source:
  type: guide
  id: hud-4000-1-i-r-mergers-acquisitions-and-reorganizations
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part I — r. Mergers,
    Acquisitions, and Reorganizations (04/10/2025)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part I — r. Mergers,
    Acquisitions, and Reorganizations (04/10/2025).
  coverage_tier: operative
obligations:
- id: hud-4000-1-i-r-mergers-acquisitions-and-reorganizations-full
  canonical_id: hud-4000-1-i-r-mergers-acquisitions-and-reorganizations-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part I — r. Mergers,
    Acquisitions, and Reorganizations (04/10/2025)
  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 — r. Mergers,
      Acquisitions, and Reorganizations (04/10/2025)
    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: 'r. Mergers, Acquisitions, and Reorganizations (04/10/2025) i.
      Merger or Consolidation FHA’s treatment of an FHA-approved Mortgagee for approval
      purposes following a merger will depend on the prior approval status of the
      surviving entity. I. DOING BUSINESS WITH FHA A. FHA Lenders and Mortgagees (09/20/2021)
      7. Post-approval Changes Handbook 4000.1 63 Last Revised: 11/26/2025 (A) Duties
      of a Non-surviving FHA-Approved Mortgagee (1) Standard A non-surviving FHA-approved
      Mortgagee that holds a portfolio of FHA-insured Mortgages must transfer those
      Mortgages to a Mortgagee approved by FHA to service FHA Mortgages. If a surviving
      FHA-approved Mortgagee acquires all of the non-surviving FHA- approved Mortgagee’s
      outstanding FHA Mortgages, all of these Mortgages will be transferred in FHA
      systems to the surviving entity when the merger is processed. A non-surviving
      Mortgagee remains responsible for the payment of insurance premiums and compliance
      with all other obligations associated with the FHA Mortgages until the Mortgages
      are transferred and the mortgage record changes are reported accurately to HUD
      through FHAC, Electronic Data Interchange (EDI), or Business to Government (B2G).
      Once the non-surviving Mortgagee ceases to exist or its approval is terminated,
      whichever comes first, the non-surviving Mortgagee must not: • accept any new
      applications for FHA Mortgages; • hold FHA Mortgages; • service FHA Mortgages;
      or • submit claims to HUD. (B) Duties of a Surviving Entity (1) FHA-Approved
      Mortgagee That Survives a Merger with a Non-approved Entity (a) Standard An
      FHA-approved Mortgagee that is the surviving entity in a merger with a non-approved
      entity must notify FHA of the merger. The surviving FHA-approved Mortgagee may
      register each of the non- surviving entity’s branch offices that will remain
      open under the auspices of the surviving Mortgagee and pay the branch office
      registration fee(s) for the branch office(s) it chooses to register. (b) Required
      Documentation An FHA-approved Mortgagee that is the surviving entity in a merger
      with a non-approved entity must submit a Change Request to FHA containing the
      following: I. DOING BUSINESS WITH FHA A. FHA Lenders and Mortgagees (09/20/2021)
      7. Post-approval Changes Handbook 4000.1 64 Last Revised: 11/26/2025 • a letter,
      signed by a Corporate Officer, that informs FHA of the merger. The letter must
      include information that: o provides the FHA Lender IDs for the surviving FHA-approved
      Mortgagee involved in the merger; and o provides the date the merger occurred
      or will occur; • a copy of the legal document evidencing the merger; • if a
      Supervised Mortgagee, a copy of the letter from the Federal Banking Agency that
      approved the merger; and • if applicable, a letter describing how the non-servicing
      Mortgagee will dispose of the FHA-insured Mortgages that it held or serviced
      that have not been acquired by a surviving FHA-approved Mortgagee. (2) Two or
      More FHA-Approved Mortgagees Merge (a) Standard An FHA-approved Mortgagee that
      is the surviving entity in a merger with another FHA-approved Mortgagee must
      notify FHA of the merger. The surviving Mortgagee may register each of the non-surviving
      Mortgagee’s branch offices that will remain open under the auspices of the surviving
      Mortgagee and pay the branch office registration fee(s) for the branch office(s)
      it chooses to register. (b) Required Documentation An FHA-approved Mortgagee
      that is the surviving entity in a merger with another FHA-approved Mortgagee
      must submit a Change Request to FHA containing the following: • a letter, signed
      by a Corporate Officer, describing the merger; • a copy of the legal document
