Form HUD 11701 HUD 11701 Application for Approval FHA Lender and/or Ginnie Mae Mo

Application for Approval FHA Lender and/or Ginnie Mae Mortgage-Backed Securities Issuer	U.S. Department of Housing and Urban Development Federal Housing Administration and Government National Mortgage Association		OMB Approval Numbers 2502-0005 (exp. 03/31/2009)
Public Reporting Burden for this collection of information is estimated to average 1.25 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. The information requested on this form is required by 24 CFR Part 202 and Sec. 306(g) of the National Housing Act or by HUD Handbooks 4060.1 and 5500.3. The information collected assists FHA and Ginnie Mae in determining which lenders should be approved to participate in the FHA single family and multifamily insurance programs and/or the Ginnie Mae Mortgage Backed Securities Program. It is used to help FHA minimize its risk in insuring single family and multifamily mortgages and Ginnie Mae to minimize its risk. Applicants are not required to respond to this collection of information unless a currently valid approved OMB control number is displayed on the form. Privacy Act Statement. Names and Social Security Numbers are requested in order for the Department to obtain positive identification of the applicant’s officers, directors, stockholders and employees who have authority to obligate the applicant. The information requested will be used solely to determine the eligibility of the individuals to participate in the Department’s mortgage insurance programs. The Department is authorized to request this information by Executive Order 9397 and it will not be disclosed outside the Department without prior consent except as required or permitted by law. The Social Security Numbers are provided to HUD on a voluntary basis. Failure to provide this information could cause delay in processing of the applications.
Instructions for Completing Form HUD-11701 Applicants seeking qualification as a FHA-approved lender/mortgagee or loan correspondent under the Title I and/or Title II programs and/or as an approved issuer with the Government National Mortgage Association (“Ginnie Mae”) must complete the appropriate sections of this form and submit the required supplemental information listed in these instructions. Qualified applicants may obtain one of the following types of approval: 1. FHA Approval Only Applicants seeking only FHA approval must complete Sections A, B, and C of this form and provide the supplemental information as detailed on page ii of these instructions for the different types of approval. The application fee is nonfundable and is $1,000, for Title I, Title II, or for both; there is not additional fee if the applicant is already approved for one program. The application and fee must be sent to the appropriate address shown below. Applicants must request Title I approval in order to participate in the FHA Title I loan programs (property Improvement and manufactured home loans). For more information on the Title I lender approval requirements, reference Title I Lender Approval Handbook 4700.2. Applicants must request Title II lender approval to participate in the regular FHA single family (1-4 family and multifamily) loan programs. For more information on the Title II lender approval requirements, reference the Title II Mortgagee Approval Handbook 4060.1. 2. Ginnie Mae Approval Only Applicants seeking only Ginnie Mae approval must complete Sections A, B, D or E, and F of this form and provide the supplemental information requested. A nonrefundable application fee of $250 made payable to Ginnie Mae is required at the time of making the application. The fee is to be included with the application package. The application and fee must be sent to the appropriate address shown below. 3. FHA and Ginnie Mae Approval Applicants seeking both FHA and Ginnie Mae approval must complete Sections A, B, C, D or E, and F of this form and provide the supplemental information requested. Separate fees are to be paid for each program as specified above. The application and fee must be sent to both FHA and Ginnie Mae at the appropriate addresses shown below. 4. Conversion of Existing FHA Approval Type An applicant already approved for Title I or Title II and wishing to convert its approval type must complete Section A and each changed item in Section C. If there are no changes regarding officers or owners, item 11 in Section A may be omitted. The applicant must submit the application together with the supplemental information listed on page ii of these instructions to the appropriate address below. The nonrefundable conversion fee is $300 for Title I Title II or Title I and Title II at the same time and must be submitted to the HUD lockbox appropriate address stated on page ii. See paragraph 6-16 in HUD Handbook 4060.1 for more information on conversion requests.
Previous editions obsolete
Replaces HUD-92001, 92001-D and LD	Page i	form HUD-11701 (09/14/2007) ref Handbooks 5500.3, 4060.1 and 4700.2

Addresses for Submission of FHA Application for Approval or Conversion	Lockbox Address for FHA Application Fee
U.S. Mail HUD Lender Approval & Recertification Division 451 7th Street, SW Rm B133 / P3214 Washington, D.C. 20410-8888 Overnight delivery HUD Lender Approval & Recertification Division 490 L'Enfant Plaza East, SW Suite 3214 Washington, D.C. 20024-2118	Title I Fees: HUD P.O. Box 198608 Atlanta, GA 30384 Title II Fees: HUD P. O. Box 198619 Atlanta, GA 30384 (to avoid delays, do not send application to lockbox)
Addresses for Submission of Ginnie Mae Application and Fee:
U.S. Mail Ginnie Mae 451 7th Street, SW, Room B-133 Washington, D.C. 20410-9000	Overnight delivery Ginnie Mae 550 12th Street, SW, Third Floor Washington, DC 20024

Supplemental Information to be Submitted With the 11701 Form to Obtain FHA Title I and/or FHA Title II Approval.

