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Urgent Update: Procedures for FHA Insured Loans

 

URGENT NOTICE

NEW PROCEDURES FOR FHA CLOSINGS

February 4, 2004

To: All Originating Agents

Subject: New Procedures for FHA Insured Loans

As instructed in an email dated March 10, 2004, all FHA case numbers should be ordered using VHDA’s ID #545210-9999. If case numbers are ordered using the Originating Agent’s FHA ID number, a Mortgage Records Change must be submitted by the Agent in the FHA Connection within 15 days after closing. VHDA cannot transfer the case number if it was ordered using the Agent’s ID number. Details of HUD’s requirement can be found in Mortgage Letter 2003-17.

VHDA continues to experience an excessive number of MIC’s insuring the Originating Agents rather than showing the insured as VHDA. In these instances, VHDA has funded the loan, but is not insured. Therefore, effective immediately, a copy of the "Case Query" or "Case Transfer" printed from the FHA Connection reflecting VHDA as the Insured must be provided on every FHA loan prior to disbursement. Failure to provide either of these documents with the Underwriting Approval Notice or the Request for Disbursement could delay loan disbursement from VHDA.

PLEASE FORWARD THIS MESSAGE TO THOSE INDIVIDUALS IN YOUR ORGANIZATION WHO ARE RESPONSIBLE FOR THESE PROCEDURES TO AVOID DELAYS IN LOAN CLOSINGS. IF THE MIC ON FHAS LOANS DOES NOT REFLECT VHDA AS THE INSURED, THE LOAN WILL BE RETURNED TO THE ORIGINATING AGENT FOR PURCHASE.

If you have any questions regarding this matter, please contact Sheila Pollard at 804-343-5976 or sheila.pollard@vhda.com.

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