      evidencing the merger; and • if a Supervised Mortgagee, a copy of the letter
      from the Federal Banking Agency or other supervisory authority that approved
      the merger. (3) Non-approved Entity That Survives a Merger with an FHA-Approved
      Mortgagee (a) Standard A non-approved surviving entity must become an FHA-approved
      Mortgagee in order to originate, underwrite, close, endorse, service, purchase,
      hold, or sell FHA-insured Mortgages, or to submit claims on Mortgages to FHA,
      including those previously held by the non-surviving Mortgagee. I. DOING BUSINESS
      WITH FHA A. FHA Lenders and Mortgagees (09/20/2021) 7. Post-approval Changes
      Handbook 4000.1 65 Last Revised: 11/26/2025 Immediately after becoming approved,
      the Mortgagee may register each of the non-surviving entity’s branch offices
      that will remain open under the auspices of the surviving Mortgagee and pay
      the branch office registration fee(s) for the branch office(s) it chooses to
      register. When new FHA Lender IDs for these branch offices are issued, the surviving
      Mortgagee must cease originating cases under the non-surviving Mortgagee’s old
      FHA Lender ID numbers. (b) Required Documentation A non-approved surviving entity
      must submit an online application for FHA approval containing all information
      and documentation required to demonstrate eligibility for approval. The entity
      must also submit with its application a letter signed by a Corporate Officer
      that describes the merger, and, if applicable, the surviving entity’s intentions
      regarding the non- surviving Mortgagee’s outstanding portfolio of FHA Mortgages
      and indemnifications. ii. Sale, Acquisition, or Disassociation FHA’s treatment
      of a sale, acquisition, or disassociation of an FHA-approved Mortgagee depends
      on whether the FHA-approved Mortgagee dissolves, continues as a subsidiary or
      corporate affiliation of the acquiring entity, or becomes an independent entity.
      (A) An FHA-Approved Mortgagee Is Acquired by Another Entity (1) Dissolution
      of Acquired FHA-Approved Mortgagee (a) Duties of Acquired FHA-Approved Mortgagee
      (i) Standard If an FHA-approved Mortgagee being acquired will be dissolved into
      another entity, it must voluntarily withdraw its FHA approval. The acquired
      Mortgagee must transfer any FHA-insured Mortgages in its portfolio to a Mortgagee
      approved to service FHA-insured Mortgages. The dissolving Mortgagee must continue
      to pay insurance premiums due and meet all other obligations associated with
      its FHA Mortgages until the Mortgages are transferred and the mortgage record
      changes are reported accurately to HUD in FHAC, EDI, or B2G. (ii) Required Documentation
      The FHA-approved Mortgagee being acquired must submit a Change Request to FHA
      in the form of a letter, signed by a Corporate Officer, that I. DOING BUSINESS
      WITH FHA A. FHA Lenders and Mortgagees (09/20/2021) 7. Post-approval Changes
      Handbook 4000.1 66 Last Revised: 11/26/2025 informs FHA of the details regarding
      the acquisition and requests the withdrawal of its FHA approval. The Mortgagee
      must submit a copy of the articles of dissolution, a letter describing the acquisition,
      and, if applicable, how it will or has disposed of FHA Mortgages that it held
      or serviced. (b) Duties of Acquiring Entity (i) Standard If a non-approved entity
      is acquiring and dissolving an FHA-approved Mortgagee, the non-approved entity
      must become an FHA-approved Mortgagee to originate, underwrite, close, endorse,
      service, purchase, hold, or sell FHA-insured Mortgages, or to submit claims
      on FHA Mortgages, including those previously held by the dissolved Mortgagee.
      Immediately after becoming approved, the Mortgagee may register each of the
      dissolved Mortgagee’s branch offices that will remain open under the auspices
      of the acquiring entity and must pay the branch office registration fee(s) for
      the branch office(s) it chooses to register. (ii) Required Documentation An
      FHA-approved Mortgagee that acquires and dissolves another FHA- approved Mortgagee
      is required to submit a Change Request to FHA through LEAP. A non-approved entity
      must submit an online application for FHA approval containing all information
      and documentation required to demonstrate eligibility for approval. The entity
      must also submit with its application a letter signed by a Corporate Officer
      that describes the acquisition, and, if applicable, the acquiring entity’s intentions
      regarding the dissolved Mortgagee’s outstanding portfolio of FHA Mortgages.
