Frequently Asked Questions
Lender Assessment Subsystem (LASS) Release 5.0.0.0 - Systems

Q1. What is the web address to access LASS?

A1. Lenders always logon to LASS via the FHA Connection website: (https://entp.hud.gov/clas/)

Auditors always logon to LASS via the Secure Systems website: (http://www.hud.gov/offices/reac/online/reasyst.cfm)

Q2. How do I get a LASS user ID?

A2. Each LASS user must have a HUD issued ID. Employees at the FHA approved lending institution register for either standard user IDs or application coordinator IDs via the FHA Connection website (https://entp.hud.gov/clas/ ).

See user guide chapter 1.1 "Lender Registration" of the LASS User Manual for step-by-step instruction on registering for IDs.

Employees at the CPA firm register for Independent User IDs via the Secure Systems website (http://www.hud.gov/offices/reac/online/reasyst.cfm).

See user guide chapter 1.2 "Auditor Registration" of the LASS User Manual for step-by-step instruction on registering for IDs.

Once each user has an ID, the FHA Application Coordinator assigns the ID a role in LASS. See question 3 for role definitions and question 4 for instruction on role assignment.

Q3. What are the LASS user roles?

A3. Lender Submitter - The Lender Submitter is an employee at the FHA approved lending institution that performs the data entry of the financial statement information into LASS. It is required to have a Lender Submitter.

Auditor Data Entry - The Auditor Data Entry role is an employee at a CPA firm, independent of the FHA approved lender, who performs the data entry of the financial statement information into LASS. It is not required to have an Auditor Data Entry role.

Independent Public Accountant (IPA) - The IPA is an employee at a CPA firm, independent of the lender, who performs the attestation on the lender's submission. It is required to have an IPA.

Q4. How is access to LASS assigned to users?

A4. The FHA Application Coordinator assigns each user's ID a LASS role (see Question 3 for LASS role definitions) via the FHA Connection (https://entp.hud.gov/clas/) ID Administration link. Here is a brief outline:

1) Login to FHA Connection (https://entp.hud.gov/clas/)
2) Click on ID Maintenance
3) Click on ID Administration
4) Enter user's ID in "By ID" field
5) User's information autopopulates the screen
6) Select appropriate role
7) Click send

See user guide chapter 1.3 "Role Code Definitions & Assigning Role Codes" of the LASS User Manual for step-by-step instruction on how to assign roles and access to LASS.

Q5. What does the "Unauthorized" error message indicate when attempting to logon?

A5. It could indicate that the user ID has not been assigned access to LASS. Please see Question 4 or see user guide chapter 1.3 "Role Code Definitions & Assigning Role Codes" of the LASS User Manual for step-by-step instruction on how to assign roles and access to LASS.

It could also indicate that the login failed due to three unsuccessful login attempts or the expiration of the user's password. Please see Question 7 for guidance on resetting passwords.

Q6. I am performing the Auditor Data Entry role or the Independent Public Accountant (IPA) role, but my client is not listed in the drop down selection in LASS. Why?

A6. Most likely this indicates that the FHA Application Coordinator has not assigned the auditor's Independent User ID a role in LASS. See Question 4 or see the user guide chapter 1.3 "Role Code Definitions & Assigning Role Codes" of the LASS User Manual for step-by-step instruction on how to assign roles and access to LASS.

Q7. How are passwords reset?

A7. Both lenders and auditors are locked out of their respective systems after three unsuccessful login attempts and must have their passwords reset. Passwords must also be reset if they expire (i.e. user has not logged in within a certain amount of days).

Lenders - The FHA Application Coordinator can reset passwords for the FHA Connection users' IDs. Passwords can also be reset by emailing SF Administration or LASS Security Administrator, or by calling the Home Ownership Center that covers your state.

