HUD 11701 Applicaiton for Approval FHA Lender and /or Ginnie Mae M

Application for Approval FHA Lender and/or Ginnie Mae Mortgage-Backed Securities Issuer	U.S. Dept 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 approval as a FHA-approved lender, both mortgagee and 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 documentation 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 required documentation listed on page ii of these instructions for the different types of approval along with a nonrefundable $1,000 application fee. The application fee covers applying for either Title II or Title I approval or for both at the same time. A FHA approved lender who is only Title II or Title I approved does not have to pay an application fee to apply for the other approval. FHA Lender Approval Types 1. Nonsupervised Loan Correspondent: This is the only type of approval a mortgage broker can apply for and allows them to originate Title II single family loans and/or Title I loans. Correspondent lenders and mortgage lenders who only want to originate should apply for this type of approval. 2. Nonsupervised Mortgagee: Correspondent lenders and mortgage lenders should apply for this type of approval if they want to do any of the following lender functions in addition to origination: underwriting, servicing and owning any type of FHA insured loan. 3. Supervised Loan Correspondent: Banks, savings banks and credit unions should apply for this type of approval if they only want to originate Title II single family loans and/or Title I loans. 4. Supervised Mortgagee: Banks, savings banks and credit unions should apply for this type of approval if they want to do any of the following lender functions in addition to origination: underwriting, servicing and owning any type of FHA insured loan. 5. Government Mortgagee: Federal, State and local government agencies should apply for this type of approval if they want to do any of the following lender functions: origination, underwriting, servicing and owning any type of FHA insured loan. 6. Investing Mortgagee: Any entity that only wants to own FHA insured loans should apply for this type of approval. All approval types, except an investing mortgagee, can fund FHA loans. Applicants must apply for Title II lender approval to participate in the FHA single family forward (203b, 203k, 234c, etc.) and reverse (HECM) loan programs and the FHA multifamily loan programs. Applicants must apply for Title I approval to participate in the FHA Title I loan programs (property Improvement and manufactured home loans). Applicants can apply for both Title I and Title II at the same time. Information on the Title II single family loan programs and the Title I loan programs is available at: http://www.hud.gov/offices/hsg/sfh/insured.cfm . Information on Title II multifamily loan programs is at: http://www.hud.gov/offices/hsg/mfh/progdesc/progdesc.cfm. 2. Conversion of Existing FHA Approval Type: A FHA approved Title I and/or Title II mortgagee or loan correspondent who wishes to convert to the other type of lender approval 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) of this form and provide the required documentation listed on page ii of these instructions for the different types of conversions along with a nonrefundable $300 conversion fee.. 3. 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 required documentation listed on page iii of these instructions along with a nonrefundable application fee of $250, made payable to Ginnie Mae via wire transfer only. The fee is to be wired directly to Ginnie Mae’s Office of Finance while the application package itself must be sent to the appropriate address shown below. 4. 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 required documentation listed below. 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.
Previous editions obsolete Replaces HUD-92001, 92001-D and LD	Page i of iii	form HUD-11701 (05/2008) ref Handbooks 5500.3, 4060.1 and 4700.2

Required Documentation for New FHA Lender Approval
The following are the required documentation to be submitted with form HUD-11701 for verifying that an applicant meets FHA requirements for each type of FHA lender approval. References are to paragraphs in the Title II Mortgagee Approval Handbook 4060.1, Rev-2 at: http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/ If only applying for Title I approval, please see the Title I Lender Approval Handbook 4700.2, at: http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/ and Title I Letters TI-469, TI-478 and TI-03-01 at: http://www.hud.gov/offices/adm/hudclips/letters/title1/ Required documentation for each type of approval is check marked.		Nonsupervised Loan Correspondent	Nonsupervised Mortgagee	Supervised Loan Correspondent	Supervised Mortgagee	Government Mortgagee	Investing Mortgagee
1	Copy of $1,000 Application Fee Check Paragraph 2-7.	√	√	√	√		√
2	State License or Registration Paragraphs 2-3 and 3-2(A)7	√	√				√
3	State DBA Approval, if applicable Paragraphs 2-4 and 3-2(A)8	√	√	√	√	√	√
4	Business Credit Report on Applicant Paragraph 3-2(A)4	√	√				√
5	Audited Financial Statements Paragraphs2-5, 2-6 and 3-2(A)6	√	√
6	LLC Documents, if applicable Paragraphs 2-2(C) and 3-3(B)	√	√				√
7	Partnership Agreement, if applicable Paragraphs 2-2(B) and 3-3(A)	√	√				√
8	Evidence of office facilities Paragraphs 2-11(A) and 3-2(A)9	√	√
9	Funding Program Paragraph 3-2(A)13a & 3-2(A)13b		√				√
10	Sanctions Letter Paragraphs 2-10 & 3-2(A)14	√	√				√
11	Quality Control Plan Paragraphs 7-1 through 7-12, as appropriate	√	√	√	√	√
12	Fidelity Bond $300,000 minimum Paragraph 3-2(A)10		√		√	√	√
13	Errors & Omissions Insurance $300,000 minimum Paragraph 3-2(A)11		√		√	√	√
14	Resume(s) Paragraph 3-2(A)5	√	√			√	√
15	Credit Reports on Principals Paragraph 3-2(A)4	√	√				√
16	Combination Sponsor/Funding Letter Paragraphs 3-2(A)1, 3-2(A)13	√		√

