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njmtglender
Dud?


Joined: 05 Dec 2007
Posts: 6
Location: National

FHA FUll Eagle Able to broker?
PostPosted: Wed May 28, 2008 7:44 pm Reply with quoteBack to top

I was just speaking to someone who mentioned that FHA Full Eagle shops can indeed broker their FHA business. He went on to say that "Actually there is a mortgagee letter that allows full eagle bankers to broker if they choose to. But, it is a company thing if they want to agree to accept it."

1-Does anyone know if this is true? (I've always been under the impression that if you are a Full Eagle you cannot broker your FHA business)

2-If it IS true do you have link to the FHA guideline stating this can be done?

3-Do you have a copy of the letter that needs to be signed?

You can respond here...or e-mail me njmtglender@yahoo.com
Thanks!
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Hackney71
C-4


Joined: 08 Nov 2007
Posts: 1260
Location: Nashville

Re: FHA FUll Eagle Able to broker?
PostPosted: Thu May 29, 2008 11:27 am Reply with quoteBack to top

Completely a false statement... You have to be FHA approved to take an FHA apllication...

The only gray area is if a broker can get a "referral" fee like $350ish for sending a file to an FHA lender if you are not approved.

Now, I guess you could broker to FHA approved brokers if you work out the whole "who's name the appraisal is in" thing and figure out how to deliver the packages to end investor in time... IE the broker had a 30 day lock and your DE underwriter has to make it saleable, package it up and get it to the end investor...

Good luck, lol

Maybe you meant going the other way with it and you actually brokering it to another lender so they underwrite the file and pay you YSP/SRP, and close in their name/ table fund... Yeah you can t\do that instead of being a correspondent...

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FIXMYLOAN
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Joined: 27 Dec 2007
Posts: 4684
Location: Jersey

Re: FHA FUll Eagle Able to broker?
PostPosted: Thu May 29, 2008 11:36 am Reply with quoteBack to top

njmtglender wrote:
I was just speaking to someone who mentioned that FHA Full Eagle shops can indeed broker their FHA business. He went on to say that "Actually there is a mortgagee letter that allows full eagle bankers to broker if they choose to. But, it is a company thing if they want to agree to accept it."

1-Does anyone know if this is true? (I've always been under the impression that if you are a Full Eagle you cannot broker your FHA business)

2-If it IS true do you have link to the FHA guideline stating this can be done?

3-Do you have a copy of the letter that needs to be signed?

You can respond here...or e-mail me njmtglender@yahoo.com
Thanks!


Since you are in NJ, it's also important to know the "app plus 5" rule for fees applies. So far, the amount allowable has not been challenged in court, but advice has been given through NJ DoB&I that "reasonable" is interpreted to mean "Less than $ 500.00"

I am an NJ Broker, and I worked for a company that solicited APP plus Five business in the past, but I have not accepted those referrals for some time, because LOs from these banks have flat out asked for more money off the HUD. I look lousy in orange, unless it's socks. Wink


The fee is paid to the bank, btw, not the LO.

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njmtglender
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Joined: 05 Dec 2007
Posts: 6
Location: National

Re: FHA FUll Eagle Able to broker?
PostPosted: Thu May 29, 2008 11:59 am Reply with quoteBack to top

No No ...you guys are answering regarding NON approved brokers. I know the deal there. Usually only Mini Eagle shops can broker business. If you are a Full Eagle you must underwrite the loan yourself using your own FHA designated UW's. Reason for this rule (In my interpritation) is that if you have designated UW's why wouldn't you close the loan yourself instead of brokering it...there must be an issue with it.

My question is regarding these types of brokers...I've heard there's a way though... that will allow these Full Eagle FHA approved shops to broker FHA business as well. That's what I am trying to figure out.
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Do_the_math
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Joined: 14 Mar 2007
Posts: 2564
Location: Groovy Town

Re: FHA FUll Eagle Able to broker?
PostPosted: Thu May 29, 2008 2:01 pm Reply with quoteBack to top

njmtglender wrote:
No No ...you guys are answering regarding NON approved brokers. I know the deal there. Usually only Mini Eagle shops can broker business. If you are a Full Eagle you must underwrite the loan yourself using your own FHA designated UW's. Reason for this rule (In my interpritation) is that if you have designated UW's why wouldn't you close the loan yourself instead of brokering it...there must be an issue with it.

My question is regarding these types of brokers...I've heard there's a way though... that will allow these Full Eagle FHA approved shops to broker FHA business as well. That's what I am trying to figure out.


Sounds like you are talking about authorized agents. I follow with links to ML letters when I get back shortly.

