HUD: Contingency Plan for Possible Lapse in Appropriations 2018
January 3, 2019
Source: HUD (HUD Contingency Plan for Possible Lapse in Appropriations 2018 full version)
NOTE: At this time, HUD websites will not be updated until further notice.
Single Family Housing (Page 10)
•The Office of Single Family Housing will endorse new loans, with the exception of Home Equity Conversion Mortgages (HECM) and Title I loans, under current multiyear loan guarantee commitment authority in order to support the health and stability of the U.S. mortgage market.
•Endorsements that require assessment by an FHA underwriter will not be able to be finalized during a lapse in appropriations; however
o FHA will support manual endorsement actions including case number cancellations, case number reinstatement, case number transers, and resolution of the hold tracking queue;
o FHA will review Notice of Return violations on pre-endorsement loan requiring FHA staff intervention;
o FHA will answer questions related to the efficacy of specific borrower data in CAIVRS to avoid borrowers being denied credit due to incorrect information on FHA loans; and
o While FHA staff will not be available to process condominium project approvals under the HUD Review and Approval Process (HRAP), lenders will be permitted to continue processing condominium approvals under the Direct Endorsement Lender Review and Approval Process (DELRAP).
•In general, FHA systems (such as FHA Connection, CHUMS, etc.) will be operational; however, actions that require intervention by FHA personnel will either be delayed or suspended.
•The Office of Single Family Housing will maintain the minimum operations necessary to support FHA’s existing portfolio, operating both the FHA Call Center and the National Servicing Center’s Call Center, the payment of claims, servicing Secretary-held notes and mortgages (including making payments required under HECMs assigned to the Secretary-Held portfolio), addressing emergency concerns with HUD’s Emergency Homeownership Loan Program (EHLP), and ensuring the continuity of FHA’s REO disposition process and servicer loss mitigation activities.
•The Office of Single Family Housing will advise the Secretary on pending settlement agreements that are at risk due to delay and that address imminent threats to persons or property by recouping or preventing further loss of MMIF funds.
•The Office of Housing will continue to work on planned sales of defaulted notes, as required for the orderly termination of HUD’s fiduciary insurance and servicing obligations.
•The Office of Housing Counseling (OHC) will not have staff on board and will not process requests to draw down grant funds from the Line of Credit Control System (LOCCS).
•The Housing Counseling system (HCS) will be operational on a limited basis; however, actions that require intervention by OHC personnel will be either delayed or suspended.
•The housing counselor examination (housingcounselors.com) will be operational on a limited basis; however, actions that require intervention by OHC personnel will be either delayed or suspended. The housing counselor certification processs relies on FHA systems and will be operational on a limited basis; however, actions that require intervention by OHC or HUD personnel will be either delayed or suspended.