HUD Publishes Frequently Asked Questions in Case of Government Shut Down

Frequently Asked Questions for FHA Clients during a Government Shutdown:

The following HUD/FHA Information Resources will be available during a government shutdown:

·HUD/FHA Resource Center: (800) 225-5342

·HUD/FHA National Servicing Center: (877) 622-8525

·HUD’s primary internet site:  http://www.hud.gov  (but will not be updated)

·The Resource Center FAQ site:  http://www.fhaoutreach.gov/FHAFAQ

HUD/FHA staff will not be available to respond to case specific questions.  All questions that cannot be answered by contract staff at the Resource Center and the NSC will be deferred until the government re-opens.

Please be aware that HUD Staff will not be available to process incoming mail during a government shutdown so business partners should suspend shipment of documents and approval packages during the term of the shutdown.  The following are examples of such documents:  Submission of FHA Test Cases, HRAP condominium approval packages, NAID requests, etc.  

 

1.   Origination:

Q: Will the government shutdown affect the processing or closing of FHA-insured loans?

A: The shutdown may delay the processing or closing of an FHA-insured loan dependent upon where the loan is in the process.  As noted below, FHA will not endorse closed loans or be able to provide case specific underwriting support.  All FHA underwriting and processing requirements remain in force during the government shutdown and no loan may proceed that cannot fulfill those requirements.

Q: Will Lenders have access to FHA Connection?

A: Lenders will be able to access FHA Connection, however FHA Connection interfaces to other systems may not be available, or if available these other systems may not be fully supported so FHA Connection processes may not be fully functional. At this time we do not have complete information on the potential impact on some FHA Connection functionality. Below questions and answers reflect our best effort at defining what will be available.

Q: Can a lender obtain a new FHA case number?

A: Yes. Lenders will be able to obtain a FHA case number from the FHA Connection.  Please note that all FHA underwriting and processing requirements do remain in force on loans originated during the government shutdown regardless of system limitations during the shut down period..

Q: Will Credit Alert Interactive Voice Response System (CAIVRS) be available?

A: CAIVRS access may not be available to determine if a borrower has a delinquent federal debt so that verification process may not occur when requesting a case number.

Q: Will FHA TOTAL Scorecard be available for lenders?

A: Yes. FHA TOTAL Scorecard will be available within systems.  As noted above,  all FHA underwriting and processing requirements do remain in force on loans originated during the government shutdown.

Q: Will lenders be able to get password resets for FHA Connection?

A: Lenders will be able to continue to utilize the automated password reset options on FHA Connection, but resets that require FHA employee direct assistance will not be available.

Q: Will FHA insure any loans during the government shutdown and does this also impact lenders with Lender Insurance (LI) approval?

A: No.  FHA loans will not be endorsed during the government shutdown period.  This also includes FHA and Lender Insurance authority as FHA systems will not be enabled to process LI approvals during a government shutdown.

Q: Can a lender submit loans for approval if the lender is in test case status?

A: No. FHA staff will not be available to underwrite and approve loans.

Q: Can lenders submit packages for condo approvals?

A: DELRAP approvals can continue to be processed, but HRAPS cannot be processed and should not be submitted for processing during the government shutdown.

2.   Servicing:

Q: Will lenders be able to submit FHA Mortgage Insurance Premiums during a government shutdown?

A:   Upfront Premiums –Lenders will be able to submit UFMIP for approximately 10 days (specific end date will be forthcoming).

·      Monthly Premiums - Yes. Lenders are required to submit monthly MIPs during the shutdown.

Q: Can lenders file a claim and convey a property if there is a government shutdown?

A: Yes. Lenders can file a claim and convey a property. The properties will be assigned to an Asset Manager and listed for sale. Claims will be paid.

Q: Can lenders submit extension and variance requests through the EVARS System?

A: Yes.  Lenders will be able to continue to submit extension or variance requests through EVARS.  However, FHA staff will not be available to process requests on forward mortgages.  Requests will remain in the system until the government reopens.  Please do not submit duplicate requests.

Please note that responses to the following email boxes will not be provided until the government re-opens:

hsg-lossmit@hud.gov            sfdatarequests@hud.gov       extension_requests@hud.gov

hecmhelp@hud.gov                mcmnsc@hud.gov

3.   REO/HUD Home Sales:

Q: Will I be able to place a bid on a HUD-owned property via the HUD Home Bid site during the shutdown?

A: Yes. FHA contractors will handle the sale of HUD Homes and the bidding site at: http://hudhomestore.com/HudHome/Index.aspx  will be available and maintained during the shutdown.

Q: Who can I notify about a health or safety issues on a HUD-owned property?

A:The staff at the FHA Resource Center can provide contact information for contractors responsible for the maintenance of HUD-owned properties.

Q: Will HUD Broker Name Address Identifier (NAIDs) applications be processed?

A: No. Name Address Identifier applications will not be processed during the government shutdown.

4.   Lender Approval/Monitoring:

Q: Will FHA’s partners be able to submit routine compliance reporting to FHA-managed systems?

A: No, in most cases.  Due to limited system availability, electronic compliance reporting will be suspended for some programs.  Once reporting systems are back online, FHA will require all partners to submit compliance data for the shutdown period retroactively.

Q: Can lenders submit applications to become an FHA approved lender?

A: No. FHA will be unable to accept lender applications during the government shutdown. 

Q: Will FHA recertify a lender’s request to renew their FHA approval?

A:No. FHA will not recertify any lenders status as an FHA approved lender during the government shutdown.

Q: Will lenders be able to submit audited financial statements to the Lender Assessment Subsystem (LASS)?

A:No. LASS will not be available during a government shutdown.

5.   Housing Counseling:

Q: Will the Housing Counseling System (HCS) be available to HUD-approved agencies

A: The Housing Counseling System (HCS) will not be available.  Consequently, counseling agencies will be unable to update agency profile information, submit activity data, or otherwise utilize the functionality in HCS.  Once HCS back online, FHA will require all counseling agencies to submit activity data for the shutdown period retroactively.

Q: Will clients be able to utilize Housing Counseling search engines? 

A: The HUD.GOV counseling agency search site and toll-free search option will be available during the shutdown.  However, no updates to the underlying data will be available until the government resumes normal operations.

Q: Will HUD-approved agencies be able to access HUD grant funds through the LOCCS System?

A: While the LOCCS system should be functioning, there will be no HUD staff available to approve requests for disbursements.  Consequently, no grant disbursements will occur during a shut down.

Q: Can counselors continue to take on-line courses through EClass?

A: Yes.  This web-based loss mitigation training program will be available for use.  However, non-FHA approved Housing Counseling Agencies cannot receive approval to access EClass until the government reopens