If your company does not meet one or more of the F.H.A qualifications - HUD requirements listed below, please contact Mortgage Consulting Services Inc. (MCSI). We will be happy to discuss possible strategies and alternatives that you can employ to position your company to meet the requirements.

Business Form A corporation, Limited Liability Company, partnership or other chartered financial institution. Sole proprietorships are not permitted. Staff Must have at least two or more full time employees. A shared receptionist is permitted but cannot be used to meet this requirement. All employees (except a shared receptionist) must be employed exclusively by the applicant. The Operational officer or manager of each office must have a minimum of three years experience in originating mortgage loans. State Licensing Must be licensed or exempt from licensing in state where home office is located. Must be licensed or exempt from licensing in state or states where each HUD Approved Branch office operates. Net Worth Must have an adjusted net worth of at least $63,000, plus $25,000 for each branch office up to a maximum required net worth of $250,000. 20 percent of net worth up to a maximum amount of $100,000 must consist of liquid assets (cash, cash equivalents or readily convertible instruments) You Must submit audited financial statements with your Loan Correspondent application. Audited financial statements must include a computation of adjusted net worth page. MCSI will provide a sample of the HUD Adjusted Net Worth page needed for your audited financials as well as copies of the F.H.A qualifications - HUD regulations governing the computation of adjusted net worth and governing which assets are considered acceptable or unacceptable. You simply forward the sample and regulations to the CPA who prepares your audited financials and give them our phone number. MCSI will work with your CPA to insure that your audited financials meet F.H.A/HUD requirements. Office Facilities Must be separate and apart from any other entity. Must be in a location conducive to mortgage lending. Must be clearly identified to the public (signs, name listed on building directory). Must have standard office equipment (desks, phones, fax, copy machine, etc.). Must submit a Certification printed on company letterhead certifying that your office facilities meet F.H.A/HUD requirements. MCSI will provide you with the required Facilities Certification, which tracks the language of the applicable F.H.A/HUD regulations. You simply print the Certification on your letterhead, sign it, and date it. MCSI will also guide you through the process of producing the additional documentation required by HUD to establish that all of the office facilities requirements are met. Sanctions Must submit Certification printed on company letterhead certifying that your company has not been sanctioned. MCSI will provide you with the required Sanctions Certification, which tracks the language of the applicable F.H.A/HUD regulations. You simply print the Certification on your letterhead, sign it, and date it. Sponsoring Lender Must have a sponsoring lender. The Sponsoring lender must provide a letter stating that it will fund all F.H.A mortgages originated by your company. Loan Correspondent applications are submitted to the sponsoring lender for review. After the sponsoring lender determines that the application package is complete and all requirements are met, the sponsoring lender will add the required funding letter to the application package and forward the package to the HUD Office of Lender Approval MCSI likely maintains a working relationship with your sponsoring lender. MCSI will work with your sponsoring lender to monitor the progress of your application and to expedite the review process. If you do not have a sponsoring lender, MCSI will assist you in finding one. F.H.A Quality Control Plan All applicants must have a written F.H.A quality control plan that meets the requirements of applicable F.H.A/HUD regulations. Must submit a copy of your F.H.A quality control plan printed on company letterhead with your application package. MCSI will save you thousands of dollars in legal fees or consulting fees by providing you with a F.H.A quality control plan that meets all of the requirements of the applicable F.H.A/HUD regulations. Numerous companies have utilized our Quality Control Plan and have obtained F.H.A/HUD approval with our assistance. You simply print the Quality Control Plan on your letterhead. You will be responsible for implementing and maintaining compliance within the plan. Credit/Sanctions Requirements The mortgage company as well as its principals (officers and owners 25% or more of the company) must have acceptable credit histories. An original business credit report must be submitted even if it indicates that the company has no credit history (fairly common, especially for newly formed entities). The principals must submit tri-bureau credit reports, which include a search of public records. No minimum credit score is required, but outstanding past due accounts, collections, judgments, and tax liens are cause for disapproval. Similar derogatory items that occurred in the past and have been paid and/or brought current, and bankruptcies as well, can be overcome with an acceptable explanation and proper documentation; however, bankruptcies must have been discharged one or two years prior to applying for approval depending on the type of bankruptcy. Neither the company nor the principals may have incurred license restrictions, suspensions, disbarments or similar sanctions. HUD will conduct a background search in the Mortgage Asset Resource Institute (MARI) system to verify whether any such sanctions have been incurred. MCSI can guide you through the process of obtaining the proper documentation. We have assisted many clients draft the appropriate explanation letter necessary to appease HUD.

