Application for Approval: FHA Lender and/or Ginnie Mae Mortgage-Backed Securities Issuer U.S. Department of Housing and Urban Development Federal Housing Administration and Government National Mortgage Association OMB Approval No. 2503-0033 (exp. 09/30/2010) Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. The information requested on this form is required by 24 CFR Part 202 and Sec. 306(g) of the National Housing Act or by HUD Handbooks 4060.1 and 5500.3. The information collected assists FHA and Ginnie Mae in determining which lenders should be approved to participate in the FHA single and multifamily insurance programs and/or the Ginnie Mae Mortgage-Backed Securities Program. It is used to help FHA minimize its risk in insuring singlefamily and multifamily mortgages and Ginnie Mae to minimize its risk. Applicants are not required to respond to this collection of information unless a current OMB approval number is displayed on the form. Privacy Act Statement. Names and Social Security Numbers are requested in order for the Department to obtain positive identification of the applicant’s officers, directors, stockholders and employees who have authority to obligate the applicant. The information requested will be used solely to determine the eligibility of the individuals to participate in the Department’s mortgage insurance programs. The Department is authorized to request this information by Executive Order 9397. The information collected will not be disclosed outside the Department except as required by law. The Social Security Numbers are provided to HUD on a voluntary basis. Failure to provide this information could cause delay in processing of the applications. Instructions for Completing Form HUD-11701 Applicants seeking qualification as a FHA-approved lender/mortgagee or loan correspondent under the Title I and/or Title II programs and/or as an approved issuer with the Government National Mortgage Association (“Ginnie Mae”), must complete the appropriate sections of this form. Qualified applicants may obtain one of the following three types of approval: 1. FHA Approval Only Applicants seeking only FHA approval must complete Sections A, B, and C of this form and provide the supplemental information requested. The application fee is nonrefundable and is $1,000 for Title1, Title II, or for both; there is no additional fee if the applicant is already approved for one program. The application and fee must be sent to the appropriate address shown below. 2. Ginnie Mae Approval Only Applicants seeking only Ginnie Mae approval must complete Sections A, B, D or E, and F of this form and provide the supplemental information requested. A nonrefundable application fee of $250, made payable to Ginnie Mae via pay.gov, payment is required at the time of application. The fee is to be sent directly to Ginnie Mae’s Office of Finance via pay.gov while the application package itself must be sent via overnight delivery to the appropriate address shown below. 3. FHA and Ginnie Mae Approval Applicants seeking both FHA and Ginnie Mae approval must complete Sections A, B, C, D or E, and F of this form and provide the supplemental information requested. Separate fees are to be paid for each program as specified above. The application and fee must be sent to both FHA and Ginnie Mae at the appropriate addresses shown below. 4. Conversion of FHA Status An applicant already approved for Title I or Title II and wishing to convert its status must complete Section A and each changed item in Section C. If there are no changes regarding officers or owners, item 11 in Section A may be omitted. The applicant must submit the application together with the supplemental information to the appropriate address shown below. The nonrefundable conversion fee is $300 for Title I, Title II, or Title I and Title II at the same time and must be sent to the appropriate address shown below. Addresses for Submission of Application and Fee: Applications for FHA approval only, sent by U.S. Mail: U.S. Department of Housing and Urban Development Lender Approval & Recertification Division Rm B133 / P3214 th 451 7 Street, SW Washington, D.C. 20410-8888 Fee for FHA Title I approval or conversion: U.S. Department of Housing and Urban Development P. O. Box 198608 Atlanta, GA 30384 Fee for FHA Title II approval or conversion, or fee for FHA Title I and Title II approval or conversion: U.S. Department of Housing and Urban Development P. O. Box 198619 Atlanta, GA 30384 Applications for FHA approval only, sent by delivery service: U.S. Department of Housing and Urban Development Lender Approval & Recertification Division Suite 3214 490 L’Enfant Plaza East, SW Washington, D.C. 20024-2118 Applications for Ginnie Mae approval only, sent by overnight delivery: Government National Mortgage Association Attn: Mortgage-Backed Securities th rd 550 12 Street SW, 3 floor Washington, D.C. 20024 Previous editions are obsolete. Replaces HUD-92001, 92001-D and LD Page i form HUD-11701 (11/2008) ref. Handbooks 5500.3, Rev. 1 and 4060.1 American LegalNet, Inc. www.FormsWorkflow.com Supplemental Information to be Submitted to Obtain FHA Title