Supplemental information required to be submitted with form HUD-11701, for verifying that an applicant meets FHA Title I and/or Title II requirements for lender approval, varies depending on the type of approval requested. Title I lender approval requirements are covered in HUD Handbook 4700.2. Title II lender approval requirements are in HUD Handbook 4060.1. The paragraph numbers listed under each supplement item refer to the paragraphs in the HUD Handbook 4060.1. After determining the approval type, provide the information listed indicated by the check marks below.

FHA Title I

FHA Title II

Supervised Lender

Non-supervised Lender

Supervised Loan Correspondent

Non-supervised Loan Correspondent

Investing Lender

Governmental Institution

Conversion to Full Lender

Conversion to Loan Correspondent

Supervised Lender

Non-supervised Lender

Supervised Loan Correspondent

Non-supervised Loan Correspondent

Investing Lender

Governmental Institution

Conversion to Full Lender

Conversion to Loan Correspondent

1.

Sponsor Cover Letter Paragraphs 3-2(A)1 and 3-2(A)13

2.

Copy of Application Fee Check Paragraph 2-7.

3.

Credit Reports Paragraphs 3-2(A)4

4.

Resumes Paragraph 3-2(A)5

5.

Financial statements Paragraphs 2-5, 2-6 and 3-2(A)6

6.

Licenses Paragraphs 2-3 and 3-2(A)7

7.

State DBA approval (if using) Paragraphs 2-4 and 3-2(A)8

8.

Evidence of Office Facilities Paragraphs 2-11(A) and 3-2(A)9

9.

Fidelity bond Paragraph 3-2(A)10

10.

E & O insurance Paragraph 3-2(A)11

11.

Quality Control Plan Paragraphs 7-1 through 7-12

12.

Funding program Paragraphs 3-2(A)13a & 3-2(A)13b

13.

Sanctions letter Paragraphs 2-10 & 3-2(A)14

Previous editions obsolete

Replaces HUD-92001, 92001-D and LD

Page ii

form HUD-11701 (09/14/2007) ref Handbooks 5500.3, 4060.1 and 4700.2

Supplemental Information to be Submitted to Obtain Ginnie Mae I and/or Ginnie Mae II Approval.
Supplemental information required to be submitted with form HUD-11701 for verifying that an applicant meets Ginnie Mae requirements for issuer approval. For additional information on the Ginnie Mae I and II programs see Handbook 5500.3. All applicants will be approved to issue Ginnie Mae I and II single family securities; however, in order to securitize Ginnie Mae II pools or loan packages, applicants must also execute form HUD-11709, Master Agreement for Servicer's Principal and Interest Custodial Account, and form HUD-11709-A, ACH Debit Authorization.
				Ginnie Mae I	Ginnie Mae II
1.	Nonrefundable application fee of $250
2.	HUD Form 11702
3.	Certificate of Insurance - Fidelity Bond reflecting adequate coverage and proper Ginnie Mae loss payee endorsement
4.	Certificate of Insurance - Errors and Omissions reflecting adequate coverage and proper Ginnie Mae loss payee endorsement
5.	Evidence of Quality Control Plan for underwriting, origination, and servicing of mortgage loans and secondary marketing. Provide a copy of quality control findings for the past six months and management's response to those findings
6.	Audited Financial Statements for latest three years (2 copies)
7.	Most recent interim financial statement (balance sheet and income statement) signed by an officer as true and correct
8.	Dollar value of loans to officers/directors/affiliates as of most recent financial audit
9.	Dollar value of pledged assets as of the most recent financial audit
10.	List of affiliated issuer(s) participating in the Ginnie Mae program, along with their four-digit Ginnie Mae issuer identification number(s)
11.	List name(s), address(es), telephone number(s), and contact person(s) for mortgage insurance companies, warehouse lenders, and investors for whom the applicant is currently doing business
12.	HUD Form 11709
13.	HUD Form 11709-A
Previous editions obsolete
Replaces HUD-92001, 92001-D and LD		Page iii	form HUD-11701 (09/10/2007) ref Handbooks 5500.3,4060.1and 4700.2

