The ability of an FHA-approved lender to secure FHA single- and multifamily mortgage insurance by following FHA guidelines. Under a direct endorsement program, applications for many of FHA's mortgage insurance programs can be underwritten by approved lenders who certify that the mortgage complies with applicable FHA requirements.

A lender that can complete the processing and closing of an FHA loan without prior approval from FHA.

An authorized local lender completes the processing of an FHA mortgage application.