1. I entered an address in FHA Connection and received an error message "DUPLICATE ADDRESS/HOLDS TRACKING" CONTACT HOC. What does this mean?
The Case Number Assignment staff will check in CHUMS to:

1. Verify whether another lender ordered a case number for the same property and if so you will receive a message to contact that lender for a transfer to that mortgagee.

2. If the case is a refinance, the Case Number Assignment staff will check to see if the case has been insured, then they will release it to await further processing.

3. Check "Holds Tracking" under the Case Number Assignment Menu to check the status of your request and/or Case Query to obtain the case number.

What do I do if I do not have a clear CAIVRS number on my borrower? Contact your local Homeownership Center for instructions to get a printout of the problem. Once the information is received the Underwriter needs to determine if he will approve the borrower and document the file based on his determination. Mortgagee Letter 97-2 delegates CAIVRS approval to underwriters.

3. Can a loan originally financed by FHA at a higher mortgage limit be refinanced at a limit that exceeds the new mortgage limits in areas where the mortgage limits have gone down?
A mortgage originated at a loan amount that is now above the statutory limit for the property location can be refinanced only under the streamline process up to the original loan amount (plus new MIP). This allows homeowners where the statutory limits have declined to still take advantage of lower interest rates.

4. What do I do if the CAIVRS is from a non-HUD agency?
Contact the appropriate agency listed on the HUD Webpage. Refer to Mortgage Letter 92-31 for contacts at those agencies.

5. When trying to order a case number number I received an error message "Originator Deleted" or "Originator Not Authorized To Processed This Case".
This means that you do not have authority to process loans. You need to check with your corporate office to see if you completed your certification and submit the appropriate information to Lender Approval and Recertification Division.

6. What does it mean when I get a message "Case Number Not On System"?
This message means that the case number does not exist or you are processing maybe a Master Conditional Commitment of which the Case Number and address were not entered into CHUMS. You need to fedex or mail a copy of the completed MCC to the appropriate Homeownership Center. Refer to Mortgagee Letter 98-13 for the address.

7. How do I process a request that has been assigned to me from another lender?
You need to check to see if you have an assignment letter in the binder transferring the loan to you and also you need to have that lender enter the assignment under "Lender Transfer" screen in the FHA Connection or its equivalent. If the lender cannot do the transfer, you can call the appropriate HOC for the transfer.

8. How can I process my loan when I get an error "Underwriter Not Employed?
You need to update the Underwriter Registry by entering a change on the underwriter in question and entering the first five digits of you originator id number in the employed area.

9. How do I get an MIC if I do a Case Query and see that my case has been endorsed, but I have not received the MIC?
You will need to check to see that the address for the mailing of the MIC is correct, and if not you will need to update the IMF Address Change on The FHA Connection or it's equivalent then order a duplicate MIC or email us regarding the MIC.

10. How can I tell what the NOR is for a binder that has been returned to me?
The binder should have the appropriate code on the NOR under "Reject Reason" on the NOR and this code is listed on the rear of the NOR. If there is no code, there should be an explanation on the NOR, and if not call the appropriate staff in the HOC.

1. How do I become an FHA approved lender?
A copy of the application is attached to Mortgagee Letter 96-64. The fee is $1,000. You may also contact Lender Approval and Recertification Division by email at HSG_Lender_Approval @hud.gov or telephone them at (202)708-3976.

2. How do I get branch approval for my company?
You need to register them on the IMF ADD Branch screen on FHA Connection. You also need to submit the appropriate fees to Lender Approval and Recertification.

3. How do I get approved to process loans in another jurisdiction?
You must provide us with the name of the company, territory that they would like to be approved in, the distance to the local HUD office, whether they will be doing the face to face interview, type of loans they will be insuring and whether you will be originating the loans or have a loan correspondent.

