FHA Proposes Elimination of Full-Time Direct Endorsement Underwriter Requirements

FHA recently proposed a draft Mortgagee Letter (DML) that would allow FHA-approved mortgagees to employ part-time Direct Endorsement (DE) underwriters.  The DML also removes the requirement that minimum eligibility experience must be met by full-time work. Currently, FHA-approved mortgagees must employ a full-time DE underwriter that meets full-time experience requirements. 

Other DE underwriter eligibility requirements remain the same, including that the DE underwriter can only be employed by one mortgagee at a time.

If finalized, the DML would apply to forward mortgage and Home Equity Conversion Mortgage programs.  Any feedback on this proposal must be submitted by November 25, 2024.