With a stop-gap funding bill likely to be approved tonight, the following will not be germane for long, but it could serve as a template for the next potential shutdown. FHA's Office of Single Family Housing has provided a lengthy list of the availability of services, processes, and technical support, and we have cherry picked what seems to be the most important information for our audience.
The FHA Resource Center's online online FAQ site has been updated to include additional information about operations and systems availability during the shutdown (use the keyword "shutdown".) It will not be updated further until the shutdown ends.
The Resource Center's email (email@example.com) and phone (800-225-5342.) will also be available to provide general, but not case specific, information, as will the FHA National Servicing Center (877-622-8525.)
Functions that will be available on a limited basis include:
- Insurance endorsements will be made for Title II forward mortgages but not for Home Equity Conversion Mortgages or Title I loans.
- Notice of Return violation reviews on pre-endorsement loans.
- Some pre-endorsement loan processes, including Condominium Project approvals under DELRAP, TOTAL Mortgage Scorecard evaluations, and Manual endorsement actions: case number cancellations, reinstatements, and transfers; and resolution of the Holds Tracking queue.
- 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;
- Servicing of HUD Secretary-held notes and mortgages.
- FHA Connection (FHAC), including obtaining an FHA Case Number;
- Loan Review System;
- 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);
- Title I Insurance and Claims System (TIIS).
- Look-up functionality for FHA rosters.
Applications for the following can be submitted according to applicable policy, but they will not be reviewed or approved for the duration of the shutdown.
- Applications for FHA Lender Approval
- Requests for Post Approval Changes
- Requests for Supplemental Mortgage Authority
- Annual Recertification. Lenders must continue to complete the process.
Lender and Loan Monitoring Activities (e.g., Post-Endorsement Technical Reviews (PETRs)): reviews will not take place for the duration of the shutdown.
The following processes and systems will be unavailable for the duration of the shutdown:
- New applications, reinstatement and recertification for FHA Appraiser, Consultant, Inspector, and Non-Profit Rosters.
- Condominium Project approvals under the HUD Review and Approval Process (HRAP);
- Test Case Loan Submission.
- HUD Broker Name and Address Identification Number (NAIDs) application processing;
- Extension and variance processing in the Extensions and Variances Automated Requests System (EVARS) by the National Servicing Center;
- Electronic Appraisal Delivery (EAD) portal onboarding for new lender users.
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 www.HUD.gov. but will not be updated for the duration of the shutdown. 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.
The notice stresses that decisions about which operations continue, or not during the shutdown "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."