FL mortgages : FL mortgage rates and home loans

Why work with a Government Approved Correspondent Lender?
Simply put, more programs like FHA, VA & Reverse Mortgages that are only available to approved lenders.

FHA loans can be originated only by mortgagees that have been approved by the U.S. Department of Housing and Urban Development (HUD). HUD has recently imposed heavy sanctions on mortgage brokers involved in co-brokering loans with FHA approved lenders - which is not legal. Brokers and lenders interested in originating FHA loans must go through the approval process.

A loan correspondent is HUD parlance for a mortgage broker, or “mini-eagle”. This category of approval may only originate FHA loans. It may neither hold nor sell such loans. In addition, the loan correspondent must have one or more registered sponsors to underwrite and fund the FHA loans that it originates. Sponsors must be supervised or non-supervised lenders with Direct Endorsement approval from HUD.

When approved, each broker or lender is issued an exclusive HUD mortgagee identification number that is to be used only by the approved entity to order FHA case numbers and deal with HUD on a variety of issues via the FHA Connection on the internet. This identification number will allow the approved mortgagee to order an FHA case number anywhere within the lending area of the mortgagee’s home office.

The strict guidelines associated with obtaining the HUD designation assures that you are working with a Company that is upheld to the strictest guidelines. HUD approved lenders are required to annually be subject to company audits ensuring minimum net worth and financial status.

So, if your being offered a FHA mortgage and your broker is not approved by HUD as a Correspondent Lender - the Broker is acting illegally!