Required Documentation for Conversion of Existing FHA Lender Approval
The following are the required documentation to be submitted with form HUD-11701 for verifying that an applicant meets FHA requirements for the conversion being requested. References are to paragraphs in the Title II Mortgagee Approval Handbook 4060.1, Rev-2 available at: http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/ If only applying to convert your Title I approval, please see the Title I Lender Approval Handbook 4700.2, at: http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/ and Title I Letters TI-469, TI-478 and TI-03-01 at: http://www.hud.gov/offices/adm/hudclips/letters/title1/ Required documentation for each type of conversion is check marked.		To Nonsupervised Loan Correspondent	To Nonsupervised Mortgagee	To Supervised Loan Correspondent	To Supervised Mortgagee
1	Copy of $300 Conversion Fee Check Paragraph 2-7.	√	√	√	√
2	Audited Financial Statements Paragraph 6-16(E)		√
3	Funding Program Paragraphs 3-2(A)13a, 3-2(A)13b and 6-16		√
4	Fidelity Bond $300,000 minimum Paragraphs 3-2(A)10 & 6-16		√		√
5	Errors & Omissions Insurance $300,000 minimum Paragraphs 3-2(A)11 & 6-16		√		√
6	Combination Sponsor/Funding Letter Paragraphs 3-2(A)1, 3-2(A)13 and 6-16	√		√
7	Certification that all FHA Insured Mortgages held or serviced have been transferred to a FHA mortgagee that is approved to hold and service FHA insured mortgages Paragraph 6-16	√		√

Previous editions obsolete Replaces HUD-92001, 92001-D and LD

Page ii of iii

form HUD-11701 (05/2008) ref Handbooks 5500.3, 4060.1 and 4700.2

Required Documentation for Ginnie Mae I and/or Ginnie Mae II Approval.

The following are the required documentation 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, Master Agreement for Servicer’s Principal and Interest Custodial Account, and form HUD-11709-A, ACH Debit Authorization.

Required documentation for each type of approval is check marked.

Ginnie Mae I

Ginnie Mae II

1.

Evidence of Wire Transfer to Ginnie Mae for Nonrefundable application fee ($250)

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2.

HUD Form 11702

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3.

Certificate of Insurance - Fidelity Bond reflecting adequate coverage and proper Ginnie Mae loss payee endorsement

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4.

Certificate of Insurance - Errors and Omissions reflecting adequate coverage and proper Ginnie Mae loss payee endorsement

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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

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6.

Audited Financial Statements for latest three years (2 copies)

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7.

Most recent interim financial statement (balance sheet and income statement) signed by an officer as true and correct

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8.

Dollar value of loans to officers/directors/affiliates as of most recent financial audit

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9.

Dollar value of pledged assets as of the most recent financial audit

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10.

List of affiliated issuer(s) participating in the Ginnie Mae program, along with their four-digit Ginnie Mae issuer identification number(s)

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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

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12.

HUD Form 11709

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13.