See the LASS homepage to determine which Homeownership Center covers you: http://www.hud.gov/offices/hsg/sfh/lass/prodlass.cfm

Auditors - Auditors passwords are reset by the Technical Assistance Center (TAC), regardless of which REAC system the auditor is associated. Auditors' passwords can also be reset by emailing the LASS Security Administrator.

Auditors are prompted by the system to change their passwords every twenty-one (21) days. If the twenty-one days expire without the password being changed, it must be reset.

Q8. Please provide a general overview on how to submit electronically.

A8. A. Financial Data Template (FDT) and Data Collection Form (DCF), collectively called the submission, are completed by LASS data entry role.
B. Independent Public Accountant performs attestation function.
C. Lender submits submission to HUD within ninety (90) days of fiscal year end.
D. On-time or late submission reviewed by HUD and deemed sufficient: Status changes to "Audit Accepted".
E. On-time submission reviewed by HUD and deemed deficient: Lender is contacted to submit cure(s). Status changes to "Rejected" or "Deficient".
F. Late submission reviewed by HUD and deemed deficient: Lender is contacted to submit cure(s), time permitting (i.e., cure period has not elapsed). Status changes to "Insufficient Cure" or "Rejected". If a submission is late, it is automatically reviewed as a cure.

For a more detailed explanation on completing the lender's LASS submission, see the LASS User Manual.

Q9. What does each status mean?

A9.

• Draft - Submission has been created. Action required: Complete submission.
• Review - Submission was on time and is under review at HUD. No action required.
• Review Cure - Submission was either late or a cure to a deficient submission was submitted and is under review at HUD. No action required.
• Deficient - Lender needs to address deficiencies in submission via LASS. Lenders can review the deficiencies by accessing "Reports" and clicking on "Lender Deficiency Report". Action required: Submit cure to HUD.
• Insufficient Cure - Lender needs to address deficiencies in submission via LASS. Lenders can review the deficiencies by accessing "Reports" and clicking on "Lender Deficiency Report". Action required: Submit cure to HUD.
• Rejected - Lender needs to address reason for rejection. Action required: Submit cured submission to HUD.
• IPA Review - IPA is performing attestation. Action required: IPA must submit reviewed submission back to lender's LASS inbox.
• IPA Agree - IPA agreed to the data and it is ready to be submitted to HUD by the lender. Action required: Lender must submit submission to HUD.
• IPA Disagree - the IPA disagreed to the data and it must be edited by the lender and resubmitted to the IPA for attestation. Action required: Edit data and resubmit to IPA.
• Withdrawn - the lender's FHA approval has been withdrawn. Lender can appeal the withdrawal via LASS. See FAQs for Appeals Process or see the user guide chapter 6.0 "Responding to a Withdrawn Submission" of the LASS User Manual for step-by-step instruction on how to assign roles and access to LASS.
• Terminated - the lender's FHA approval has been terminated. Lender must wait one (1) year from date of termination to reapply. Contact the Office of Lender Activities at (202) 755-7400 ext. 163 or email the LASS Security Administrator.
• Audit Accepted - Submission has been accepted and the financial statement portion of the reinstatement process is complete. No action required.

Q10. What lines in LASS Financial Data Template (FDT) or Data Collection Form (DCF) are mandatory?

A10. Lines that are mandatory are identified with an asterisk (*).

Q11. What if the mandatory lines, denoted by an asterisk (*), are not applicable?

A11. If the mandatory line is not applicable, enter zero (0). You must manually type "0" into each line with an asterisk that does not apply.

Q12. Can additional detail lines be added to the Financial Data Template (FDT)?

A12. No, it is not possible for a user to add detail lines. Please make sure the Financial Data Template (FDT) does not already provide a line for the account. Definitions of each line are provided in the Line Item Definition Guide. There is also an icon on each page of the FDT titled "Line Item Definitions", which allows the user to search for line item definitions by line number.

If additional detail lines are needed to accommodate the accounts, combine the accounts in the most logical way and indicate in the description each account included. Please do not input "Other" on the detail description line or the submission will be rejected.