I and/or FHA Title II Approval. Conversion to Loan Correspondent Conversion to Full Lender Governmental Institution Investing Mortgagee Non-supervised Loan Correspondent Supervised Loan Correspondent Non-supervised Mortgagee Supervised Mortgagee Conversion to Loan Correspondent Conversion to Full Lender FHA Title II Governmental Institution Investing Lender Non-supervised Loan Correspondent Supervised Loan Correspondent Non-supervised Lender FHA Title I Supervised Lender Supplemental Information required to be submitted with form HUD-11701, for verifying that an applicant meets FHA Title I and/or Title II requirements for lender approval, varies depending on the type of institution making application. To determine what additional information is required, determine what classification type the institution falls under (i.e., Supervised Lender, Non-Supervised Lender, Loan Correspondent, Investing Lender, or Governmental Institution). The criteria used in determining an institution’s classification are the same for both Title I and Title II approvals. Title I lender status is covered in HUD Handbook 4700.2. Title II lender status is covered in HUD Handbook 4060.1. After determining its classification type, provide the information listed under the appropriate classification type. Check the appropriate boxes to indicate that the required documents have been included with the application package. 1. Sponsor Cover Letter 2. Wire Transfer Fee Confirmation 3. Application Form 4. Credit Reports 5. Resumes 6. Financial Statements 7. Licenses 8. State DBA Approval (if using) 9. Facilities Evidence 10a. Fidelity Bond 10b. E & O Insurance 11. Quality Control Plan 12. Funding Program 13. Sanctions Letter Supplemental information required to be submitted with form HUD-11701 for verifying that an applicant meets Ginnie Mae requirements for issuer approval. For additional information on the Ginnie Mae I and II programs see Handbook 5500.3. All applicants will be approved to issue Ginnie Mae I and II single-family securities; however, in order to securitize Ginnie Mae II pools or loan packages, applicants must also execute form HUD-11709, Master Agreement for Servicer’s Principal and Interest Custodial Account, and form HUD-11709, Master Agreement for Servicer’s Principal and Interest Custodial Account, and form HUD-11709-A, ACH Debit Authorization. Check the appropriate box to indicate that each required document has been included with the application package. Ginnie Mae Supplemental Information to be Submitted to Obtain Ginnie Mae Approval 1. Evidence of payment to Ginnie Mae for Nonrefundable application fee ($250) 2. HUD Form 11702 3. Certificate of Insurance – Fidelity Bond reflecting adequate coverage and proper Ginnie Mae loss payee endorsement 4. Certificate of Insurance – Errors and Omissions reflecting adequate coverage and proper Ginnie Mae loss payee endorsement 5. Evidence of Quality Control Plan for underwriting, origination, and servicing of mortgage loans and secondary marketing. Provide a copy of quality control findings for the past six months and management’s response to those findings. 6. Audited Financial Statements for latest three years (2 copies) 7. Most recent interim financial statement (balance sheet and income statement) signed by an officer as true and correct 8. Dollar value of loans to officers/directors/affiliates as of most recent financial audit 9. Dollar value of pledged assets as of the most recent financial audit 10. List of affiliated issuer(s) participating in the Ginnie Mae program, along with their four-digit Ginnie Mae issuer identification number(s) 11. List name(s), address(es), telephone number(s), and contact person(s) for mortgage insurance companies, warehouse lenders, and investors for whom the applicant is currently doing business 12. HUD Form 11709 13. HUD Form 11709-A Previous editions are obsolete Replaces HUD-92001, 92001-D and LD Page ii form HUD-11701 (11/2008) ref. Handbooks 5500.3, Rev. 1 and 4060.1 American LegalNet, Inc. www.FormsWorkflow.com U.S. Department of Housing and Urban Development Federal Housing Administration and Government National Mortgage Association Application for Approval FHA Lender and/or Ginnie Mae Mortgage-Backed Securities Issuer OMB Approval No. 2503-0033 (Exp. 09/30/2010) All Applicants are required to complete Sections A and B. Use this form as a cover sheet for your submission. Section A. General Information 1a. Corporate Name 2a. Phone (include area code and extension) Ext. 2b. FAX (include area code) 1b. DBA (if applicable) 2c. E-mail 3. Geographic Address of Home Office (must be physical address) Attention (Use a title, not an individual’s name) 5a. Contact Person for this application Street Address 5b. Contact Phone Number and extension for this application City State Zip Code Ext. 6a. Contact FAX Number and area code for this application County 6b. Contact E-Mail Address for this application 4. Mailing Address Check if same as Geographic Attention (Use a title, not an individual’s name) 7. Date of Charter Street Address/ P.O. Box 8. Under Laws of the State of (if applicable) City State Zip Code 