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Question: Is HUD no longer requiring branch office registrations to conduct FHA business?

Answer:

Yes, effective March 4, 2024, HUD will be eliminating the current requirement for mortgagees and lenders to register branch offices where they conduct FHA Title I and/or Title II loan originations. HUD explained that as the mortgage industry has evolved, it believes that requiring a mortgagee or lender to register all branches is an unnecessary administrative and cost impediment to program participation.

This final rule, Changes in Branch Office Registration Requirements, published in the Federal Register on February 2, 2024, revises 24 CFR 202.5(k) to give mortgagees and lenders the option to register all branch offices; and  makes fees applicable only to branch offices that mortgagees or lenders register, rather than applying fees to each branch authorized to originate FHA loans.  Branch offices not registered with HUD are not subject to branch registration fees and will be excluded from the HUD Lender List Search page.  

Removing the requirement to register branch offices will not affect HUD’s monitoring of lenders and mortgagees. HUD will continue to maintain oversight and risk management of lenders and mortgagees that remain responsible to FHA for the actions of its branch offices and employees.