In today’s market, financial institutions must provide customers with a wide array of financial products and services. With depressed real estate values and personal incomes, Federal Housing Administration (FHA) sponsored mortgages have become a popular solution to retain customer relationships and provide a strong source of fee income. Most institutions that participate in FHA mortgage programs have been approved as either FHA supervised mortgagees or supervised loan correspondents. A supervised mortgagee is a
financial institution that is a member of the Federal Reserve System or has accounts insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). A supervised mortgagee may originate, underwrite, and service FHA loans. A supervised loan correspondent is approved to originate FHA loans through an FHA-approved sponsor.
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