9. Program Approval(s) Requested 10. Minority/Women-Owned Business (Optional) FHA Title I (Property Improvement Loans/Manufactured Housing Loans) FHA Title I Conversion Minority-Owned FHA Title II (Mortgage Loans) FHA Multifamily FHA Title II Conversion Women-Owned Ginnie Mae Single-Family Ginnie Mae Multifamily 11. Institution Type Minority-Owned/Women-Owned 12. Applicant Taxpayer Identifying Number Credit Union Bank Savings Bank 13. Fiscal Year End (9 digits) (month) Savings and Loan Mortgage Co./Finance Co. 14. All Applicants must provide the information below for all officers, along with owners having a 25% or greater ownership interest in the applicant. If additional space is needed, use a separate sheet. Please indicate which officer is in charge of the day-to-day operations of the applicant by checking the box provided. Officer/Owner Name Title (if applicable) Social Security Number % Ownership Previous editions are obsolete. Replaces HUD-92001, 92001-D and LD Page 1 of 3 form HUD-11701 (11/2008) ref. Handbooks 5500.3, Rev. 1 and 4060.1 American LegalNet, Inc. www.FormsWorkflow.com Section B. History and Business Status Please check the appropriate answer for each question below. If any of the questions require a “Yes” answer, provide an explanation on a separate sheet. Yes No Yes No 1. Is the applicant the subject of any assessments or contingent liabilities not disclosed in its financial statements? 2. Has the applicant or any of its principals, officers, individuals serving on the Board of Directors, or individuals acting as authorized signatories, ever been, or are any presently suspended, terminated, debarred, sanctioned, fined, convicted, denied approval, or refused a license by any Federal, State, or local government agency, or a government-related entity, where the action is related to the responsibilities that are commensurate with those of the financial services industry? 3. Is the applicant or any of its principals, officers, individuals serving on its Board of Directors, individuals acting as authorized signatories, or employees currently involved in a proceeding or subject to an investigation that could result, or has resulted, in suspension, fine, or disbarment by a Federal, State, or local government agency, conviction in a criminal matter, bankruptcy or denial of fidelity insurance or mortgagee’s errors and omissions insurance coverage? 4. Have any mortgage insurance companies, secondary marketing agencies or warehouse lenders, or broker/dealers denied the applicant approval in the three previous fiscal years being reported? Provide the date and reasons for each denial. 5. Has the applicant been subject to any past or present action by HUD, VA, Fannie Mae, Freddie Mac, or other government-related entity to indemnify the entity against loss? 6. Is the applicant currently subject to regulatory or supervisory action by any regulatory agency? Regulatory actions include, but are not limited to, supervisory agreements, cease and desist orders, notices of determination, memoranda of understanding, unresolved audits, and investigations. Supervisory actions include, but are not limited to, the appointment of a trustee, conservator, or managing agent. 7. Has the applicant or any owner, principal, or managing executive been involved, through ownership or otherwise, with a previously defaulted Ginnie Mae issuer(s)? Section C: FHA Title I and Title II only Title I and Title II 1. Premium Address Check if same as: Geographic Attention (Use a title, not an individual’s name) 5. Lender/Mortgagee Type Mailing Government 6. Institution Type Federal State Local Street Address/ P.O. Box Supervised * (not Loan Correspondent) City State Zip Code Credit Union Bank Savings Bank Savings & Loan Title I and Title II 2. Payee Address Must be completed for all FHA applications Attention (Use a title, not an individual’s name) Non-supervised (not Loan Correspondent) Street Address/ P.O. Box (Supervised/Non-supervised) Loan Correspondent City State Zip Code Investing Mortgagee 3. CHUMS Address Check if same as: Geographic Mailing Premium Payee Service Provider Street Address/ P.O. Box Service Provider Servicing Agent City 4. Endorsement Address Check if same as: State Geographic Mailing 5. Lender/Mortgagee Type Code (HUD use) Zip Code Premium Payee CHUMS Attention (Use a title, not an individual’s name) Street Address/ P.O. Box State Zip Code 9. Applicant Taxpayer Identifying Number (9 digits) Originate 8. Sponsor Home Office Lender/Mortgagee ID 10. Origination/Service (10 digits) Service City Title I Property Improvement Manufactured Housing Title II 1-4 Family Mortgages Multifamily Mortgages Replaces HUD-92001, 92001-D and LD Page 2 of 3 (HUD use) Supervised Only Title II only Mortgage Co./ Finance Co. Supervised Loan Correspondent * For-Profit Not-for-Profit Reserved Attention (Use a title, not an individual’s name) Title II only Insurance Company Mortgage Co./ Finance Co. 6. Institution Type (HUD use) 7. Examined * 7. Examined and Supervised Federal Reserve System and SuperFederal Deposit Insurance Corp. vised Code Office of Thrift Supervision (HUD use) National Credit Union