What types of business forms can be FHA approved as a mortgagee or loan correspondent?

A mortgagee seeking approval must be a corporation (including Subchapter S), partnership, other chartered institution, or a permanent organization having succession (typically LLCs who meet some additional criteria) A sole proprietorship is not an acceptable business form for approval as a FHA mortgagee. See paragraph 2-1 in Chapter 2 of the Title II Mortgagee Approval Handbook 4060.1, Rev-2 at: http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4060.1/40601handbookHSGH.doc for additional details. More.

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