source:
  type: regulation
  id: hud-4000-1-i-a-3-supervised-mortgagee-smoke
  authority: HUD Handbook 4000.1 — Doing Business with FHA — Supervised Mortgagee approval requirements
  description: 'Smoke-test register for HUD Handbook 4000.1 Part I (Doing Business

    with FHA) — Supervised Mortgagee general approval requirements.

    Smoke-test scope: ONE obligation only; full Part I expansion happens

    in subsequent Round D drafting batches.

    '
obligations:
- id: hud-4000-1-i-a-3-supervised-mortgagee-smoke-full
  canonical_id: hud-4000-1-i-a-3-supervised-mortgagee-smoke-full
  section: HUD Handbook 4000.1
  description: "FHA Lenders and Mortgagees: Corporation (FDIC) or the National Credit Union Administration\
    \ (NCUA) \n(collectively, “Federal Banking Agencies”). \n(B) Large Supervised Mortgagee \nA Large\
    \ Supervised Mortgagee is a Supervised Mortgagee that has consolidated \nassets greater than or equal\
    \ to the threshold for audited financial report…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - hud
  - 4000-1
  - curated
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 Part I.A.3 — Supervised Mortgagee approval
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
    snapshot_id: 3bf33edadcf6461d
    fetched_at: '2026-05-25T14:10:11Z'
    content_hash: sha256:e1c2dc1c75ddb0ee32fe5c2fb7c9bb19f1c93b48a3e26e6d63dc6e7f37c92ec0
    paragraph_quote: "Corporation (FDIC) or the National Credit Union Administration (NCUA) \n(collectively,\
      \ “Federal Banking Agencies”). \n(B) Large Supervised Mortgagee \nA Large Supervised Mortgagee is\
      \ a Supervised Mortgagee that has consolidated \nassets greater than or equal to the threshold for\
      \ audited financial reporting established \nby the Federal Banking Agency with oversight of the\
      \ Mortgagee. Thresholds are \ncodified at 12 CFR §§ 363.1(a), 562.4(b)(2), and 715.4(c), and are\
      \ subject to change. \n(C) Small Supervised Mortgagee \nA Small Supervised Mortgagee is a Supervised\
      \ Mortgagee that has consolidated \nassets below the threshold for audited financial reporting established\
      \ by the Federal \nBanking Agency with oversight of the Mortgagee. Thresholds are codified at 12\
      \ CFR \n§§ 363.1(a), 562.4(b)(2), and 715.4(c), and are subject to change. \nA Supervised Mortgagee\
      \ must meet the general approval requirements set forth below. \nA Supervised Mortgagee may originate,\
      \ underwrite, close, endorse, service, purchase, \nb. Nonsupervised Mortgagee (03/14/2016) \nA Nonsupervised\
      \ Mortgagee is a lending institution that has as its principal activity the \nlending or investing\
      \ of funds in real estate Mortgages, consumer installment notes or \nsimilar advances of credit,\
      \ the purchase of consumer installment contracts, or from a \ndirectly related field. A directly\
      \ related field is something directly related to the lending \nor investing of funds in real estate\
      \ Mortgages, not simply actions relating to real estate in \ngeneral. \nA Nonsupervised Mortgagee\
      \ must meet the general approval requirements set forth \nbelow and: \n• meet FHA’s principal activity\
      \ requirement by deriving at least 50 percent of its \ngross revenue from: \no its activities in\
      \ lending or investing of funds in real estate Mortgages; \no consumer installment notes or similar\
      \ advances of credit; \no the purchase of consumer installment contracts; or \no a directly related\
      \ field;"
    drafter_attestation: Verbatim section from snapshot 3bf33edadcf6461d; boundary human-curated + substring-verified
      (2026-07-23).
  judgment: false