Q13. I am not able to change the amount on the Financial Data Template (FDT), line 403, Loss/Gain, on the Cash Flow Statement, therefore, my cash flow statement is not balancing. How do I correct this?

A13. Financial Data Template, line 403, is auto-populated from the summation of FDT lines 703, 704, 705, 706, 707, 708, 715 and 716 from the Income Statement. These FDT line items represent the gains or losses reported by the lender. Gains and losses represent the difference between the amount an asset was purchased for and the amount the asset was sold. The actual cash received for the sale is not equal to the gain or loss. However, the gain or loss directly increases or decreases the revenue and net income/loss reported on the income statement. Therefore, in order to calculate the cash position on the Cash Flow Statement, the net income/loss must be adjusted to reflect the cash transaction. The FDT automatically backs out the net gain or loss from the income statement by posting the reciprocal sum on line 403. In order for the Cash Flow Statement to balance, the lender then needs to record the CASH portion of the gain and loss transactions within the Operating Activities and/or Investing Activities, whichever is appropriate (see FASB and GAAP guidance to determine proper classification of transaction). Use the lines labeled "Other" if another applicable line is not available. Group similar transactions together in the "Details" line for "Other" if there are not enough lines to list each transaction.

Q14. An error message appears stating that the series of questions starting with G3000 need to be completed. Where are they located?

A14. The G3000 series of questions are on the Financial Statement tab in the Data Collection Form (DCF). When you click on the Data Collection Form (DCF) link, it defaults to the General Information tab; please click on the tab next to it, Financial Statements.

Q15. What is the Unique IPA Identification (UII)?

A15. The Unique IPA Identification (UII) is a five (5) digit identification number for the independent CPA firm that performs the attestation function. If the audit firm has previously done work with REAC, they may already have a UII. The UII is associated with the CPA firm's tax ID number and zip code. If the CPA firm does not have a UII, the ID assigned as the Independent Public Accountant (IPA) applies for it via the Secure Systems website. (http://www.hud.gov/offices/reac/online/reasyst.cfm) The UII number will be instantaneously displayed upon completion of the registration process. The UII is entered on the Data Collection Form (DCF), General Information tab, question G2200-009.

See user guide chapter 1.2, "Auditor Registration" of the LASS User Manual for step-by-step instruction on how to obtain a UII.

Q16. Where and how are the footnotes, audit findings (if applicable) and corrective action plans (if applicable) attached to the submission?

A16. The footnotes, audit findings and corrective action plans are attached under the Notes & Findings link. The documents must be saved as PDF files in order to be attached to their respective tabs.

See user guide chapter 5.8, "Notes & Findings" of the LASS User Manual for step-by-step instruction on how to attach footnotes, audit findings (if applicable) and corrective action plans (if applicable).

Q17. Where and how are the Independent Auditor's Reports attached to the submission?

A17. Copies of hand signed Independent Auditor's Reports are attached to the Data Collection Form, Financial Statement tab as PDF files. Questions G3000-090, G3000-100 and G3000-110 provide detail links to attach copies of hand signed Independent Auditor's Report on Financial Statement and Supplemental Data, Independent Auditor's Report on Internal Controls and the Independent Auditor's Report on Compliance with Specific Requirements Applicable to Non-Major/Major HUD Programs, respectively.

Acceptable formats of a hand signature: a) scanned copy of original document with hand signature; or, b) image file containing legal hand signature inserted onto document.

Q18. How do I detach a file(s)?

A18. Files cannot be detached. If you have attached the wrong file, you can attach and save a new file over the existing one.

Q19. An error appears when the "Submission Completeness Check" button is clicked. What does this mean?

A19. Follow the error detail(s) to the indicated form(s) and edit data by consulting the hardcopy financial statements and reports. If further guidance is needed, consult with your auditor. If additional assistance is needed, please call the LASS accounting/auditing helpdesk at (202) 755-7400 ext. 100.

