FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Direct Loans (09/26/2022)
FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Direct Loans (09/26/2022).
Verbatim regulatory text
Verbatim provisions from FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Direct Loans (09/26/2022) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Direct Loans (09/26/2022)
a. Direct Loans (09/26/2022) i. Definition A Direct Loan process refers to where the Borrower applies directly to the Lender or its sponsored TPO for the Loan without assistance from a Dealer, contractor, or third party that has a financial interest in the loan transaction. ii. Standard The credit application, signed by the Borrower, may be filled out by the Borrower or by a person acting at the direction of the Borrower who does not have a financial interest in the loan transaction. For a Direct Loan purchase transaction, loan proceeds are disbursed to the Borrower and seller jointly. However, the Borrower may provide the Lender with an executed assignment of Borrower’s interest in the loan proceeds to the seller on or before the date of disbursement to properly complete payment. For a Direct Loan refinance transaction, proceeds are disbursed to the Note holder of the Loan being paid off.