HUD Form 11709-A

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Addresses for Submission of Application for FHA Lender Approval or Application for Conversion of Existing FHA Lender Approval	Lockbox Addresses for FHA Application Fee and Fee Cover Sheet
U.S. Mail FHA Lender Approval & Recertification Division 451 7th Street, SW, Rm B133 / P3214 Washington, D.C. 20410-8888 Overnight delivery FHA Lender Approval & Recertification Division 490 L'Enfant Plaza East, SW, Suite 3214 Washington, D.C. 20024-2118	Title II Fee: HUD P.O. Box 198619 Atlanta, GA 30384 Fee Cover Sheet: http://www.hud.gov/offices/adm/hudclips/forms/files/11701a.doc Title I Fee: HUD P. O. Box 198608 Atlanta, GA 30384 Fee Cover Sheet: http://www.hud.gov/offices/adm/hudclips/forms/files/11701b.doc If applying for both, sent the fee to the Title II 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

Previous editions obsolete

Replaces HUD-92001, 92001-D and LD

Page iii of iii

form HUD-11701 (05/2008)

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.
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 Incorporated, Established or Chartered      
City      		State      			Zip Code      	Under Laws of the State of (if applicable)      
Program Approval(s) Requested FHA Title II Single Family FHA Title II Conversion FHA Title II Multifamily FHA Title I Conversion FHA Title I 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 Broker Investing Only Savings Bank Correspondent Lender Service Provider Credit Union Mortgage Lender Servicing Agent Government Agency						Applicant Taxpayer Identifying Number (9 digits)       Non-Profit (Yes or No)      			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 one officer will be in charge of the day-to-day operations of the applicant’s FHA business by checking the box in from of one name.
Officer/Owner Name				Title (if applicable)			SSN or TIN			% Ownership
	     			     			     			     
	     			     			     			     
	     			     			     			     
	     			     			     			     
	     			     			     			     
	     			     			     			     
	     			     			     			     
	     			     			     			     
Previous editions obsolete
Replaces HUD-92001, 92001-D and LD			Page 1 of 3				form HUD-11701 (05/2008) 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

Approval Type

Applicant Type

Premium Address Check if same as: Geographic Mailing

Nonsupervised Loan Correspondent

Mortgage Broker Correspondent Lender Mortgage Lender

Title I & Title II

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

Street Address/P.O. Box      

Nonsupervised Mortgagee

Correspondent Lender Mortgage Lender

City:      

State:      

Zip Code:      

Payee Address Check if same as: Geographic Mailing Premium

Supervised Loan Correspondent

Bank Credit Union Savings Bank

Title I & Title II

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

Street Address/P.O. Box      

Supervised Mortgagee

Bank Credit Union Savings Bank

City:      

State:      

Zip Code:      

Government Mortgagee

Federal State Local

CHUMS Address Check if same as: Geographic Mailing Premium Payee

Title II only

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

Investing Mortgagee

For-Profit Not-for-Profit

Street Address/P.O. Box      

Mortgagee code (HUD use)

Institution code (HUD use)

City:      

State:      

Zip Code:      

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 Supervised code (HUD use)

Title II only

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

Street Address/P.O. Box      

City:      

State:      

Zip Code:      

Title II Sponsor Home Office Mortgagee ID (10 digits)      

Participate in the following FHA loan programs

Originate

Service

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

Title II Single Family Loans

Title I Sponsor Home Office Mortgagee ID (10 digits)      

Title II Multifamily Loans

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

Title I Loans

Previous editions obsolete Replaces HUD-92001, 92001-D and LD

Page 2 of 3

form HUD-11701 (05/2008) ref Handbooks 5500.3, 4060.1 and 4700.2

Section D. Ginnie Mae I and/or II Applicants (Fannie Mae and/or Freddie Mac Approved)
1. FHA Mortgagee Number (If applicable)				5. 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 Mac. 6. 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. 7. 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. .
     
2. Fannie Mae Seller/Servicer Number(s)
     
3. FHLMC Seller/Servicer Number(s)
     
4. 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)
1. FHA Mortgagee Number (If applicable)				5. On a separate sheet, please list Investors to whom the applicant sells mortgages. 6. 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.
     
2. On a separate sheet, please provide a brief description of the applicant’s history. Please include operating and business plans. 3. 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. 4. 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 an 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). 5. HMBS Program Only: Applicants who intend to issue HMBS must provide additional documentation to Ginnie Mae to demonstrate the following: a) Net Worth Requirement of $500,000 b) Servicing of HECM loans and/or ability to track and monitor Participation accounting.
All Applicants are required to sign and date the application. 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.
Applicant Signature					Date:      
					Name:      
					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 II Number:
						Title I Number:
						Date
Previous editions obsolete Replaces HUD-92001, 92001-D and LD		Page 3 of 3				form HUD-11701 (05//2008) ref Handbooks 5500.3, 4060.1 and 4700.2