FHA Issues FAQ for Branch Registration Requirements

FHA Issues FAQ for Branch Registration Requirements

The Federal Housing Administration published Frequently Asked Questions in response to a final rule that updates branch office registration requirements. Details were announced in FHA Info #2024-2.

Why it matters: The final rule, published on February 2, makes it optional for lenders and mortgagees to register branch offices where they originate FHA Title I or Title II loans.

  • The most frequent question asked was whether the new rule impacts lender approval recertifications for lenders and mortgagees whose fiscal year ended on December 31, 2023.
  • FHA says the final rule — which becomes effective on March 4, 2024 — is NOT applicable for those institutions whose fiscal year ended on December 31, 2023, and are required to recertify by March 31, 2024.
  • Recertification fees for those lenders will be calculated based on the number of registered branches as of the last business day of their fiscal year-end certification period.

FHA will also soon publish a Mortgagee Letter that provides implementation guidance for the provisions in the rule.

Published by

Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.