Supervised Mortgagee

• The supervised mortgagee is usually a bank, credit union or savings bank that accepts deposits and provides other banking services. They are called supervised because other government agencies supervise their activities regularly. The financials of these companies are reviewed by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, the National Credit Union Administration (NCUA) and the office of the Comptroller of the Currency (OCC), just to name a few. FHA still regulates these companies, but their approval as a bank through the other government agencies is usually sufficient for them to also qualify to offer FHA loans.
  
  

Nonsupervised Mortgagee

• FHA considers any institution other than a federally chartered bank or credit union a nonsupervised mortgagee. Nonsupervised mortgagees include mortgage brokers and mortgage lenders that do not offer other traditional banking services like checking and savings accounts and are not supervised by the agencies that supervise banks. These companies must submit proof of their financial stability and meet FHA's minimum net worth requirements.
  
  

Government Mortgagee

• Some government agencies provide mortgage financing throughout the country. Often these agencies belong to the state or local governments. FHA approves and certifies these government lenders just as they do any other FHA approved lender. These lenders often serve lower to middle income families or provide loans that rehabilitate neighborhoods. Many state housing finance agencies use FHA loans, as they promote home ownership within their state and cities.
  
  

Investing Mortgagee

• Some companies do not want to originate or approve FHA mortgages; they only want to own FHA mortgages. These mortgage investors must receive approval from FHA to own the loans. They may also service the loans, receive the payments and provide customer service, or they may choose only to invest in the loans. They could have an agreement to purchase FHA loans originated by nonsupervised, supervised or government mortgagees.