4. How do I become a Direct Endorsement Lender?
See hudclips for HUD Handbook 4000.4

5. How do I become a unconditional Direct Endorsement lender?
Once a lender is approved , they will be placed in a test case phase and will be required to submit cases for our review. If the cases are acceptable a Firm Commitment will be entered and the case may close. Upon satisfactory completion of the test case phase, the HOC will advise lender that they can close loans without prior HUD review. A minimum of (15) test cases are required. Five (5) test cases must be submitted for review on (203k's) for Direct Endorsement approval.

6. How do I get approved as an underwriter?
FHA no longer approves underwriters. Mortgagees must register their underwriters through the FHA Connection (https://entp.hud.gov/clas/). Refer to Mortgagee Letter 96-10.

7. An FHA approved Lender has a post closing department physically located in an separate facility from an approved branch. Does the Post Closing department facility have to be approved as a branch in order to get the MIC's mailed to them?
No, this office does not have to be approved. They will, however, need to show this office's mailing address as the "Endorsement" address for the approved offices. The MICs are automatically sent to the endorsement address and it can be different from the approved branches or home offices.

8. An FHA approved lender has a Facility which houses the offices of their Vice President, Training Staff and Secondary Market Person. They do not originate or process from this facility. Does this facility have to be approved as a branch?
No.

9. In the Application process can a lender get approved and at the same get its branches approved?
Yes: If so can they make out one check to cover all of the application fees? Yes

1. Is sweat equity acceptable as a source of the borrower’s cash requirements? What documentation is required?
Yes, sweat equity may be credited towards the borrower’s cash requirements. The lender must document that the borrower had the ability to complete the work, the estimated value of the work, and the performance of the work. There can be no cash back to the borrower in these transactions. Reference: 4155.1 REV-4 CHG 1, paragraph 2-10 O.

2. Can a streamline refinance be done on a 203k loan? Is there an up-front MIP on such loans?
Yes, 203k loans are eligible for streamline refinances, provided that all, escrow funds have been extinguished. The 203k loan will be refinanced into a 203b loan, with the same required up-front and monthly MIPs. Reference: 4155.1 REV-4 CHG 1, paragraph 1-12 D. 16F.

3. Can a borrower be deleted from an FHA Streamline Refinance loan?
Yes, if there are circumstances indicating removal of a mortgagor. The remaining owner-occupant must demonstrate she/he has made the mortgage payments on their own for the previous six months.

4. Can a conventional mortgage be refinanced with an FHA loan with maximum financing?
Yes, if the borrower’s is credit qualified and an appraisal is performed, and there is no cash out to the borrower from the transaction.

5. Can a borrower obtain secondary financing to help pay the down payment on an FHA loan?
Yes, but you will need to check the source of funds. Depending on the source either all or part of the cash requirement may be paid with no cash back to the borrower at any time. (4155.1 Rev 4, CHG 1, Para 1-13).

6. Are Mortgage Credit Certificates-MCC’s acceptable to use on FHA loans?
Yes, lenders may use the credit as a deduction from the monthly PITI payment. The credit may not be added to gross income. (Reference Mortgagee Letter 95-7)

7. Are test cases necessary to obtain Unconditional Direct Endorsement?
The fifteen test cases requirement is regulatory. All lenders must do the full fifteen cases. Streamline refinances are NOT counted toward the fifteen cases.

8. How should evidence of First Time Homebuyer-FTB be documented?
Lenders must follow the procedures outlined in Mortgagee letter 96-48. Even when the counseling is provided by HUD staff, the lender is required to submit the appropriate certification referenced in the Mortgagee Letter using Attachment C of the Mortgagee Letter as the Certification.

9. Can prepaid expenses be included in the 3% Statutory Investment requirement?
Prepaid expenses may NOT be included in the borrower’s required investment. ML 98-29.

10. Can a borrower’s closing costs be part of the Statutory Investment Requirement?
FHA allowable closing costs can be used to meet a portion of the borrower’s statutory required investment. ML98-29