- A Mortgagee whose authority has been terminated under Credit Watch is prohibited from originating or underwriting FHA-insured Single Family Mortgages within the area of the HUD field office(s) listed in the Credit Watch Termination Notice.
- Termination of origination authority under Credit Watch is at the branch office level within the HUD field office jurisdiction(s) cited in the final termination notice.
- Termination of Direct Endorsement underwriting authority under Credit Watch is at the institution level within the HUD field office jurisdiction(s) cited in the final termination notice.
- The Mortgagee’s general FHA approval and supplemental authorities remain unaffected.
- Mortgages that closed or were approved before the termination of origination or underwriting authority became effective, may be endorsed. Cases at earlier stages of processing cannot be submitted for insurance by the terminated Mortgagee. However, the cases may be transferred for completion of processing and underwriting to another Mortgagee authorized to originate or underwrite FHA-insured Mortgages in that area.
For additional information see Handbook 4000.1 V.E.3.a.iii at:
Additional information is available using the Credit Watch Termination link in the Oversight & Sanctions section at: https://www.hud.gov/program_offices/housing/sfh/lender/