Application for Approval FHA Lender and/or Ginnie Mae Mortgage-Backed Securities Issuer		U.S. Department of Housing and Urban Development Federal Housing Administration and Government National Mortgage Association						OMB Approval Numbers 2502-0005 (exp. 03/31/2009)
All Applicants are required to complete Sections A and B. Use this form as a cover sheet for your submission.
Section A. General Information
Applicant’s Business Name      						Phone (includes area code and extension)      
DBA (if applicable)      						FAX (includes area code)      
Geographic Address of Home Office (must be a physical address) Attention (Use a title, not an individual’s name)      						email address of applicant      
Street Address      						Contact person for this application      
City      		State      			Zip Code      	Contact person’s phone number and extension      
County      						Contact person’s FAX number      
Mailing Address Check if same as Geographic Attention (Use a title, not an individual’s name)      						Contact person’s email address      
Street Address/P.O. Box      						Date of Charter      
City      		State      			Zip Code      	Under Laws of the State of (if applicable)      
Program Approval(s) Requested FHA Title I FHA Title I Conversion FHA Title II Single Family FHA Title II Conversion FHA Title II Multifamily Ginnie Mae Single Family Ginnie Mae Multifamily						Minority / Women Owned Business (Optional) Minority Owned Women Owned Minority Owned / Women Owned
Applicant’s Business Type Bank Mortgage Lender Investing Only Credit Union Mortgage Broker Service Provider Savings Bank Government Agency Servicing Agent						Applicant Taxpayer Identifying Number (9 digits)      			Fiscal Year End (month)      
All Applicants must provide the information below for all officers, along with owners having a 25% or greater ownership interest in the applicant. If additional space is needed, use a separate sheet. Please indicate which officer is in charge of the day-to-day operations of the applicant by checking the box provided.
Officer/Owner Name				Title (if applicable)			Social Security Number			% Ownership
	     			     			     			     
	     			     			     			     
	     			     			     			     
	     			     			     			     
	     			     			     			     
	     			     			     			     
	     			     			     			     
	     			     			     			     
Previous editions obsolete
Replaces HUD-92001, 92001-D and LD			Page 1 of 3				form HUD-11701 (09/14/2007) ref Handbooks 5500.3, 4060.1 and 4700.2

Section B. History and Business Status

Please check the appropriate answer for each question below. If any of the questions require a "Yes" answer, provide an explanation on a separate sheet.

Yes No 1. Is the applicant the subject of any assessments, or contingent liabilities not disclosed in its financial statements? 2. Has the applicant or any of its principals, officers, individuals serving on the Board of Directors, or individuals acting as authorized signatories, ever been, or are any presently suspended, terminated, debarred, sanctioned, fined, convicted, denied approval, or refused a license by any Federal, State, or local government agency, or a government-related entity, where the action is related to the responsibilities that are commensurate with those of the financial services industry? 3. Is the applicant or any of it principals, officers, individuals serving on it's Board of Directors, individuals acting as authorized signatories, or employees currently involved in a proceeding or subject to an investigation that could result, or has resulted, in suspension, fine, or disbarment by a Federal, State, or local government agency, conviction in a criminal matter, bankruptcy or denial of fidelity insurance or mortgagee’s errors and omissions insurance coverage?

Yes No 3. Have any mortgage insurance companies, secondary marketing agencies or warehouse lenders, or broker/ dealers denied the applicant approval in the three previous fiscal years being reported? Provide the date and reasons for each denial. 5. Has the applicant been subject to any past or present action by HUD, VA, Fannie Mae, Freddie Mac, or other government-related entity to indemnify the entity against loss? 6. Is the applicant currently subject to regulatory or supervisory action by any regulatory agency? Regulatory actions include, but are not limited to, supervisory agreements, cease and desist orders, notices of determination, memorandum of understanding, unresolved audits, and investigations. Supervisory actions include, but are not limited to, the appointment of a trustee, conservator, or managing agent. 7. Has the applicant or any owner, principal, or managing executive been involved, through ownership or otherwise, with a previously defaulted Ginnie Mae Issuer(s)?

Section C: FHA Title I and Title II only

Mortgagee or Lender Type

Applicant Type

Premium Address Check if same as: Geographic Mailing

Government

Federal State Local

Title I and Title II

Attention (Use a title, not an individual’s name)      

Street Address/P.O. Box      

Supervised Mortgagee or Lender

Bank Credit Union Savings Bank

City:      

State      

Zip Code      

Payee Address Must be completed for all FHA applications

Nonsupervised Mortgagee or Lender

Mortgage Lender

Title I and Title II

Attention (Use a title, not an individual’s name)      

Street Address/P.O. Box      

Loan Correspondent (both Supervised or Nonsupervised)

Mortgage Lender Mortgage Broker Supervised Institution

City:      

State      

Zip Code      

CHUMS Address Check if same as: Geographic Mailing Premium Payee

Investing Mortgagee or Lender

For-Profit Not-for-Profit

Title II only

Attention (Use a title, not an individual’s name)      

Street Address/P.O. Box      

Service Provider

Service Provider Servicing Agent

City:      

State      

Zip Code      

Mortgagee code (HUD use)

Institution code (HUD use)

