How does a lender obtain HUD approval to originate FHA loans nationwide?

An “Area Approved for Business” (AAFB) is the geographic area in which a lender’s home or branch office is permitted to originate or underwrite FHA mortgages. The AAFB is subdivided into HUD Field Office jurisdictions. 

All branch offices registered by a lender will initially be granted a nationwide AAFB. The branch may only exercise its authority to originate or underwrite FHA mortgages in those states where the lender fully complies with state origination and/or underwriting licensing and approval requirements. 

For additional information see Handbook 4000.1 I.A.4.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-05100