Q20. An error message appears requiring an attachment be uploaded to the "Audit Findings" and/or "Action Plan" tabs, but there were no audit findings and, therefore, no action plans. What can be done?

A20. If either question G3000-040 or G3000-090 on the Data Collection Form (DCF) was answered "Yes", it is required to upload an attachment to the audit finding and action plan tabs.

And/or:

If an attachment is uploaded to the "Audit Finding" tab, an attachment must be uploaded to the "Action Plan" tab. The inverse is also true, if an attachment is uploaded to the "Action Plan" tab, a corresponding attachment must be uploaded to the "Audit Finding" tab.

See user guide chapter 5.8, "Notes & Findings" of the LASS User Manual for step-by-step instruction on how to attach audit findings and corrective action plans.

Q21. If during the attestation, the Independent Public Accountant (IPA) does not agree to the data entered in LASS, how can it be changed?

A21. The Independent Public Accountant (IPA) must click on the "disagree" radio button to one of the six auditor procedures in the Agreed-Upon-Procedures Report if they do not agree with the data entered in LASS. The submission is returned in editable format to the LASS inbox of the ID that performed the data entry. Once the required edits have been made, the submission must be submitted again to the IPA for review.

Q22. The status is in "IPA Agree", but changes need to be made. How can this be done?

A22. Once the status is "IPA Agree", the submission is in read-only format to all users. Please email the request for deletion of the submission to LASS@hud.gov.

Q23. Once the Independent Public Accountant (IPA) agrees to the data in the submission, what is the next step?

A23. The Lender Submitter logs into LASS via the FHA Connection https://entp.hud.gov/clas/index.cfm and opens the submission. Lender Submitter clicks the "Submit Financial Data" radio button to transmit the submission to HUD.

See user guide chapter 5.12, "Submit to HUD for Review" of the LASS User Manual for step-by-step instruction on how transmit submission to HUD.

Q24. How do I know if the submission has been accepted?

A24. The status of the submission is displayed in the LASS inbox of the lender. The LASS inbox is accessible by logging into the FHA Connection (https://entp.hud./clas). If the status is "Audit Accepted", the financial statement portion of the recertification process is complete. The "Audit Accepted" status is the only notification that FHA approved lenders will receive that their submission has been accepted. See question 9 for definitions of other possible statuses.

If the status is "Rejected", "Deficient" or "Insufficient Cure", the lender can access the deficiency reasons by clicking on "Lender Deficiency Report" under the "Reports" link via LASS. Lenders can also be put in contact with their assigned analyst to discuss the deficiencies by calling the LASS accounting/auditing helpdesk at (202) 755-7400 ext. 100.

Q25. How do I know if the submission has not been accepted?

A25. If an on-time submission has been rejected or deemed deficient by HUD, lenders will be notified via certified mail at the lender's address of record. The letter will discuss the rejection or deficiency reasons. In addition, lenders can access the deficiency reasons by clicking on "Lender Deficiency Report" under the "Reports" link. Lenders can also be put in contact with their assigned analyst to discuss the deficiencies by calling the LASS accounting/auditing helpdesk at (202) 755-7400 ext. 100

Lenders are granted thirty (30) days from receipt of the certified letter to submit an acceptable response via LASS or be subject to administrative action. Questions should be directed to the assigned LASS analyst listed in the right hand column of the LASS inbox.

Please note that lenders who received a notice of violation due to late filing of their submission will NOT receive an additional notice of violation if their submission is deemed deficient. Lenders should check their status periodically via the LASS inbox until the status reads "Audit Accepted".

Q26. What needs to be done if the submission status is "Rejected"?

A26. A submission has been rejected so that the data can be edited. A submission is rejected for various reasons and a letter will be sent via certified mail to the lender's address of record outlining the reasons for rejection. The lender has 30 days from receipt of the letter to correct the submission via LASS.

