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Question: We recently heard there may be upcoming changes to FHA’s branch registration requirements. Is this true?

Answer:

Yes. On March 1, 2023, HUD published FHA-INFO 2023-14, a proposed rule change entitled, “Changes in Branch Office Registration Requirements”, which would eliminate the requirement that FHA-approved mortgagees and lenders register all branch offices conducting FHA business with HUD. Currently, all FHA-approved mortgagees and lenders are required to register any branch office where they originate Title I or II loans or submit applications for mortgage insurance. HUD explained that due to technological advances and remote service delivery, the current requirement is inconsistent with industry practices. The proposed rule, revising 24 CFR 202.5 (k), would grant mortgagees and lenders the option to register and maintain branch offices with HUD thereby allowing such branch offices to be placed on HUD's Lender List Search page.

The proposed rule would make registration fees applicable only to those branch offices registered with HUD. Unregistered branch offices would not be subject to unnecessary registration fees and will not be placed on the HUD Lender List Search page. Comments on the proposed rule were due May 1, 2023.

HUD states that these proposed changes will simplify FHA lender and mortgagee approval processes to align with industry practices and eliminate unnecessary fees for FHA-approved entities.

There is no timeline for an implementation date.