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HUD: FHA Single Family Housing Operations and Systems Availability During Government Shutdown

Investor Update
December 26, 2018

Source: HUD (FHA INFO #18-52 full version)

As a result of the Federal Government shutdown due to a lapse in appropriations, until further notice the Federal Housing Administration’s (FHA) Office of Single Family Housing and its mortgage insurance program will be operating with limited services. As was the case in previous shutdowns, under a lapse in funding, FHA’s actions and decisions about which operations continue, or not, are governed by the Constitution, statutory provisions, court opinions, and Department of Justice (DOJ) Opinions, which provide the legal framework for how funding gaps and shutdowns have occurred in recent decades.

While some services will continue to be operational, please note that across the board, the services that remain available during the shutdown will have significant impacts to customer service and/or limited functionality.

Please see the information below for an overview of the business impacts specific to the Office of Single Family Housing and its Single Family mortgagees, Title I lenders, and other stakeholders in FHA single family transactions. Full descriptions and details can be found in the Department of Housing and Urban Development’s (HUD) Contingency Plan for Possible Lapse in Appropriations document posted on HUD.gov.

The FHA Resource Center’s online FAQ site has been updated to include additional information about operations and systems availability during the shutdown (keyword “shutdown”).

Customer Service

The following will be available for general inquiries during the shutdown, but with limited staff assistance available, longer wait times for assistance, and limited ability to answer case-specific questions:

  • The FHA Resource Center:
  • The Resource Center’s online FAQ site will be available, but will not be updated for the duration of the shutdown;
  • By email at answers@hud.gov; and
  • By phone at (800) 225-5342.
  • The FHA National Servicing Center, by phone at (877) 622-8525.

Insurance Endorsements

  • Insurance endorsements will continue for Title II forward mortgages only; and
  • Insurance endorsements will not be made for Home Equity Conversion Mortgages (HECM) or Title I loans for the duration of the shutdown.

Lender Certification, Monitoring, and Quality Assurance Processes

The following process will be available during the shutdown, but with limited staff assistance available, and longer wait times for assistance:

  • Notice of Return violation reviews on pre-endorsement loans.
    The following processes will be unavailable for the duration of the shutdown:
  • Annual Recertification: lenders must continue to complete the required annual certification process in accordance with existing policy in the FHA Single Family Housing Policy Handbook 4000.1 (SF Handbook); however, the submission will not be reviewed or approved for the duration of the shutdown;
  • Application for FHA Lender Approval: applications may be submitted in accordance with existing policy in the SF Handbook; however, the submission will not be reviewed or approved for the duration of the shutdown;
  • Request for Post-Approval Changes: may be submitted in accordance with existing policy in the SF Handbook; however, changes requiring FHA action will not be reviewed for the duration of the shutdown;
  • Requests for Supplemental Mortgage Authority: may be submitted in accordance with existing policy in the SF Handbook; however, the submission will not be reviewed for the duration of the shutdown; and
  • Quality Assurance processes (Loan and Lender Monitoring Activities) will not take place for the duration of the shutdown.

Other Participants in FHA Transactions

The following processes will be available during the shutdown, but with limited staff assistance available and longer wait times for assistance:

  • FHA Appraiser Roster look-up functionality;
  • FHA 203(k) Consultant Roster look-up functionality; and
  • FHA-approved Non-Profit look-up functionality.

The following processes will be unavailable for the duration of the shutdown:

  • FHA Appraiser Roster new application, reinstatement, and recertification processing;
  • FHA 203(k) Consultant Roster new application, reinstatement, and recertification processing; and
  • Non-Profit new application, reinstatement, and recertification processing.

Pre-Endorsement Loan Processes

The following pre-endorsement loan processes will be available during the shutdown, but with limited staff assistance available and longer wait times for assistance:

  • Condominium Project approvals under the Direct Endorsement Lender Review and Approval Process (DELRAP);
  • Manual endorsement actions: case number cancellations, reinstatements, and transfers; resolution of the Holds Tracking queue; and
  • TOTAL Mortgage Scorecard evaluations.

