Lender Eligibility
  
  Lenders must meet the following criteria to be eligible for the LI program:  
 
Unconditionally approved for the Direct Endorsement program for at least two years.  
 
Acceptable default/claim record when the LI application is processed:  
 
Default/claim rate is at or below 150 percent of the national average rate for all insured mortgages
or,

Default/claim rate is at or below 150 percent of the state average rate for insured mortgages (lender operates in a single state).

The default/claim rate is derived at the corporate level. The rate is summed based on the lender underwriting the loan. If there is more than one lender on the loan (e.g., originator and sponsor or agent), the sponsor/agent is used.
Use Neighborhood Watch/Early Warning System at https://entp.hud.gov/sfnw/nw/ to determine if your organization's default rate is acceptable. The current default view includes loans that are in a current default or claim status; these loans count toward the default/claim rate percentage. Loans previously in default (e.g., six months ago) but now cleared are not included in the current default/claim rate.
 
 
Lenders with a preclosing status are not eligible for the LI program.
  
   
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