Can an FHA-approved lender acting as a TPO or as an Authorized Agent insure loans for its Sponsor/Principal under the Lender Insurance Program?

Third Party Originators (TPO)
No.  Loans involving TPOs may only be insured under Lender Insurance by the Sponsor.  
 
Authorized Agents
  1. If the Authorized Agent and the Principal both have Lender Insurance authority, either may review and insure the loan using this authority. 
  2. If the Principal has Lender Insurance authority and the Authorized Agent does not have this authority, the Principal may review and insure the loans using this authority.  
  3. If the Authorized Agent has Lender Insurance authority and the Principal does not have this authority, the Authorized Agent may review and insure the loan using this authority. 
     
For additional information see:

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-05055