FHA Processor “Prep Steps”

Written By: Stacey Sprain,
Certified Ambassador Loan Processor (CALP)

This week I thought it would be helpful to provide what I refer to as my list of FHA processor “Prep Steps.” These are steps I suggest every FHA processor complete in order to prepare for successful FHA processing.

The first thing I always suggest is obtaining a three-ring binder that you will reserve specifically for housing your FHA information. Create an attractive cover and label for the binder and divide the binder using index tab dividers so you can separate and label each section by subject. Maintain this binder on your desktop at all times and make sure it never leaves your office. It will become the most valuable tool you will use on a daily basis.

Next, proceed by completing the following “Prep Steps:”

1. Register for HUD’s free Single Family mailing list.
Go to http://www.hud.gov/offices/hsg/sfh/ref/hsgregst.cfm. As a subscriber, you will receive immediate notification when HUD issues Mortgagee Letters and bulletins with guideline or program changes as well as a list of newly added training events

2. If you are eligible, you will need to register for access to FHA Connection. Check with your manager or supervisor to determine if your position entails the responsibility of requesting case assignments. If it does, your organization should have an “administrator” for the FHA Connection account and should be able to help you with registering properly. **note** only W2 employees of FHA approved brokers/lenders are eligible for access to FHA Connection. Self-employed sub-contractor processors are not eligible for access.

3. I highly encourage subscription to the FHA MRI Guide. Click here for the order form. This guide is issued quarterly and an annual subscription is very reasonable at only $107, This guide proves a very helpful resource when you need to find quick answers on FHA guideline-related questions. It is a great learning tool for those who are new to FHA and/or for those who haven’t transitioned to utilize web-based handbooks and guideline resources

4. Set up a list of FHA and HUD websites as “favorites” so you can easily access these websites for FHA-related information when you need it.

5. Determine the FHA brokers/lenders you will be working with and gather their pertinent information.

a. Familiarize yourself with where to find FHA info on their website(s).

b. Pull their FHA-related product matrixes, guidelines and forms and add them to your binder or electronic filing system

c. Determine if they offer FHA-related training and participate.

6. Pull the list of maximum mortgage limits for your area and add to your FHA binder. Go to https://entp.hud.gov/idapp/html/hicostlook.cfm. Having this list at hand will help you easily double-check the mortgage amounts in the FHA files you receive for processing so it’s certain they are approvable and do not exceed are limits.

7. Pull a list of approved appraisers for your area and add to your FHA binder. Go to https://entp.hud.gov/idapp/html/apprlook.cfm. Having this list at hand will allow you fast access to the appraiser’s license id number which is required to be entered exactly as it’s listed when you request the FHA case number.

8. Pull a list of approved condominiums for your area and add to your FHA binder. Go to https://entp.hud.gov/idapp/html/condlook.cfm, Having this list at hand will allow you quick access to look up condo project names to determine quickly whether the loan needs to be processed as an approved FHA condo or spot loan condo project.

9. Go to www.fha.gov and navigate the website. You’ll find tons of information there to help you on your way with FHA!

About the Writer. As one of NAMP's volunteer writers, Stacey Sprain is currently a NAMP member in good standing and is a NAMP Certified Ambassador Loan Processor (CALP). If you would like to become a volunteer writer for NAMP, please email us at: blog@mortgageprocessor.org.