source:
  type: guide
  id: hud-4000-1-i-b-nonsupervised-mortgagee
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part I — b. Nonsupervised
    Mortgagee (03/14/2016)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part I — b. Nonsupervised
    Mortgagee (03/14/2016).
  coverage_tier: operative
obligations:
- id: hud-4000-1-i-b-nonsupervised-mortgagee-full
  canonical_id: hud-4000-1-i-b-nonsupervised-mortgagee-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part I — b. Nonsupervised
    Mortgagee (03/14/2016)
  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 — b. Nonsupervised
      Mortgagee (03/14/2016)
    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: 'b. Nonsupervised Mortgagee (03/14/2016) i. Definition A Nonsupervised
      Mortgagee is a lending institution that has as its principal activity the lending
      or investing of funds in real estate Mortgages, consumer installment notes or
      similar advances of credit, the purchase of consumer installment contracts,
      or from a directly related field. A directly related field is something directly
      related to the lending or investing of funds in real estate Mortgages, not simply
      actions relating to real estate in general. ii. Standard A Nonsupervised Mortgagee
      must meet the general approval requirements set forth below and: • meet FHA’s
      principal activity requirement by deriving at least 50 percent of its gross
      revenue from: o its activities in lending or investing of funds in real estate
      Mortgages; o consumer installment notes or similar advances of credit; o the
      purchase of consumer installment contracts; or o a directly related field; I.
      DOING BUSINESS WITH FHA A. FHA Lenders and Mortgagees (09/20/2021) 2. Types
      of Approved Mortgagees Handbook 4000.1 4 Last Revised: 11/26/2025 • have an
      acceptable Business Form; • demonstrate Creditworthiness; and • have an acceptable
      Funding Program. iii. Activities Authorized A Nonsupervised Mortgagee may originate,
      underwrite, close, endorse, service, purchase, hold, or sell FHA-insured Mortgages.'
  judgment: false
