There is less than one week remaining before the implementation of the Federal Housing Administration’s Loan Review System (LRS). When LRS goes live on May 15, lenders will use the system for all new post-endorsement loan reviews and other quality control functions for Single Family Title II mortgages (which includes Home Equity Conversion Mortgages). During this final week before implementation, lenders are encouraged to take the following actions:
- Check FHA Connection (FHAC) Access; Assign User Roles Beginning May 10
All users access LRS through FHAC, and must maintain a valid FHAC user ID. Each lender’s FHAC Application Coordinator will need to register new users and reactivate expired user IDs for any individual that requires LRS access. For information on registering users in FHAC, please reference the online FHA Connection Guide.
- Beginning May 10, each lender’s FHAC Application Coordinator can begin granting specific authorizations for LRS roles to users from the “Loan Review System” section of the FHAC ID Administration screen.
- Lenders should also ensure their Administrative Contact information is updated in the Lender Electronic Assessment Portal (LEAP). The Administrative Contact will receive daily notifications sent to their email address(es) summarizing any new LRS response requests.
- Review Documentation; Prepare for Transition
FHA posted a new LRS Fact Sheet on the LRS Information Page on HUD.gov. The fact sheet includes summary information about the system, descriptions of user roles, and other quick start implementation actions for lenders.
FHA also reminds lenders that all reviews currently in progress will continue to be handled through existing processes until they are closed. Thus, some lenders may be using both existing processes and LRS for a limited time.
- View LRS Recorded Webinars
FHA encourages lenders to view all three LRS webinars, accessible from the Single Family Housing Archived Webinars page:
- Webinar 1 – Loan Review System (LRS): Implementation and Process Changes. This webinar, recorded on January 26, 2017, provides an overview of LRS functionality and related process changes.
- Webinar 2 – Loan Review System (LRS): Functions and Uses. This webinar, recorded on March 15, 2017, builds upon the overview information in Webinar 1 and provides user-level detail on LRS functionality.
- Webinar 3 – Loan Review System (LRS): Lender Monitoring, Reporting, and Other Functions. This webinar, recorded on April 26, 2017, provides a detailed review of lender monitoring, lender reporting, and other system functions. This webinar builds upon the information contained in Webinars 1 and 2.