See user guide chapter 5.14 "Responding to a Rejected Submission" of the LASS User Manual for step-by-step instruction on how to assign roles and access to LASS. (Please note that lenders who received a notice of violation due to late filing of their submission will NOT receive an additional notice of violation if their submission rejected. Lenders should check their status periodically via the LASS inbox until the status reads "Audit Accepted".)

Q27. What needs to be done if the submission status is "Deficient"?

A27. A submission is marked deficient when additional information is needed before HUD can recommend the lender be recertified. The lender will be notified via certified mail that their submission has been deemed deficient and that a cure must be submitted via LASS within thirty (30) days.

Lenders can review their deficiencies by accessing "Reports" and clicking on "Lender Deficiency Report". The lender has 30 days from receipt of the letter to submit an acceptable cure through LASS. Cures must be PDF files in order to be uploaded to LASS.

See user guide chapter 5.13 "Responding to a Deficient Submission" of the LASS User Manual for step-by-step instruction on how to respond to a deficient submission.

Please note that lenders who received a notice of violation due to late filing of their submission will NOT receive an additional notice of violation if their submission is deemed deficient. Lenders should check their status periodically via the LASS inbox until the status reads "Audit Accepted".

Q28. What needs to be done if the submission status is "Insufficient Cure'?

A28. Insufficient cure status either means the submission was late and deemed deficient, or the cure submitted to an on-time submission is unacceptable, incomplete or deemed deficient. Either way, additional information is needed before HUD can recommend the lender be recertified. Lenders submit additional information via LASS, time permitting.

A notice of violation is sent via certified mail to lenders whose submissions are late or deficient. The notice of violation grants thirty (30) days from its receipt to submit an acceptable submission or cure. Lenders will not receive an additional notice of violation if the submission or cure is unacceptable (i.e. "Insufficient Cure" status). However, lenders are permitted to submit additional cures if the initial thirty (30) day time period has not expired.

Lenders can review their deficiencies by accessing "Reports" and clicking on "Lender Deficiency Report". Cures must be PDF files in order to be uploaded to LASS.

See the user guide chapter 5.13 "Responding to a Deficient Submission" of the LASS User Manual for detailed step-by-step instruction on how to respond to a deficient submission.

Q29. Who can attach a cure to a deficient submission?

A29. The Lender Submitter Role and the Auditor Data Entry role both have the capability of attaching cures to the deficient submission. However, only the Lender Submitter Role can submit the cures to HUD.

Q30. What could be the problem if the lender cannot successfully attach a cure to the submission?

A30. Make sure the cures are in an acceptable format. They must be saved as PDF files.

Cure files that are too large may present problems when trying to attach. As the LASS system provides four cure tabs, divide larger files into four smaller files.

Q31. If the cure requires a scanned document, how are they attached?

A31. Scanned documents must be saved as PDF files and attached to the submission.

See the user guide chapter 5.13 "Responding to a Deficient Submission" of the LASS User Manual for detailed step-by-step instruction on how to respond to a deficient submission.

Q32. If the submission was not acceptable, why was I not notified?

A32. Lenders who received a notice of violation due to late filing of their submission will NOT receive another letter if their submission is deemed deficient or rejected. Lenders should check their status periodically via the LASS inbox until the status reads "Audit Accepted".

If the lender submitted a response to a submission deemed deficient and it was not acceptable, they will not receive another letter. They should monitor their status via the LASS inbox until the status reads "Audit Accepted".

If the lender submits submitted a response to a rejected submission and it was not acceptable, they will not receive another letter. They should monitor their status via the LASS inbox until the status reads "Audit Accepted".

Q33. How do I contact HUD if I have technical or accounting questions?

A33. For technical questions contact the Office of Lender Activities and Program Compliance at (202) 755-7400 ext. 163; accounting/auditing questions, call (202) 755-7400 ext. 100.

You can also email any technical or accounting questions to LASS@hud.gov.