A Mortgagee must be approved as a Title II Supervised, Nonsupervised, or Government Mortgagee to be eligible to participate in the DE Program. Mortgagees approved as Investing Mortgagees are not eligible to participate.
The Mortgagee must have:
- an underwriter on its permanent staff; and
- at least five years of experience in the origination of Single Family Mortgages or a Principal Officer (see Corporate Office in the Single Family Handbook 4000.1) with at least five years of managerial experience in the origination of Single Family Mortgages.
Unconditional DE authority may be granted without the need for the Test Case phase following a merger, acquisition, or reorganization, so long as the criteria in Handbook 4000.1 I.A.5.a.ii (B) are met.
For additional information see Handbook 4000.1 I.A.5.a.ii is available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh