Attention FHA Lenders: Did You Miss HUD/FHA’s EAD Portal On-boarding Registration Deadline? If so – Read On!

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On April 8, 2016, I had alerted lenders that there was an important government deadline quickly approaching and advised them not to miss this “last chance” opportunity.

NO, I was not referring to the deadline established for filing Income Tax returns with the IRS.  Instead, I discussed HUD/FHA’s very last onboarding phase (which was held on April 15, 2016) for lenders to register for the Electronic Appraisal Delivery (EAD) portal.  The use of this EAD portal will become mandatory for all mortgagees on June 27, 2016.

The good news is that HUD/FHA is currently performing an assessment of which firms have not yet successfully completed the onboarding process and will send out “invitations” to them for a special onboarding phase to be held in early May 2016.  Detailed instructions on this process will be provided to these firms at the time the invitations are sent out.

The bad news is that HUD has not extended the June 27, 2016, deadline for mandatory submission of appraisal reports via the EAD portal.  Although appraisals can still be submitted manually for all case numbers assigned prior to June 27, 2016, lenders that have not been successfully on-boarded to the EAD will be unable to submit appraisals on cases receiving their FHA case numbers after June 27, 2016.  In addition, these lenders will also be unable to enter appraisal information into FHA Connection or obtain FHA mortgage insurance.

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In light of these dire consequences, if you have not yet been registered, I highly recommend that your firm responds to HUD/FHA’s invitation to participate in the special EAD onboarding phase that will be conducted in May 2016.

As the saying goes, “Get with the Program”!

About the Author

Gerry Glavey

Gerard (Gerry) Glavey is Senior Vice President / Chief Credit Officer for LoanLogics. Gerry has decades of experience working in residential mortgage credit and compliance and brings insights that few in the industry can match. In his role, he develops new services and provides support for all post close quality control and quality assurance, pre-close quality control, due diligence services, and document processing services. He spent 37 years with the US Department of Housing and Urban Development, where most recently he was the Director, Processing and Underwriting Division for the Home Ownership Center (HOC) in Philadelphia. In this capacity, Mr. Glavey was responsible for the administration of all HUD/FHA Single Family Loan Origination activities, including underwriting, appraisal and endorsement for the 16 state jurisdiction of this HOC.