Note: The following section of the FHA Single Family Housing Policy Handbook relates to voluntary withdrawal of FHA mortgagee approval. The information below was adapted from the HUD Handbook (4000.1) in September of 2015. For more information on voluntary withdrawal, please refer to the HUD.gov website.
Voluntary Withdrawal of FHA Mortgagee Approval
Effective September 14, 2015
A Mortgagee that does not wish to retain, or that is ineligible to retain, its FHA approval must submit a request for voluntary withdrawal of FHA approval.
The Mortgagee must satisfy all outstanding payable indemnification debts and Mortgage Insurance Premiums (MIP), and transfer the servicing and ownership of any FHA-insured Mortgages in its portfolio to an FHA-approved Mortgagee prior to its request being approved, and the Mortgagee will remain obligated on any outstanding indemnification agreements.
FHA will not honor a Mortgagee’s request to withdraw while there is a pending administrative action or MRB action, or while the Mortgagee has unpaid indemnification claims or unsatisfied settlement agreement obligations owed to HUD.
b. Required Documentation
The Mortgagee must submit a request for voluntary withdrawal in the form of a letter, signed by a Corporate Officer, and submitted through LEAP. If applicable, the request must be submitted within 10 business days of the change in the Mortgagee’s eligibility status.
A Mortgagee whose approval is voluntarily withdrawn may reapply for FHA approval any time after its withdrawal.