The following processes will be unavailable for the duration of the shutdown:

  • Condominium Project approvals under the HUD Review and Approval Process (HRAP); and
  • Test Case Loan Submission.
  • HECM Collateral Risk Assessment issue assistance. If the appraisal was completed under the Interim Protocols, the appraisal and loan processes must continue under the Interim Protocol path. If the appraisal is subject to the Fully-Automated Protocols, it must follow those processes through endorsement.

Servicing, Claims, and Asset Management
The following servicing, claims, and asset management business processes will be available during the shutdown, but with limited staff assistance available and longer wait times for assistance:

  • Submissions of upfront Mortgage Insurance Premiums (MIP) for new endorsements (note that lenders are required to submit monthly MIP during the shutdown);
  • MIP refunds to borrowers;
  • Claims filing and payments;
  • Conveyance of properties;
  • HECM payments to borrowers;
  • HUD Real Estate Owned listings; and
  • Servicing of HUD Secretary-held notes and mortgages.

The following processes will be unavailable for the duration of the shutdown:

  • HUD Broker Name and Address Identification Number (NAIDs) application processing; and
  • Extension and variance processing in the Extensions and Variances Automated Requests System (EVARS) by the National Servicing Center.

Technology Systems

The following systems will be available for use, but with limited capability for actions that require FHA staff intervention:

  • FHA Connection (FHAC), including obtaining an FHA Case Number;
  • Loan Review System (LRS);
  • Neighborhood Watch Early Warning System (SFNW); however, data will not be updated for the duration of the shutdown;
  •  Single Family Insurance System (SFIS) and Insurance Claims Subsystem (CLAIMS);
  • Lender Electronic Assessment Portal (LEAP); however, FHA will be unable to approve FHA applications, perform lender certifications, or review or process any audited financial statements;
  • Credit Alert Verification Reporting System (CAIVRS); however, FHA may not be able to ensure that the information contained in the system is up-to-date;
  • Electronic Appraisal Delivery (EAD) portal; available for existing lender users only;
  • Electronic Data Interchange (EDI);
  • Extension and Variance Automated Requests System (EVARS): requests may be submitted; however, FHA staff will not be available to process requests;
  • Home Equity Reverse Mortgage Information Technology (HERMIT);
  • Single Family Default Monitoring System (SFDMS)
  • P260 Lender Portal; and
  • Title I Insurance and Claims System (TIIS).

The following FHA system will be unavailable for the duration of the shutdown:

  • Electronic Appraisal Delivery (EAD) portal onboarding for new lender users.

Training, Events, and Conference Presence

FHA will be unable to host any live or real-time web-based training events scheduled during the shutdown. Pre-recorded webinars will remain available on the Single Family Self-Paced, Pre-Recorded Training web page on HUD.gov, but will not be updated for the duration of the shutdown. Further, FHA staff scheduled to present at, or registered to attend conferences and other events, will be unable to do so for the duration of the shutdown.

Quick Links

HUD’s Contingency Plan for Possible Lapse in Appropriations document posted on HUD.gov at: https://www.hud.gov/sites/documents/HUDCONTINGENCYPLANFINAL.PDF

Resources
Contact the FHA Resource Center:

  • Visit our online knowledge base to obtain answers to frequently asked questions 24/7 at: www.hud.gov/answers.
  • E-mail the FHA Resource Center at: answers@hud.gov. Emails and phone messages will be responded to during normal hours of operation, 8:00 AM to 8:00 PM (Eastern), Monday through Friday on all non-Federal holidays.
  •  Call 1-800-CALLFHA (1-800-225-5342). Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at 1-800-877-8339.

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CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

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Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

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COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

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CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

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Business Development

Carrie Tackett

Business Development Safeguard Properties