HUD Eliminates Branch Registration Requirement

On February 2, 2024, HUD published a final rule eliminating the requirement that FHA lenders and mortgagees register branch offices that conduct FHA business.  The final rule becomes effective on March 4, 2024.  This rule adopted without change the proposed rule published on March 1, 2023.

After the effective date, a lender or mortgagee will have the option to select which offices to register and maintain as branch offices with HUD, and those registered offices will continue to appear on HUD’s Lender List Search page.  Going forward, fees will be based on registered branches, not based on which branch offices are authorized to conduct FHA business.  HUD noted that removing the branch registration requirement will not affect HUD’s monitoring of lenders and mortgagees.  HUD stated that it will continue to maintain oversight and risk management of lenders and mortgagees that remain responsible to FHA for the actions of its branch offices and employees.