How a Full Eagle Brokers FHA Loans
Yes! A Full Eagle can broker FHA loans. The difference, that confuses most, is the relationship this creates in FHA Connection. When a loan correspondent establishes a broker relationship with a lender it is entered into FHA Connection as a Sponsor to Correspondent Relationship. If a lender attempts to enter a Full Eagle into FHA connection under this relationship - It Doesn’t Work! This leads many to believe that a Full Eagle cannot broker, but this just isn’t true. You have to enter to relationship into FHA Connection a little differently.
The relationship created when a Full Eagle brokers to another Full Eagle is a Principal to Authorized Agent relationship. In FHA Connection the Full Eagle Acting as the broker is called the “Principal” and the lender buying the loan is the “Authorized Agent.” The Principal is Authorizing the Agent to Underwrite and Insure the loans on their behalf thus allowing the Principal to broker the loan to the Authorized Agent.
There is one extra requirement, FHA requires that the loan closes in the name of the Principal who is the Originating Lender. So the mortgage and all documents must be drawn in the name of the “Broker” when they are a Full Eagle. The brokering Full Eagle must then complete an assignment of mortgage and an allonge to transfer rights in the loan to the lender who is actually making the loan.
Hope this helps! Good luck.