FHA CONNECTION GIVES LENDERS THE ABILITY
Washington -- The Department of Housing and Urban
Development (HUD) today unveiled an interactive computer system
that will give lenders the direct online information they need to
process a loan for FHA mortgage insurance.
TO PERFORM TASKS ON THE INTERNET
The new technology, called FHA Connection, gives lenders the
ability to perform a number of tasks on the Internet, such as
reassign an appraiser, verify a borrower's credit through an
interactive voice-response system, and add, change, or terminate
"This is FHA's most important advance in technology since
1985," said Assistant Secretary/FHA Commissioner Nicolas P.
Retsinas. "This system moves FHA to the forefront of electronic
commerce. It will provide our lenders with easy and direct
online access to the information they need for loan processing,
and put it in a format that is easy to read and understand."
Retsinas said the new system "fits with President Clinton's
mandate to develop and implement strategies to make the Federal
government more efficient, more responsive to customers, and less
costly to taxpayers."
To access FHA Connection, lenders need to obtain authorized
identification from FHA. Once HUD reviews and approves the
lender's request for an FHA Application Coordinator ID -- which
lets a lender update user information and execute authorized
functions -- a letter verifying the authorization will be sent to
the lender's chief executive officer. Lenders will be given
final approval to access FHA Connection after the CEO reviews and
approves the letter.
FHA Connection will be implemented in three phases. First-
phase functions are available to lenders. These include:
underwriter registry; loan data; appraiser reassignment; authorization
to access the Credit Alert Interactive Voice
Response System (CAIVRS); case query; and lender/sponsor
Phase two, which will be completed by July 28, adds case
number assignment; insurance request; inspector assignment; case
cancellation; refinance authorization; and reverse mortgage
insurance. The third phase will be implemented by October 20 and
will allow lenders to access FHA's approval lists, including
appraisers, condominiums, inspectors, and mortgage limits.
Content Archived: January 20, 2009