FHA Connection

FHA Connection Explained

The FHA Connection helps lenders provide their customers with the fastest and most efficient home loan processing service possible. Approved mortgage lenders who register for the FHA Connection have access to the United States Department of Housing and Urban Development’s (HUD) computer system.

Mandatory Usage

FHA Connection expedites the processing of HUD loans. Use of the system is actually mandatory for taking care of many issues related to originating, processing, and servicing loans on single family homes guaranteed by the FHA.

HUD does not accept telephone or mail inquiries for FHA loan details that can be retrieved through the secure electronic system. For example, case status updates and case numbers can be obtained only through FHA Connection.

Benefits

Since 1998, HUD has required lenders to utilize an electronic system for processing FHA insured home loans for single family dwellings. In order to expedite electronic processing of such records the agency created and made available a secure online system. The application is a powerful tool that allows approved lenders and FHA approved business partners to connect directly to HUD’s computer systems for a variety of purposes, including:

• Originating FHA loans for single family homes
• Servicing FHA loans for single family homes
• Updating lender record details
• Requesting case numbers
• Processing case queries
• Updating information on an existing case
• Reassigning appraisers
• Recording appraisal information
• Recording insurance information
• Making borrower changes
• Requesting duplicate certificates of mortgage insurance
• Submitting delinquency information
• Retrieving information about title approval
• Viewing details about mortgage insurance premium payments

Additionally, FHA approved business partners and HUD employees are able to access many functions and applications via the electronic system, including:

• Appraiser Review
• Underwriter Review
• Lender Assessment Subsystem (LASS)
• Multifamily Delinquency and Default Reporting System (MDDR)
• Physical Assessment System (PASS)
• Web-based Line of Credit Control System (eLOCCS)
• Active Partners Performance System (APPS)

Getting Started

Approved mortgage lenders and business partners may register for access via the program welcome page. Each eligible organization must designate an employee to act as the coordinator for its application. This individual is required to register as an application coordinator and handle the registration process for his or her company.

Once registered, additional employees will be able to receive access codes and begin using the system. Once the application has been processed and approved the next step is to learn to navigate and use the system. There is a help icon on each screen, which is beneficial for guiding users throughout the intricacies of the different modules.

Comprehensive online training materials developed by HUD are available for users at no charge. The web-based FHA Connection Guide provides details about how to get started with the system, as well as information on the many different resources and functions available through the system.

Training resources available in the online user training guide include:

• Quick start guide for getting started with the application
• Detailed training for use, administration, resources, and functions
• User assistance contacts
• Links to training materials
• ”What I Need to Know (WINK) tutorials for various processing needs
• Details on mortgage insurance premiums, billing, collection, and reconciliation
• Frequently Asked questions
• Comprehensive users guide
• Help function

Mortgage Processing Implications

Registered users are able to send and receive information via HUD’s secure computer systems. Mortgage industry professionals who utilize FHA connection have real time access to HUD’s computer system that is both direct and secure. This enables approved lenders to quickly obtain needed research and data. It also provides for an efficient means of updating FHA files..