Mortgage Brokers

If you are looking for an FHA loan through a mortgage broker, the broker must be classified as a non-supervised loan correspondent. These are the only brokerages that are approved to originate Title II single-family loans and Title I loans.

Direct Lenders

Financial institutions, including banks and credit unions, should obtain approval as a supervised loan correspondent to originate Title II and Title I loans.

Mortgage Broker Requirements

To obtain approval to fund FHA loans, the mortgage broker must complete form 11701 (application), pay a $1,000 application fee, provide state license verification, doing-business-as verification, business credit report, audited financial statements, evidence of facilities, a resume, and personal credit reports of the principals.

Direct Lender Requirements

To obtain approval to fund FHA loans as a financial institution, the lender must submit form 11701 (application), a $1,000 application fee, DBA verification, quality-control letter, and sponsor/funding letter.

Other Lending Classifications

Other lending classifications include supervised mortgagee for financial institutions that provide underwriting and servicing of FHA loan in addition to originating the loan; government mortgagee for government entities that wish to originate, service or underwrite FHA loans; and investment mortgagee for any entity that wishes to purchase FHA backed mortgage securities.

Source:

hud.gov:How to Become a HUD-Approved Lender