FHA Allows Digital Delivery of HECM Case Binders

FHA Allows Digital Delivery of HECM Case Binders

The Federal Housing Administration this week published Mortgagee Letter (ML) 2020-07, which gives mortgagees the option to electronically deliver case binders for Single Family forward mortgage and HECM endorsements through the new FHA Catalyst case binder module.

To ease the process for conducting business with FHA, mortgagees may use the module in conjunction with the requirements in Section II.A.7.d., Procedures for Endorsement, in Single Family Housing Policy Handbook 4000.1. The module enables non-lender insurance (LI) mortgagees the ability to electronically submit case binders for endorsement, in lieu of mailing paper binders to FHA Homeownership Centers.

Mortgagees with LI authority that deliver paper case binders may also use this option to submit case binders with severe case warnings for reconsideration when the borrower failed or is pending social security number validation, or has a record found in the Credit Alert Verification Reporting System (CAIVRS).

The new FHA Catalyst: Case Binder Module excludes the delivery of both Single Family forward and HECM case binders selected for post-endorsement review at this time. Mortgagees approved for FHA’s existing electronic Case Binder (eCB) delivery method through FHA Connection (FHAC) must continue to send electronic binders through FHAC.

Stakeholders are encouraged to utilize the case binder module; however, participation is not required. To access the module or receive guidance on its use, mortgagees should contact the FHA Resource Center by emailing answers@hud.gov or by calling 1-800-CALLFHA (1-800-225-5342).