Single Family Origination and Servicing Functions Defined - Quick Start Guide

Single Family Origination and Single Family Servicing functions are defined in order of appearance on the FHA Connection menu.

Single Family Origination Functions

Case Processing

Case Processing allows online processing of an FHA case from initial application through endorsement.

  • Case Number Assignment allows users to:
    1. Establish a New Case in the Computerized Homes Underwriting Management System. The Validate Borrower/Address for Case Number Assignment function in this process allows input of borrower and address information for validation purposes.
    2. Update an Existing Case allows a lender, its agent, or sponsor to correct case information prior to endorsement of the case.
    3. Use Holds Tracking which allows a lender to monitor cases that were held during Case Number Assignment processing due to:
      • duplicate address
      • HOC review of lender
      • inability to access refinance authorization information
      • inability to validate borrower(s) information.
      Holds Tracking also enables a lender to determine if subsequent changes to borrower information (e.g., using Borrower/Address Change) failed borrower validation.
  • Appraisal Logging allows a lender to record appraisal information if it is a prerequisite to insurance. Appraisal information may be corrected prior to endorsement.
  • Insurance Application allows a lender to add, review, or change insurance application information for a case prior to endorsement. For lenders participating in the Lender Insurance (LI) program, Insurance Application is also used to endorse a case (excluding HECM cases).
  • HECM Insurance Application allows a lender to review, add, or change Home Equity Conversion Mortgage (HECM) information for a case prior to endorsement.
  • 203k Case Close-Out allows a lender to close out an endorsed 203(k) case by electronically certifying that the required documents have been reviewed or verified for accuracy.
  • Appraiser Reassignment allows a lender to change the initial appraiser assignment prior to the recording of the appraisal on the case.
  • Binder Selection (available only to lenders approved for the Lender Insurance (LI) program) is used by LI lenders to get a list of case binders that were requested, received (including binders for cases awaiting endorsement), or not accepted.
  • Borrower/Address Change allows a lender to review and update borrower details and property information prior to endorsement.
  • CAIVRS Authorization lists available information on a potential borrower's default, claim, judgment, or foreclosure on a past government loan or guarantee.
  • Case Query provides case details including mortgage appraisal, closing, upfront MIP, insurance or general case information.
  • Case Transfer allows a lender who is currently assigned to the case to transfer the case to a new lender, sponsor, or both.
  • Conditional Commitment allows the originator or sponsor/agent to view and print the Conditional Commitment form issued by HUD for a HUD-processed case (not used for DE cases).
  • Firm Commitment allows the originator or sponsor/agent to view and print the Firm Commitment form issued by HUD for a DE test (preclosing) case or a HUD-processed case.
  • Inspector Assignment allows assignment or reassignment of inspectors, addition and update of compliance inspection information (inspector ID and date), and deletion of the inspector and compliance inspection information.
  • MIC/NOR List allows lenders to request a list of either MIC or NOR cases. These are cases that were recently:
    • endorsed for mortgage insurance and issued a Mortgage Insurance Certificate (MIC)
    • not endorsed for mortgage insurance and issued a Notice of Non-Endorsement (also known as a Notice of Return (NOR)).
  • Mortgage Credit Reject allows a lender to add, update, delete, or view borrower mortgage credit rejection information for a nonendorsed DE case. This information is reported when an FHA-approved underwriter determines that a borrower poses a credit risk and is ineligible for a mortgage.
  • Mortgage Insurance Certificate is used (after a case is endorsed for FHA insurance) to view and print a Mortgage Insurance Certificate (MIC). This serves as evidence of FHA insurance on the mortgage loan.
  • Notice of Return allows authorized HUD personnel to specify the reasons(s) a mortgage loan (case) cannot be endorsed for FHA insurance and to issue a Notice of Return (NOR). To resolve the NOR, the originator and/or sponsor can use Notice of Return to view and print the NOR.
  • Post-endorsement Borrower SSN Correction allows loan originators, sponsors, holders, or servicers to use the FHA Connection to correct borrower SSNs after endorsement. The case must be an active case in the Single Family Insurance System (SFIS).
  • Refinance Authorization allows lenders to access new refinance information (including refinance credit), and update the project closing date, contact name, or phone number. (Not applicable to HECM refinance cases.)
  • Refinance Credit Query is used to determine the refinance credit available for an active FHA-insured loan (case) that is being refinanced. It provides 30-day and 60-day calculations based on the projected closing date of the new loan. (Not applicable to HECM refinance cases.)

