Question:

Is a non FHA approved mortgage broker allowed to serve FHA loans?

Answer:

FHA loan origination is expected to be served only by FHA approved lenders, FHA approved mortgage broker or loan correspondents.

If the mortgage broker is not FHA approved, loan origination services cannot be performed. If such do exist, the mortgage broker is not entitled to a payment from FHA for loan originating services.

It is, however, possible that a non FHA approved mortgage lender or broker assists a customer in obtaining an FHA loan. In that case, the mortgage broker will have to charge the borrower for the service, rather than FHA. In every case, the borrower cannot be charged fees that do not correspond to broker fees offered on the market. Charging exorbitant fees, or fees undisclosed on the HUD-1 statement will be in violation of FHA regulations regarding non FHA approved mortgage brokers.

If you are a mortgage broker and want to become FHA approved, you should turn to the official FHA guidelines, as the most stringent requirement (the one about high net worth) has been recently alleviated - a lender/broker is now allowed to substitute with a bond part of the audited net worth requirement.

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