Can an FHA lender acting as a sponsored TPO close the loan and have the MIC issued in its name?

The lender may permit its sponsored third party originator (TPO) to purchase or hold FHA-insured mortgages and close mortgages in their own name, if the TPO is also an FHA-approved lender. 

For additional information see Handbook 4000.1 I.A.5.a.v. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
 

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-05124