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FHA Approval Lists

The functions on the FHA Approval Lists menu provide access to HUD lists and information required in loan processing.

  • 203k Consultants is used to search for 203k consultants by ID, SSN, name, city, or state.
  • ADP Codes presents a table of ADP Codes used in FHA home mortgages. It offers users a single source to consult to view a listing of many commonly used codes according to: applicable section of the National Housing Act; description (name); specific type of case, e.g., Veterans Affairs Certificate of Reasonable Value (VA/CRV) or Direct Endorsement (DE); and FHA Insurance Fund, e.g., General Insurance. For guidance in selecting an ADP Code, see ADP Code Selection by Lender.
  • ADP Code Selection provides assistance in selecting the correct ADP Code. Users input descriptive information about the specific case, e.g., case type, amortization type, or applicable Housing program.
  • Appraiser Selection by Lender allows retrieval of basic statistical information about appraisers that lenders have selected to perform appraisals for FHA cases during the most recent quarter. The report can be requested for a specified lender name or for all lenders in a specified state or city. The results provide a breakdown of the number and percentages of appraisals completed by minority, nonminority, male, and female appraisers for the lender in the most recent quarterly reporting period.
  • Appraisers allows search for FHA-approved appraisers included on HUD's Appraiser Roster by a specific appraiser based upon the appraiser license number, or search by name, geographic location, FHA examination results, race, gender, status, and/or Appraiser Qualifications Board (AQB) certification status.
  • Condominiums allows search for condominium projects by location, name, or status.
  • Distribution of Appraisals retrieves appraiser and appraisal-related statistical information by state, gender, race, lender ID, or lenders with 100-plus cases.
  • GSA Lists links you to the Excluded Parties Listing System (EPLS) maintained by GSA. EPLS allows users to retrieve lists of people/organizations that are excluded from doing business with the government.
  • HECM Servicers provides the lending institution, address, name, and contact information of Home Equity Conversion Mortgage (HECM) Servicers.
  • Housing Counseling Agencies links to lists of approved HECM housing counseling agencies by state.
  • Inspectors allows search for inspectors by location, ID, name, or status.
  • Limited Denial of Participation is a list of parties excluded for a specific time period from participation in a HUD program area. This link goes to the HUD Enforcement Center page which provides the Limited Denial of Participation and Voluntary Abstention List.
  • Mortgage Limits displays the FHA maximum mortgage limits by state, county, Core Based Statistical Area (CBSA) (referred to as MSA (Metropolitan Statistical Area)), and last update for high-cost urban and non-urban areas. The results also include a summary of the current basic standard FHA mortgage limits, high-cost area FHA mortgage limits, and Section 214 National Housing Act FHA mortgage limits.
  • Non-Profits allows search for nonprofit agencies by TIN, name, participating state, or authorization.
  • Planned Unit Developments (PUDs) allows search for PUDs by location, PUD ID, name, or status.
  • Underwriter Registry allows a lender to add, change, or terminate an underwriter.
  • Underwriters allows search for underwriters employed by the requesting mortgagee by ID, name, location, employment date, and/or status.
  • Zip Codes allows search for zip codes by Field Office, state, city, county code, or county name. It also provides search capability for jurisdictional and lender option Field Offices that correspond to a known zip code.

