Can an FHA-approved Mortgagee act as a sponsored TPO and principal or authorized agent for another FHA-approved Mortgagee?

An FHA-approved Mortgagee may act as a sponsored Third-Party Originator (TPO) in a Sponsor/Sponsored TPO relationship.
 
Only an FHA-approved Mortgagee with Unconditional Direct Endorsement authority may participate as a principal or authorized agent in a Principal/Authorized Agent relationship.
 
For additional information see Handbook 4000.1 Section I.A.5.a.iv and v available 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-03044