The Cost Of FHA

The cost of a seat at the table to originate FHA loans has increased, once again.  Mortgage Bankers who wish to originate FHA product must keep a cumulative net worth equal to the sum of net worth requirements for each FHA loan type they wish to originate.  For example the net worth requirement for a lender wanting to originate standard Single Family and Reverse Mortgages (HMBS) will need a minimum net worth of $7.5m.  Once upon a time you only needed $1m net worth to get in the game.  Not so these days. Industry consolidation is well under way.