HUD Releases Recertification Deadline For FHA Mortgagees

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Explore:  FHA HUD Mortgages

On March 26, HUD presented a webinar regarding upcoming changes to the online system used by FHA mortgagees to certify, pay annual fees, and report other information. Specifically, the Lender Electronic Assessment Portal (LEAP) will be replacing LASS, Lender Approval and Cash Flow Account Set Up in FHA Connection. Per Mortgagee Letter 2013-42, due to the online system being unavailable during the transition, the recertification and annual fee requirement for mortgagees with Fiscal Years ending on December 31, 2013, has been extended until June 9, 2014, thirty-days following the LEAP “Go-Live” date of May 9, 2014. All other mortgagees will have 90 days after their fiscal year end to submit recertification. Among other changes to the recertification process, LEAP will require mortgagees to indicate which certifications they cannot complete and submit supporting documents specific to each instance in which the mortgagee cannot recertify. In addition, FHA is consolidating Title I and II ID numbers for all mortgagees that share a common Tax Identification Number. The first phase of the consolidation will take place on Monday, March 31, 2014, and will result in all mortgagee profile information and loan history for existing Title I IDs to be transferred to the new IDs. Additional information, including corporate officers, EFT Account numbers and Historical Approval dates will be consolidated on LEAP’s “Go-Live” date on May 9, 2014. Finally, LASS will not be available after March 31, and any pending recertification or filing in LASS will be inaccessible. However, FHA employees will have access to LASS and can work with mortgagees on an individual basis to complete those filings. During an April 18 to May 9 transition period, mortgagees must request changes to their profiles via hard copy requests to HUD’s Officer of Lender Activities and Program Compliance.

Topics:  FHA, HUD, Mortgages

Published In: Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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