If your company does not meet one or more of the F.H.A qualifications - HUD requirements listed below, please contact Federal Mortgage Licensing, Inc. (MCSI). We will be happy to discuss possible strategies and alternatives that you can employ to position your company to meet the requirements.

Business Form A corporation, Limited Liability Company, partnership or other chartered financial institution. Sole proprietorships are not permitted. Staff Must have at least two or more full time employees. A shared receptionist is permitted but cannot be used to meet this requirement. All employees (except a shared receptionist) must be employed exclusively by the applicant. The Operational officer or manager of each office must have a minimum of three years experience in originating mortgage loans. State Licensing Must be licensed or exempt from licensing in state where home office is located. Must be licensed or exempt from licensing in state or states where each HUD Approved Branch office operates. Net Worth Must have an adjusted net worth of at least $63,000, plus $25,000 for each branch office up to a maximum required net worth of $250,000. 20 percent of net worth up to a maximum amount of $100,000 must consist of liquid assets (cash, cash equivalents or readily convertible instruments) You Must submit audited financial statements with your Loan Correspondent application. Audited financial statements must include a computation of adjusted net worth page. MCSI will provide a sample of the HUD Adjusted Net Worth page needed for your audited financials as well as copies of the F.H.A qualifications - HUD regulations governing the computation of adjusted net worth and governing which assets are considered acceptable or unacceptable. You simply forward the sample and regulations to the CPA who prepares your audited financials and give them our phone number. MCSI will work with your CPA to insure that your audited financials meet F.H.A/HUD requirements. Office Facilities Must be separate and apart from any other entity. Must be in a location conducive to mortgage lending. Must be clearly identified to the public (signs, name listed on building directory). Must have standard office equipment (desks, phones, fax, copy machine, etc.). Must submit a Certification printed on company letterhead certifying that your office facilities meet F.H.A/HUD requirements. MCSI will provide you with the required Facilities Certification, which tracks the language of the applicable F.H.A/HUD regulations. You simply print the Certification on your letterhead, sign it, and date it. MCSI will also guide you through the process of producing the additional documentation required by HUD to establish that all of the office facilities requirements are met. Sanctions Must submit Certification printed on company letterhead certifying that your company has not been sanctioned. MCSI will provide you with the required Sanctions Certification, which tracks the language of the applicable F.H.A/HUD regulations. You simply print the Certification on your letterhead, sign it, and date it. Sponsoring Lender Must have a sponsoring lender. The Sponsoring lender must provide a letter stating that it will fund all F.H.A mortgages originated by your company. Loan Correspondent applications are submitted to the sponsoring lender for review. After the sponsoring lender determines that the application package is complete and all requirements are met, the sponsoring lender will add the required funding letter to the application package and forward the package to the HUD Office of Lender Approval MCSI likely maintains a working relationship with your sponsoring lender. MCSI will work with your sponsoring lender to monitor the progress of your application and to expedite the review process. If you do not have a sponsoring lender, MCSI will assist you in finding one. F.H.A Quality Control Plan All applicants must have a written F.H.A quality control plan that meets the requirements of applicable F.H.A/HUD regulations. Must submit a copy of your F.H.A quality control plan printed on company letterhead with your application package. MCSI will save you thousands of dollars in legal fees or consulting fees by providing you with a F.H.A quality control plan that meets all of the requirements of the applicable F.H.A/HUD regulations. Numerous companies have utilized our Quality Control Plan and have obtained F.H.A/HUD approval with our assistance. You simply print the Quality Control Plan on your letterhead. You will be responsible for implementing and maintaining compliance within the plan. Credit/Sanctions Requirements The mortgage company as well as its principals (officers and owners 25% or more of the company) must have acceptable credit histories. An original business credit report must be submitted even if it indicates that the company has no credit history (fairly common, especially for newly formed entities). The principals must submit tri-bureau credit reports, which include a search of public records. No minimum credit score is required, but outstanding past due accounts, collections, judgments, and tax liens are cause for disapproval. Similar derogatory items that occurred in the past and have been paid and/or brought current, and bankruptcies as well, can be overcome with an acceptable explanation and proper documentation; however, bankruptcies must have been discharged one or two years prior to applying for approval depending on the type of bankruptcy. Neither the company nor the principals may have incurred license restrictions, suspensions, disbarments or similar sanctions. HUD will conduct a background search in the Mortgage Asset Resource Institute (MARI) system to verify whether any such sanctions have been incurred. MCSI can guide you through the process of obtaining the proper documentation. We have assisted many clients draft the appropriate explanation letter necessary to appease HUD.