FHA Removes Mandatory Branch Registration Requirement

FHA Removes Mandatory Branch Registration Requirement

The Federal Housing Administration published a final rule in the Federal Register [Docket No. FR-6321-F-02] that eliminates the current requirement for Mortgagees to register branch offices where they originate FHA Title I or Title II loans (including HECMs) and makes it optional.

What’s next: The provisions in this final rule become effective on March 4, 2024.

Why it matters: FHA announced the final rule in FHA Info 2024-01, which states, “As the mortgage industry has evolved to better leverage technology and remote service delivery, FHA believes that requiring a mortgagee or lender to register all branches is an unnecessary administrative and cost impediment to program participation.”

  • FHA will soon publish a Mortgagee Letter (ML) that provides implementation guidance for the provisions in the final rule.