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FHA Connection Updated to Support Sponsored Originations

The Department of Housing and Urban Development released new submission requirements for lenders sponsoring third party originators last week.

For transactions originated by an FHA-approved loan correspondent, mortgagees should follow the current process through December 31, 2010.

As of January 1, 2011, the FHA-approved loan correspondent program will no longer be available, and mortgagees must comply with new systems requirements to support collection of sponsored originator data. Mortgagees are reminded that only FHA-approved entities will have direct access to FHA Connection.

The new system enhancements will be implemented on FHA Connection on October 4, 2010, and sponsoring mortgagees must begin complying with the new data entry requirements on that date.

For more information, see Mortgagee Letter 2010-33.