How To Become A Correspondent Lender
FHA approval is required to originate reverse mortgages. If you have approval, you should have a ten digit ID #. If you do not have approval with FHA / HUD, we can assist you with this matter. The requirements are attached for your review. As an approved sponsor, we can streamline the process by reviewing the required documentation and submitting to HUD on your behalf.
Net Worth
$63,000, plus $25,000 for each branch office up to a maximum required net worth of $250,000. Loan correspondents are not subject to net worth requirements based on mortgage volume. {HUD handbook 4060.1, 2-4 D}
Annual Audit Report
Mortgagees must submit to the Department of Housing and Urban Development within 90 days of the close of its fiscal year, an acceptable annual certified audit report. {HUD handbook 4060.1, REV-1, 3-4,C5} The audit report must be prepared in accordance with the standards contained in HUD Handbook IG 2000.4 REV-1, Consolidated Audit Guide for Audits of HUD programs.
Warehouse Line of Credit
Mortgagees must maintain a warehouse line of credit or other mortgage funding program acceptable to the Department (such as table funding or concurrent funding with Financial Freedom.) that is adequate to fund the mortgagee's average 60- day origination production pipeline, but not less than a $1 million warehouse line of credit or funding program. {HUD Handbook 4060.1 REV-1, 3-3C}
The following documents must be submitted for initial approval of Financial Freedom reverse mortgage professionals:
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A non-refundable application fee to HUD in the amount of $1,000.
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HUD form 92001 - D will be provided by Financial Freedom and sent to you for signature to be forwarded to HUD with the above requirements.
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Current certified audit report.
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Letter establishing or confirming line of credit of not less than $1 million, or other acceptable funding program such as table funding with Financial Freedom.
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Certification that neither the company, nor any officers have been sanctioned or otherwise denied a license by state or Government institution.
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Resume or other evidence that at least one senior corporate officer has at least 3 years experience in the field in which you are applying.
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Personal credit reports on senior officers of corporation/company with a letter, if applicable, explaining any derogatory credit.
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Corporate credit report (or Dun & Bradstreet).
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Month in which your fiscal year ends.
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Pictures of facilities, including signs at entrance and a certification that facilities meet HUD handbook 4060.1 REV-1 requirements.
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Quality Control plan.
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Financial Freedom will review the required information and with a certification letter to HUD, be able to submit for priority approval.