Can a Mortgagee appeal if they are denied unconditional DE authority?

Yes.  The Mortgagee may appeal FHA’s denial of unconditional DE Authority by requesting an informal conference. The Mortgagee must submit its appeal in writing to the Homeownership Center (HOC) that processed the Test Cases. The HOC must receive the appeal within 30 Days of the date of the notice of denial.
FHA will conduct an informal conference with the Mortgagee and its counsel, if any, no later than 60 Days from the date of the denial.
Following the informal conference, FHA will issue a determination in writing stating whether Unconditional DE authority is approved or denied.
The Mortgagee may appeal a denial following the informal conference by submitting a written request to the Deputy Assistant Secretary (DAS) for Single Family Housing, or his or her designee, within 30 Days of the date of the denial determination.
The Mortgagee is not entitled to any meeting or informal conference with the DAS or the designee and will be notified in writing of the decision of the DAS or the designee. The decision of the DAS or the designee constitutes final agency action.
Any Mortgagee who is denied unconditional DE authority will not be permitted to reapply until it has:
  • demonstrated appropriate remedial education or action;
  • supplied evidence to support such action; and
  • waited a minimum of 180 Days from the date of final agency action.
Handbook 4000.1 I.A.5.a.iii(A)(4)(b) is 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-05080