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FIXMYLOAN
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Joined: 27 Dec 2007
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Location: Jersey

Re: FHA FUll Eagle Able to broker?
PostPosted: Thu May 29, 2008 2:08 pm Reply with quoteBack to top

njmtglender wrote:
No No ...you guys are answering regarding NON approved brokers. I know the deal there. Usually only Mini Eagle shops can broker business. If you are a Full Eagle you must underwrite the loan yourself using your own FHA designated UW's. Reason for this rule (In my interpritation) is that if you have designated UW's why wouldn't you close the loan yourself instead of brokering it...there must be an issue with it.

My question is regarding these types of brokers...I've heard there's a way though... that will allow these Full Eagle FHA approved shops to broker FHA business as well. That's what I am trying to figure out.


NOW the question makes sense.

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Do_the_math
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Joined: 14 Mar 2007
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Re: FHA FUll Eagle Able to broker?
PostPosted: Thu May 29, 2008 3:11 pm Reply with quoteBack to top

Here is information on Authorized Agents:

Quote:
Part B. Principal- Authorized Agent Relationship
5-9 Introduction. The principal-authorized agent relationship provides
mortgagees flexibility in the origination of FHA insured single-family
loans in situations where a mortgagee wishes to collaborate with another
mortgagee. This process provides mortgagees flexibility to offer
diversified loan products or programs because of the ability to team with
firms that may have more expertise in specialized areas. This includes
products such as HECM or 203(k). It also can be utilized to handle unique
situations such as when a mortgagee no longer has a DE underwriter on its
staff or for some reason does not have a particular expertise or capacity.
In almost all cases, mortgagees use this procedure when they need
assistance in the underwriting of a loan.

5-10 Principal. The principal in the relationship can only be an FHA
approved non-supervised mortgagee, supervised mortgagee or government mortgagee. FHA approved loan correspondents cannot serve as a principal.

5-11 Authorized Agent. The authorized agent can only be an FHA
approved non-supervised mortgagee or supervised mortgagee. FHA
approved loan correspondents cannot serve as an authorized agent.

5-12 Origination and Underwriting. Either party can originate or
underwrite the loan as long as they have the appropriate approval.
However, since the authorized agent typically underwrites the loan, its
FHA lender ID number is shown in the sponsor field of an FHA case file.
Also, since the principal typically takes the application, its ID is in the
originator field of the case file. Both mortgagees are responsible for the
part of the origination and underwriting processing they perform.

5-13 Mortgagee Name in Loan Closing. Per regulation Section
202.3(a)(3), the loan must close in the name of the principal. Either party
can submit the closed loan for insurance for the benefit of the principal.

5-14 Establishing the Relationship. The relationship must be set up by
the authorized agent via the FHA Connection as explained in the Lender
Approval Section of the FHA Connection User Guide located at:
https://entp.hud.gov/pdf/mp_lndapp.pdf.

5-15 Origination Fee. As in all originations, the amount of the
origination fee each lender receives is a contractual matter to be
determined by the two parties, which in these cases are the principal and
authorized agent. The total fees charged to a mortgagor may not exceed
the amount allowed for the type of FHA single-family


http://www.hud.gov/offices/adm.....c5HSGH.pdf

Yes, a FHA lender can broker FHA loans to approved FHA lenders.

Again, we are back to agency.

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Do_the_math
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Re: FHA FUll Eagle Able to broker?
PostPosted: Thu May 29, 2008 5:56 pm Reply with quoteBack to top

Oh, and by the way, the "authorized agent" for the "principal" lender would have to disclose YSP under RESPA even if closing the loan under their own name with a concurrent assignment.

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njmtglender
Dud?


Joined: 05 Dec 2007
Posts: 6
Location: National

Re: FHA FUll Eagle Able to broker?
PostPosted: Thu May 29, 2008 7:11 pm Reply with quoteBack to top

Thanks for the response. That's what I needed.
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dks
Nitroglycerin


Joined: 11 Jan 2008
Posts: 556

Re: FHA FUll Eagle Able to broker?
PostPosted: Fri May 30, 2008 4:11 am Reply with quoteBack to top

njmtglender wrote:
I was just speaking to someone who mentioned that FHA Full Eagle shops can indeed broker their FHA business. He went on to say that "Actually there is a mortgagee letter that allows full eagle bankers to broker if they choose to. But, it is a company thing if they want to agree to accept it."

1-Does anyone know if this is true? (I've always been under the impression that if you are a Full Eagle you cannot broker your FHA business)

2-If it IS true do you have link to the FHA guideline stating this can be done?

3-Do you have a copy of the letter that needs to be signed?

You can respond here...or e-mail me njmtglender@yahoo.com
Thanks!


yes this is true. my company does it all the time if a better deal exists under a broker program than under correspondent channel.
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