Can a company that operates as both a mortgage company and a real estate company be approved as a FHA lender?
Yes as long as the meet the “principal activity” part of the definition of a nonsupervised lender and their loan officers who plan to originate FHA loans do not have outside employment in the real estate industry. Principal Activity: The FHA definitions of nonsupervised lenders are as follows: Nonsupervised Mortgagee: Nondepository financial entities that have as their principal activity the origination, underwriting, funding, servicing and/or holding of real estate mortgages. They are commonly known as mortgage bankers, correspondent lenders or mortgage lenders in the industry Nonsupervised Loan Correspondent: Nondepository financial entities that have as their principal activity the origination of real estate mortgages. They are commonly known as mortgage brokers in the industry. They must sale or transfer their FHA originations to the FHA approved mortgagee who underwrote the loan and can have multiple mortgagees that underwrite their loans. These underwriting mortgagees are referre