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Origination Reports

The Origination Reports menu provides lenders access to HUD-generated reports. Lenders view only their own reports. The two categories of report are:

  • Mortgagee Performance Report which provides current and historical monthly statistics generated by HUD on direct endorsement lenders' underwriting, appraisal, and closing performance. The report provides summary information based on post-endorsement technical reviews.
  • Origination Reports provide status information. There is a two-stage request and retrieval process. Reports are:
    • chosen via Origination Reports Request which allows you to select a report type and enter criteria for the request you wish to receive. A report can be requested for any period of time up to 90 days from beginning date to ending date. Only the most current 13 months of information is available.
    • retrieved via Origination Reports Retrieval which allows you to retrieve the request online on the next business day.
    • Reports cover MIP Not Paid, MIP Premium on Non-Endorsed Cases, Mortgagee Endorsement Status, Mortgagee Pipeline, and Underwriter.
  • Underwriter Activity is used to review a summary of the last officially completed level of review for a case (loan). If only the initial level of review is completed, information is not displayed until the HOC specifies that all levels of review are completed for the case. Lenders have access to reviews of cases (loans) underwritten by their underwriters. Underwriters have access to their own reviews. Provided are ratings for one or more underwriting categories and, if applicable, deficiency codes (technical review reason codes).

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Upfront Premium Collection

Upfront Premium Collection provides detailed information about upfront mortgage insurance premium (MIP) payments. Its menu options and their descriptions follow:

  • Message Board provides announcements about Upfront Premiums, including information on the status of options available in Upfront Premium Collection functions.
  • Case Master Summary allows you to request current detailed summary information on upfront MIP payments for a specific upfront case.
  • Payment Details allows you to display information about each Upfront MIP payment received for a specific upfront case.
  • Case History allows you to display a detailed chronological list of every upfront premium transaction and/or event that occurred on a specific upfront case.
  • Refund Details allows you to display information about each upfront premium refund that was created for a specific upfront case.
  • Refinance Exception Report allows you to request a list of refinance cases that received an upfront premium payment and either have incorrect refinance information or have no refinance credit available to put toward the new case. Report results can be generated for all branches of a lender or for one specific branch.
  • Penalties Due Report allows you to list upfront cases with outstanding late charges and/or interest due on upfront premium payments. Report results can be generated for all branches of a lender or for one specific branch.
  • List of Unendorsed Cases allows you to list cases that received an upfront premium payment but are not yet endorsed. Report results can be generated for all branches of a lender or for one specific branch.
  • Disbursed Refunds Report displays information about upfront premium refunds that were disbursed within a specified date range. Report results can be generated for all branches of a lender or for one specific branch.

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Single Family Servicing Functions

Claims Processing

Claims Processing allows lenders to submit particular claims to HUD for single family mortgage insurance benefits and to review the status of claims previously made to HUD.

  • Claims Input may be used to enter claims and transmit them to HUD. Use Claims Input for:
    • Claim Type 01 (Conveyance or Deed in Lieu), Parts A (General Information) and B (Fiscal Data)
    • Claim Type 07 (Pre-foreclosure), Parts A (General Information) and B (Fiscal Data)
    • Claim Type 31-33 (Loss Mitigation):
      1. 31 Special forbearance incentive
      2. 32 Loan Modification incentive
      3. 33 Partial claim (subordinate mortgage)
  • Claims Input Summary displays claims and comments input on a given day by a user until entered (at night) into HUD's Claim System. Then, two days following transmission, lists status of claim.
  • Claim Status provides information about paid and suspended single family mortgage insurance benefits claims.
  • Title Approval Status provides current information on completed title approvals for requested cases.

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Delinquent Loans

Delinquent Loans allows lenders to register to use the system to report delinquent cases and to review delinquent case status, via:

  • Delinquent Loan Reporting Registration
  • Delinquent Loan Reporting
  • Delinquent Loan Status Request

HECM Reports

HECM Reports provides a report for the specified servicer that includes the MIP, late, interest, and initial fee amounts as they relate to the servicer's HECM cases.

