source:
  type: guide
  id: hud-4000-1-i-d-net-branching-prohibition
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part I — d. Net Branching
    Prohibition (09/14/2015)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part I — d. Net Branching
    Prohibition (09/14/2015).
  coverage_tier: operative
obligations:
- id: hud-4000-1-i-d-net-branching-prohibition-full
  canonical_id: hud-4000-1-i-d-net-branching-prohibition-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part I — d. Net Branching
    Prohibition (09/14/2015)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part I — d. Net Branching
      Prohibition (09/14/2015)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'd. Net Branching Prohibition (09/14/2015) i. Standard The Mortgagee
      must not engage an existing, legally separate mortgage company or broker to
      function as the Mortgagee’s branch office or DBA name or to conduct FHA activities
      using the Mortgagee’s FHA approval. ii. Exception for Existing Leases In cases
      where a Mortgagee acquires an existing office with the intent of operating it
      as a branch office, and the lease of the acquired office is not transferable
      to the Mortgagee, FHA will allow the Mortgagee to operate the acquired office
      as a branch office until the lease expires upon its own terms, so long as the
      Mortgagee can demonstrate that it has assumed financial liability for the payment
      of the lease. In such cases, the Mortgagee must document and maintain evidence
      that it has assumed financial liability for the payment of the lease and produce
      this documentation to FHA upon request. 5. Supplemental Mortgagee Authorities
      After a Mortgagee is approved, the Mortgagee can apply for additional supplemental
      Mortgagee authorities in accordance with the following requirements. I. DOING
      BUSINESS WITH FHA A. FHA Lenders and Mortgagees (09/20/2021) 5. Supplemental
      Mortgagee Authorities Handbook 4000.1 28 Last Revised: 11/26/2025'
  judgment: false
