal/Authorized Agent by another FHA lender?

Yes. There is no relationship limitation for FHA-approved unconditional DE lenders.

An FHA-approved DE lender may set up relationships with another FHA-approved DE lender to act as a

  • sponsored third-party originator (TPO) in a sponsored TPO/Sponsor relationship; and/or
  • as an authorized agent in a Principal/Authorized Agent relationship.

For additional information see Handbook 4000.1 I.A.5.a.iv.-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-03044