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Monthly Premiums

Monthly Premiums provides information on cases in your lender portfolio, monthly mortgage insurance premiums due, and any discrepancies in the billing-payment process. The functions provide the following capabilities or information:

  • Portfolio allows you to to process a detailed report on case(s) being serviced, including case information such as monthly premium, bill type, and servicer transfer date.
  • Lender Notification provides information on errors occurring during monthly premium processing, e.g., a monthly premium payment that was remitted for:
    • another lender's case by you or on your case by another lender
    • a case that was not billed, e.g., a nonendorsed case or one not requiring monthly premium payments
  • Case Detail provides current case information. If the case has not been insured, case information is retrieved from the Computerized Homes Underwriting Management System (CHUMS/F17). If the case has been insured, case information is retrieved from the Single Family Insurance System (SFIS/A43). Information about the last three payments is displayed if monthly mortgage insurance premiums have been paid to the Single Family Premium Collection Subsystem - Periodic (SFPCS-P/A80B).
  • Advance Notices (available by the 10th day of each month) provides information about monthly premium changes for cases in the servicing lender's portfolio having an annual premium anniversary due date the following month. Advance Notices also includes cases endorsed the month before the report file was created, transferred to the servicing lender's portfolio the month before the report file was created, and that will no longer be billed for monthly premium (in a one-time report of 0.00 premium).
  • Billing (available by the 17th day of each month) provides the monthly premium, late, and interest charges for cases in the servicing lender's portfolio that require monthly premium payments.
  • Reconciliation (available by the 17th day of each month) provides discrepancies between what was billed in the prior billing period and what was paid (or is still owed) as of the current billing period. It also includes current period billing information, e.g., any premium, late, and interest charges assessed in the current billing period, as well as charges assessed in the last billing period.
  • Refund Transactions provides information about case refunds that were created or had a change in status during the current month. It is cumulative and is updated weekly (available every Monday). The complete Refund Transactions report file for the month is available on the second day of the following month.
  • Reallocation Transactions provides information about funds that were reallocated to and/or from a servicing lender's cases. Funds from one case (source case) may be redistributed to up to three cases (target cases) per reallocation transaction. The Reallocation Transactions report file is cumulative and is updated weekly (available every Monday). The complete Reallocation Transactions report file for the month is available on the second day of the following month.

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Mortgage Record Changes

Mortgage Record Changes allows change of case servicer or holder information, recording an assumption, terminating insurance, and adjusting or resetting the month and year that the last monthly MIP is assessed. Use:

  • Servicer/Holder allows processing of a servicer and/or holder transfer for a selected case
  • Mortgage Assumption allows processing of a mortgagor assumption for a selected case.
  • Insurance Termination allows processing of mortgage insurance termination for a selected case
  • Monthly MIP Cancellation allows change of the month and year that the last monthly insurance premium (MIP) is assessed (premium due the first of the following month). Refer to the Help on this page for details.
  • Monthly MIP Reset allows a user to reset the final bill date back to the computed value if the final bill date was changed in error.

Mortgage Calculator

Mortgage Calculator may be used to generate a billing schedule for new and existing FHA insured cases.

Mortgage Servicing Data Quality System

Mortgage Servicing Data Quality System can be used to find results of transfers, assumptions and termination transactions sent electronically to the Single Family Insurance System for a specific case, time period, or resulting error code. It can also be used to obtain a detailed description of a particular error code and how to resolve the error and to view the results of pre-endorsement transfer transactions sent via EDI, FHA Connection (FHAC), or FHAC Business to Government (B2G) within a specific time frame.

Lender Query by Case Number

Lender Query by Case Number is a tool to assist lenders in data reconciliation and validation. It allows query by case number and original mortgage amount (both required fields). The current servicer and holder for a case may view some 150 case information fields; users who do not hold the case in their portfolio view only the public fields.

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