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Currently, under 24 CFR 202.9, Investing Mortgagees must meet all general approval requirements in 24 CFR 202.5.  Certain general approval requirements are not reflective of the risk posed by Investing Mortgagees, and others can be obstacles that impede or prevent new Investing Mortgagees. This rule would revise the requirements that Investing Mortgagees must meet to gain and maintain status as FHA approved lenders to make the standards commensurate with Investing Mortgagees’ risk, reduce barriers to approval for new Investing Mortgagees, and increase access to capital for all FHA approved mortgagees. Additionally, under current FHA regulations, Freddie Mac (the Federal Home Loan Mortgage Corporation) and Fannie Mae (the Federal National Mortgage Association), (collectively the Government Sponsored Enterprises (GSEs)) have authority to become FHA approved lenders.  FHA lenders are authorized to originate, underwrite, close, endorse, service, purchase, hold, or sell FHA-insured Mortgages. The GSEs are chartered by the U.S. Congress to provide a stable source of liquidity for home purchases, refinances of existing home mortgages and the financing of multi-family rental housing. The GSEs’ federal charters limit their operations to the secondary mortgage market to purchase and securitize mortgage loans originated by lenders into mortgage-backed securities, which are guaranteed by the GSEs.  This proposed rule would reclassify the GSE as investing mortgagees to align their authorized FHA activities with the activities authorized in their charters.