Can an FHA-approved bank or credit union be a Sponsored Third Party Originator (TPO)?

Yes.  A Third-Party Originator (TPO) is an Entity that originates FHA-insured mortgages for an FHA-approved mortgagee. A TPO may be an FHA-approved Entity or a non-FHA-approved Entity. 
FHA allows originations between a TPO and an unconditional Direct Endorsement (DE) Mortgagee that meet the following:   
  • The TPO must originate the loan. 
  • The DE Mortgagee must underwrite the loan. 
  • The loan can be funded and closed by the TPO if the TPO is an FHA approved Mortgagee. 
  • The FHA approved Mortgagee serving as the TPO on the loan will not be able to access the loan file in the FHA Connection (FHAC).  
  • A relationship between a TPO and an unconditional DE Mortgagee must be registered by the DE Mortgagee in FHAC. 

For additional information see Handbook 4000.1 I.A.5.a.i.(A)(1)&(3); II.A.1.a.iii.(A)(1); II.A.1.a.iii.(B)(1)(b) 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-04139