Endorsement Address Check if same as: Geographic Mailing Premium Payee CHUMS

Supervised Only

Examined and Supervised Federal Reserve System Federal Deposit Insurance Corp. Office of Thrift Supervision National Credit Union Assoc. Other (Specify)      

Examined and super-vised code (HUD use)

Title II only

Attention (Use a title, not an individual’s name)      

Street Address/P.O. Box      

City:      

State      

Zip Code      

Fiscal Year End (month)      

Sponsor Home Office Mortgagee ID (10 digits)      

Originate/Service

Originate

Service

Financial Statement Date (HUD use)

Applicant Taxpayer Identifying Number (9 digits)      

Title I Property Improvement Manufactured Housing Title II 1-4 Family Mortgages Multifamily Mortgages

Title I Home Office Lender ID, if prior approval (10 digits)      

Title II Home Office Lender ID, if prior approval (10 digits)      

Previous editions obsolete

Replaces HUD-92001, 92001-D and LD

Page 2 0f 3

form HUD-11701 (09/14/2007) ref Handbooks 5500.3, 4060.1 and 4700.2

FHA Certification The undersigned agrees to comply with the provisions of the HUD regulations and the requirements of the Secretary of HUD. I certify that I am authorized to execute this application on behalf of the applicant.
Section D. Ginnie Mae I and/or II Applicants (Fannie Mae and/or Freddie Mac Approved)
FHA Mortgagee Number (If applicable)				1. On a separate sheet, please provide a description of any restrictions on the applicant’s activities that have been imposed by Fannie Mae and/or Freddie Mac. Please also provide a copy of the applicant’s annual eligibility certification report and the most recent compliance report from Fannie Mae and/or Freddie Mae 2. For those applicants applying for approval in Ginnie Mae's multifamily program, provide eligibility certification of multifamily approval by Fannie Mae and/or Freddie Mac. 3. For those applicants who are not approved for Fannie Mae's and/or Freddie Mac's multifamily program, provide two resumes showing the relevant experience in multifamily origination and servicing for the past ten years.
     
Fannie Mae Seller/Servicer Number(s)
     
FHLMC Seller/Servicer Number(s)
     
Total Dollar Amount of Mortgage Servicing Portfolio
(Servicing) $      	(Sub-servicing) $      
Section E. Ginnie Mae I and/or II Applicants (No Fannie Mae or Freddie Mac Approval)
FHA Mortgagee Number (If applicable)				4. On a separate sheet, please list Investors to whom the applicant sells mortgages. 5. On a separate sheet, please list at least four resumes (minimum of three full-time officers and one full-time employee) for the key officers and employees of the applicant. The resume must show the employee’s name, Social Security Number, date of birth, and the relevant experience pertaining to the mortgage banking industry. Please include each employee’s employment history for the past ten years by name of the employer, date, title, supervisor, and a brief description of the duties, responsibilities, and accomplishments. Each resume must also include an original signature and date.
     
1. On a separate sheet, please provide a brief description of the applicant’s history. Please include operating and business plans. 2. On a separate sheet, please provide the following: Mortgage loan operations and volume of originations segregated by loan type (i.e., conventional, FHA/VA, RHS) during the last three years for single family residential and multifamily loans. 3. On a separate sheet, please list Investors, number of loans and dollar amount for whom the applicant services mortgages (subservicing is to be identified and broken out separately using the same format).
Section F. Ginnie Mae Certifications (All Ginnie Mae Applicants
1. The financial statements submitted to Ginnie Mae are complete and accurate statements of the applicant’s financial condition. 2. To the best of its knowledge and belief, the information and data contained herein are true and correct. Further, it is the opinion of the undersigned that it has powers and authority sufficient to act as issuer of Ginnie Mae mortgage-backed securities.				3. Each applicant warrants that while the application is pending action by Ginnie Mae, the applicant will notify Ginnie Mae in writing of a change in any material factor that could affect the application decision. 4. Agreements: The undersigned applicant by submitting this application agrees to issue and administer Ginnie Mae mortgage backed securities and service pooled mortgages in accordance with Section 306(g) of the National Housing Act, its applicable regulations; and the applicable “Government National Mortgage Association Mortgage-Backed Securities Guide” (Ginnie Mae I: Ginnie Mae II: Handbook 5500.3).
All Applicants are required to sign and date the application.
Applicant Signature (must be original)					Date      
					Name (printed or typed)      
					Title (must be President, Vice President, Partner, or Managing Member)      
Approved U.S. Department of Housing and Urban Development, Director, Office of Lender Activities and Program Compliance By: (Signature of Director, Lender Approval and Recertification Division)						Title I Number
						Title II Number
						Date
Previous editions obsolete
Replaces HUD-92001, 92001-D and LD		Page 3 0f 3				form HUD-11701 (09/14/2007) ref Handbooks 5500.3, 4060.1 and 4700.2