Chapter
3
Miscellaneous Policies
Page 3-01
Mortgagee
Letter 1997-12
made it mandatory for all direct endorsement lenders to conduct
FHA mortgage insurance processing via electronic means. The policy
was further amplified by the issuance of Mortgagee Letter 1998-13.
The
HUD Homeownership Centers are only one part of the mortgage insurance
process. To obtain HUD/FHA mortgage insurance, lenders must have
access to the FHA Connection
or other acceptable system.
FHA
Connection is an interactive system on the Internet that gives approved
HUD/FHA lenders real-time access to several HUD/FHA systems for
the purpose of originating loans. It is mandatory for Direct Endorsement
lenders and Loan Correspondent mortgagees to process case number
assignments, inspector assignments, appraisal information, receive
insurance and retrieve loan data electronically. Lenders must be
able to use The FHA Connection's different functions for the different
phases of the FHA insurance application process.
HUD/FHA
will not accept telephone or mail requests for case numbers, case
status, lender transfers, appraisal reassignments, duplicate MICs,
borrower & address changes, or any other actions that can be performed
through the FHA Connection by the lender.
FHA Connection has a host of other features. Below are some of the
more popular functions that have been added.
Underwriter
Activity, under the Origination Reports menu, provides a report
of underwriter reviews for active underwriters employed by direct
endorsement lenders. This includes the lender's automated underwriting
system (AUS), if applicable. Reviews are performed for post endorsement
technical review cases and test (preclosing) cases.
HUD-approved
Title I and Title II non-supervised lenders, non-supervised mortgages,
and loan correspondents (collectively referred to as "lenders")
with fiscal years ending on or after September 30, 2002 are required
to submit their financial audits electronically. This is done via
the Lender Assessment application in the FHA Connection. For more
details, please refer to https://entp.hud.gov/clas/faq-lass.cfm
The annual verification form is now available electronically by
going to the Institution Profile in the Lender Approval application
in the FHA Connection. The same page will show a "Pay Online" button
if the re-certification fee is due. (Refer to Mortgagee
Letter 2005-24.)
FHA Connection Error Messages
1:
When requesting a case number if you get an error message that states:
"Request placed on hold pending field office processing" or "Duplicate
Address", wait 24-hours and go into Holds Tracking to retrieve your
case number. The case number will remain available in Holds Tracking
for 72-hours. You may also use Case Query to check on the case number.
Case Query is not just for querying known case numbers. When a case
number is not known, you can:
a:
choose the field office.
b: put in on the options, name, address or SSN
c: click send. You should then get one or more
selections to choose from.
2:
As of June 20, 2005, FHA Connection validates the name, Social Security
Number, and Date of Birth for all borrowers. The Address Validation
screen for Case Number Assignment is becoming the Borrower/Address
Validation screen. Users are required to enter both address and
borrower information. The address information will continue to be
validated online, as it has been for years. The borrower information
will also be validated online. The borrower validation process can
take from 5 to 10 seconds, please be patient. If all information
validates, the user will be presented with the Case Number Assignment
screen. If any information is not validated, the user will have
the option of correcting the information. If the user verifies that
all borrower information is correct, they should choose to "Override"
the validation. This "Override" will place the loan in Holds Tracking.
The information will then be validated overnight with the Social
Security Administration.
If the loan is placed in Holds Tracking by 4 p.m. the user can check
Holds Tracking the next business day to see if a case number has
been assigned. If the loan is placed in Holds Tracking after 4 p.m.,
the user will have to wait two business days to see if a case number
has been issued. If borrower information is changed after a case
number has been issued, the new information will be validated online.
This validation process will take 5 to 10 seconds, please be patient.
If all information validates, the process will proceed normally.
If information is not validated, the user will have the option of
correcting the information. If the user verifies that If the user
verifies that all borrower information is correct, they should choose
to "Override" the validation. This will place a Case Warning on
the loan. The information will then be validated overnight with
the Social Security Administration. If the Social Security Administration
confirms the information is valid, the Case Warning will be removed.
3:
UFMIP Due - Check ADP code. Condos (734/731) and 203(k)s (702) do
not pay UFMIP. If this is a streamline refinance the "rollover"
from the previous case number may not be credited to your new case
number. If you have documentation stating the required UFMIP has
been received but is still not showing up on the FHA Connection,
then you need to contact your representative in Washington for assistance
at: (202) 708-9906.
4:
If the message states "Zip Code does not exist in field office",
verify that the property is located in the field office jurisdiction
for which you are requesting a case number. Go to the FHA Approval
Lists and select Zip Codes, which will give you the correct field
office and county code. When you input the county code and it does
not match the county as listed on the mortgage note, go to "Borrower/Address
Change" and enter the correct county code. If you have tried to
perform the borrower/address, change and get the message: "Duplicate
Address", please contact the appropriate HOC.
5:
If the message states "Address Mismatch", the pre-CHUMS information
on the Single Family Insurance System (SFIS) is inconsistent with
the current information and no new case number can be assigned until
corrected. Please call the HUD Support Service Center help number
at (703) 235-8117.
6:
If the message states "Mortgage Amount exceeds the maximum allowed";
check the MCAW to see if your base loan amount in box 3a does not
exceed the loan limits for that county. Did you default to the lower
of the two calculations in 10f(1) & 10f(2)? Did you correctly state
whether or not the UFMIP is financed? Did you forget to state that
this is an EEM?
Other
Helpful Hints
- If
you mistakenly order a case number and want to change the field
to be a refinance, select Case Number Assignment and then Update
Existing Case. To obtain your netting amount, go to Case Processing
and then Refinance Authorization.
- If
you do not know the 10th digit of the old FHA case number, you
can check in Case Query for the 10th digit or enter "X" as the
last digit.
- To
obtain an inspector or an appraiser assignment, you must have
their ID Number available when you order a new case number. The
ID number can be obtained by clicking on FHA Approval Lists and
selecting Appraiser or Inspector.
- Condo
ID must be input at the time of establishing a new case with and
ADP code of 731 or 734.
If
you have any technical questions you can email
FHA Connection. Check out "FHA
Connection Frequently Asked Questions" for some solutions
to common problems. You can also call the FHA Connection HELP line
at: (202) 755-5429.
Download
the Quick Start
Guide for the FHA Connection.
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