In ongoing efforts to streamline submissions for Federal Housing Administration (FHA) appraisals for both forward and reverse mortgage lenders, the Department of Housing and Urban Development (HUD) recently announced some additional details regarding its planned launch to bring appraisal delivery online.
On March 26, HUD announced plans to launch the Electronic Appraisal Delivery (EAD), a web-based system that enables lenders or their third-party service providers to electronically transmit appraisal data and reports to FHA prior to loan endorsement.
“It will make it easier for mortgagees and others to do business with FHA by offering process and technology efficiencies that streamline appraisal transmission, promote quality up-front appraisal data, and reduce post-endorsement appraisal data corrections,” HUD stated in a memo issued Monday.
As announced in Mortgagee Letter 2015-08 last March, lenders will be required to use the EAD portal to submit appraisal data to FHA for all case numbers assigned on or after June 27, 2016.
Currently targeted to begin in August 2015, the EAD portal registration process will allow for lenders to select and register for one of several migration phases that will begin this October.
In order to migrate to the portal before the mandatory use date, HUD says lenders must register for one of the available migration phases to be established by FHA, which will start every 30 days and be approximately 60 days in duration.
Registering for one of the migration phases also aims to help lenders become more familiar with the EAD portal and work through data submissions in a “live environment,” with FHA and vendor support available to resolve any issues, if need be.
HUD also advised about pre-registration preparation in its memo, encouraging lenders to sign up for the earliest possible migration phase available, that is, once the EAD registration capability in its FHA Connection system becomes available in August.
More information on lender integration and migration for the EAD can be found here.
Written by Jason Oliva