What are the types of Mortgagee Approvals?
Any company that wants to originate, underwrite, fund, service or own FHA loans must have its own approval. It cannot use another company’s approval including any related companies. Types of Approved Mortgagees: FHA classifies approved mortgagees based on the functions they will perform, type of organization, type of supervisory agency, and net worth. Supervised Mortgagee: Financial institutions that are members of the Federal Reserve System, and financial institutions whose accounts are insured by the Federal Deposit Insurance Corporation (FDIC), or the National Credit Union Administration (NCUA). Examples of supervised mortgagees are banks, savings associations, and credit unions. These mortgagees can originate, underwrite, fund, service and/or hold FHA insured loans. 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 mortg
