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b. Nonsupervised Mortgagee (03/14/2016)
i. Definition
A Nonsupervised Mortgagee is a lending institution that has as its principal activity the lending or investing of funds in real estate Mortgages, consumer installment notes or similar advances of credit, the purchase of consumer installment contracts, or from a directly related field. A directly related field is something directly related to the lending or investing of funds in real estate Mortgages, not simply actions relating to real estate in general.
ii. Standard
A Nonsupervised Mortgagee must meet the general approval requirements set forth below and:
• meet FHA’s principal activity requirement by deriving at least 50 percent of its gross revenue from:
o its activities in lending or investing of funds in real estate Mortgages;
o consumer installment notes or similar advances of credit;
o the purchase of consumer installment contracts; or
o a directly related field;
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I. DOING BUSINESS WITH FHA A. FHA Lenders and Mortgagees (09/20/2021)
2. Types of Approved Mortgagees
• have an acceptable Business Form;
• demonstrate Creditworthiness; and
• have an acceptable Funding Program.
iii. Activities Authorized
A Nonsupervised Mortgagee may originate, underwrite, close, endorse, service, purchase, hold, or sell FHA-insured Mortgages.