Admin. Other (specify) 11. Fiscal Year End (month) 12. Financial Statement Date (HUD use) 13a. Title I Home Office Lender ID, if prior approval (10 digits) 13b. Title II Home Office Mortgagee ID, if prior approval (10 digits) form HUD-11701 (11/2008) ref. Handbooks 5500.3, Rev. 1 and 4060.1 American LegalNet, Inc. www.FormsWorkflow.com FHA Certification The undersigned agrees to comply with the provisions of the HUD regulations and the requirements of the Secretary of HUD. I certify that I am authorized to execute this application on behalf of the applicant. Section D. Ginnie Mae Applicants (Fannie Mae and/or Freddie Mac Approved) 1. FHA Mortgagee Number (if applicable) 2. Fannie Mae Seller/Servicer Number(s) For those applicants applying for approval in Ginnie Mae’s multifamily program, provide eligibility certification of multifamily approval by Fannie Mae and/or Freddie Mac. 7. 4. On a separate sheet, please provide a description of any restrictions on the applicant’s activities that have been imposed by Fannie Mae and/or Freddie Mac. Please also provide a copy of the applicant’s annual eligibility certification report and the most recent compliance report from Fannie Mae and/or Freddie Mac. 6. 3. 5. For those applicants who are not approved for Fannie Mae’s and/or Freddie Mac’s multifamily program, provide two resumes showing the relevant experience in multifamily origination and servicing for the past ten years. FHLMC Seller/Servicer Number(s) Total Dollar Amount of Mortgage Servicing Portfolio (Servicing) (Sub-servicing) $ $ Section E. Ginnie Mae Applicants (No Fannie Mae or Freddie Mac Approval) 1. FHA Mortgagee Number: (If applicable) 2. On a separate sheet, please provide a brief description of the applicant’s history. Please include operating and business plans. On a separate sheet, please provide the following: Mortgage loan operations and volume of originations segregated by loan type (i.e., conventional, FHA/VA, RHS) during the last three years for single-family residential and multifamily loans. On a separate sheet, please list investors, number of loans and dollar amount for whom the applicant services mortgages (subservicing is to be identified and broken out separately using the same format). 3. 4. 5. On a separate sheet, please list investors to whom the applicant sells mortgages. 6. On a separate sheet, please list at least four resumes (minimum of three full-time officers and one full-time employee) for the key officers and employees of the applicant. The resume must show the employee’s name, Social Security Number, date of birth, and the relevant experience pertaining to the mortgage banking industry. Please include each employee’s employment history for the past ten years by name of the employer, date, title, supervisor, and a brief description of the duties, responsibilities, and accomplishments. Each resume must also include an original signature and date. Section F. Ginnie Mae Certifications (All Ginnie Mae Applicants) 1. 2. 3. The financial statements submitted to Ginnie Mae are complete and accurate statements of the applicant's financial condition. I certify that all of the information I have provided on this form and in any accompanying documentation is true and accurate to the best of my knowledge and belief. I understand that if I knowingly have made any false, fictitious, or fraudulent statement, representation, or certification on this form or on any accompanying documents, I may be subject to civil and criminal penalties, including fines and/or imprisonment, under applicable federal law, including but not limited to 18 U.S.C. §§1001, 1010, and 1012, and 31 U.S.C. §§3729 and 3802. Each applicant warrants that while the application is pending action by Ginnie Mae, the applicant will notify Ginnie Mae in writing of a change in any material factor that could affect the application decision. 4. Agreements: The undersigned applicant by submitting this application agrees to issue and administer Ginnie Mae mortgagebacked securities and service pooled mortgages in accordance with Section 306(g) of the National Housing Act, its applicable regulations; and the applicable “Government National Mortgage Association Mortgage-Backed Securities Guide” (Ginnie Mae I: Ginnie Mae II: Handbook 5500.3). 5. HMBS Program Only: Applicants who intend to issue HMBS must provide additional documentation to Ginnie Mae to demonstrate the following: a) Net Worth Requirement of $1,000,000 b) Servicing of HECM loans and/or ability to track and monitor Participation accounting. All Applicants are required to sign and date the application. Applicant Date Signature (must be original) Name (printed or typed) Title (must be President, Vice President, Partner, or Managing Member) Approved (HUD Use Only) Title I ID Number U.S. Department of Housing and Urban Development, Director, Office of Lender Activities and Program Compliance By: (Signature of Director, Lender Approval and Recertification Division) Title II ID Number Date Replaces HUD-92001, 92001-D and LD Page 3 of 3 form HUD-11701 (11/2008) ref. Handbooks 5500.3, Rev. 1 and 4060.1 American LegalNet, Inc. www.FormsWorkflow.com