The Mortgagee must obtain separate Direct Endorsement (DE) approval for forward mortgage and Home Equity Conversion Mortgage (HECM) programs.
The Mortgagee must receive a minimum of five Firm Commitments within a period of 12 consecutive months following the date of the DE Program Test Case approval letter in order to be granted HECM Unconditional DE authority. After the Mortgagee successfully completes the required HECM Test Cases, FHA will grant the Mortgagee approval for Unconditional DE authority.
Handbook 4000.1 I.A.5.a.iii.(A)(4)(a) is available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh