FHA Pre-Licensing Checklist

Here are the most common licensing issues facing new FHA license applicants.  For a complete list of FHA licensing requirements, consult the applicable FHA Handbooks.  Better yet - call us to take the mystery out of FHA licensing.

 

ü       Company CPA-audited financial statements (no more than 12 months old).

 

ü       Company CPA-audited net worth (initial approval):

(Subject to additional FHA net worth and liquid asset rules):   

 

§        Loan Correspondent: $63,000* (20% liquid asset requirement)

§        Non-Supervised Mortgagee: $250,000 (20% liquid asset requirement**)

 

  *Loan Correspondent Branch Offices (add $25,000 per branch office)

**Lesser of 20% of net worth, or $100,000.

 

ü       Warehouse line of credit (NSM’s only).

 

ü       No sole proprietors.

 

ü       LLC member restrictions.

 

ü       Commercial office space.

 

ü       Qualified, full-time, single-employment, principal corporate officer.

 

ü       Dual employment restrictions. (DRE brokers – pay attention!)

 

ü       Outsourcing restrictions.

 

ü       FHA compensation restrictions.

 

ü       Background checks (credit, criminal, regulatory).

 

ü       No “Net Branching”. 

 

IMPORTANT:  FHA IS A LENDING PROGRAM - NOT A STATE MORTGAGE LICENSE (REGARDLESS OF YOUR FHA-APPROVED LENDING AREAS)!  

 

We take care of the licensing, so that you can take care of the lending! SM