The Federal Housing Administration (FHA) made changes to its FHA Connection System to make it more efficient for mortgagees. The new functionality allows lenders to process case cancellations and reinstatements through the case cancel/reinstate screen, as well as through the Business to Government (B2G) connection in the future.
“This new functionality eliminates the requirement to submit most requests to the FHA Resource Center for processing,” the agency stated. “The new functionality in large part eliminates an unnecessary manual request submission process by providing lenders with increased flexibility and efficiency to manage their case processing needs in FHAC without FHA assistance.”
If an exception is identified that requires FHA staff intervention, mortgagees will be directed to submit the request to the FHA Resource Center using the relevant template from its single-family case processing requirements web page, to be made available Aug. 14. Exceptions requiring manual entry can be case cancellations where the upfront mortgage insurance premium on the case was paid or the case was endorsed. For case reinstatements, it would be when the case was automatically canceled.
An optional 90-day transition period for mortgagees to get used to the new process will begin Aug. 14. On Nov. 7, it will become required for mortgagees to use the new function. The functionality will eventually be available through the B2G connection, and those lenders will be notified of implementation dates and when the B2G guide will be updated to include the function.
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