      (2) Continuation as Subsidiary or Corporate Affiliation (a) Acquisition by an
      FHA-Approved Mortgagee (i) Standard If the FHA-approved Mortgagee being acquired
      will continue to operate as a subsidiary or corporate affiliation of the acquiring
      FHA-approved Mortgagee, the acquired Mortgagee may continue to operate under
      its existing FHA Lender ID as a separately approved Mortgagee. I. DOING BUSINESS
      WITH FHA A. FHA Lenders and Mortgagees (09/20/2021) 7. Post-approval Changes
      Handbook 4000.1 67 Last Revised: 11/26/2025 (ii) Required Documentation Acquired
      FHA-Approved Mortgagee - The acquired Mortgagee must submit a Change Request
      to FHA in the form of a letter, signed by a Corporate Officer, informing FHA
      that it has been acquired and will continue to operate as a subsidiary or corporate
      affiliation of the acquiring FHA-approved Mortgagee. Acquiring FHA-Approved
      Mortgagee - The acquiring FHA-approved Mortgagee must submit a Change Request
      to FHA in the form of a letter, signed by a Corporate Officer, that: • describes
      the transaction; • lists the names of all parties; • lists the FHA Lender IDs
      of all parties; • states the date of the acquisition; and • stipulates that
      the acquired Mortgagee will continue as a subsidiary or corporate affiliation
      of the acquiring FHA-approved Mortgagee. (b) Acquisition by a Non-approved Entity
      (i) Standard If the acquired FHA-approved Mortgagee will continue to operate
      as a subsidiary or corporate affiliation of the acquiring entity, it may continue
      to operate as an FHA-approved Mortgagee under its own name, whether or not the
      acquiring entity becomes FHA-approved. (ii) Required Documentation The Mortgagee
      must submit a Change Request to FHA in the form of a letter, signed by a Corporate
      Officer, describing the acquisition and its future operating status. (B) An
      FHA-Approved Mortgagee Acquires a Non-approved Entity (1) Standard If an FHA-approved
      Mortgagee acquires a non-approved entity the Mortgagee must notify FHA of the
      acquisition. If an FHA-approved Mortgagee acquires a non-approved entity and
      the acquired entity will operate with a separate EIN as a subsidiary or corporate
      affiliation of the Mortgagee, the non-approved entity must apply for separate
      approval in order to originate, underwrite, close, endorse, service, purchase,
      hold, or sell FHA- insured Mortgages. I. DOING BUSINESS WITH FHA A. FHA Lenders
      and Mortgagees (09/20/2021) 7. Post-approval Changes Handbook 4000.1 68 Last
      Revised: 11/26/2025 (2) Required Documentation If an FHA-approved Mortgagee
      acquires a non-approved entity the Mortgagee is required to submit a Change
      Request to FHA in the form of a letter, signed by a Corporate Officer, describing
      the acquisition. If an FHA-approved Mortgagee acquires a non-approved entity
      and the acquired entity intends to originate, underwrite, close, endorse, service,
      purchase, hold, or sell FHA-insured Mortgages operating with a separate EIN
      as a subsidiary or corporate affiliation of the Mortgagee, the non-approved
      entity must submit an online application for FHA approval containing all information
      and documentation required to demonstrate eligibility for approval. The entity
      must also submit with its application a letter signed by a Corporate Officer
      that describes the acquisition. (C) An FHA-Approved Mortgagee Becomes Independent
      (1) Standard When an FHA-approved Mortgagee that has been a subsidiary or part
      of a larger entity becomes independent, the Mortgagee must notify FHA of the
      disassociation. If the disassociation results in changes to the Mortgagee’s
      Corporate Officers or Principal Owners, the Mortgagee must submit the proper
      notifications to FHA as described in this Handbook 4000.1. (2) Required Documentation
      When an FHA-approved Mortgagee that has been a subsidiary or part of a larger
      entity becomes independent, the Mortgagee must submit a Change Request to FHA
      in the form of a letter, signed by a Corporate Officer, describing the details
      of the disassociation.'
  judgment: false
