FHA’s EAD. The Time Has Come

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With everything going on surrounding Brexit: low rates, increased refinances and the presidential race you may have missed a deadline.

Effective for all FHA case numbers issued/assigned as of June 27, 2016, FHA-approved lenders must deliver appraisal reports through FHA’s new EAD (Electronic Appraisal Delivery) portal.

If you missed the deadline, you’re probably okay as you most likely do not have the appraisal yet for FHA loans on which the case number was just recently assigned. But if you do, you need to get your appraisal report to FHA via their EAD portal. Got it? Good!

FHA’s Mortgagee Letter 2015-08 announced this new requirement and outlined the process. Additional information on approval, set up, delivery and use of the system may be found at FHA EAD Portal.

The EAD is just one part of the new FHA and its vision of future integrations among various mortgage-related systems to better facilitate the use of common data shared among multiple users. This will not only save time but minimize data errors versus using a manual data entry process.

If you’re doing FHA loans, and you’re not ready to transmit your appraisals through their EAD portal, you had better get cracking. FHA provided the information you need to do so and they are standing by to help you get started. All you need to do is take the first step.

Welcome to the new FHA. Warmer, friendly, working with approved mortgagees to make the process better. Now, if we can just do something about those annoying certifications.

Stay compliant my friends.

About the Author

Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.