The FHA Connection is an interactive portal on the Internet that provides approved FHA lenders real-time access to several FHA systems, including FHA's Computerized Homes Underwriting Management System (CHUMS)

Reference: For more information, see the FHA Connection User Guide on the FHA Connection.

Direct Endorsement (DE) lenders must use FHA Connection to electronically

• process case number assignments, inspector assignments, appraisal information, and case cancellations (until the process is updated), and
• receive
• insurance, and
• loan data.

Note: Home Ownership Centers (HOCs) will not accept telephone or mail requests for case numbers, case status, or other actions that can be performed by the lender through the FHA Connection.

The FHA Connection provides lenders with the ability to perform the following transactions electronically:

• request
• FHA case number assignments
• appraiser assignments
• case queries
• refinance authorizations
• insurance
• inspector assignments
• loan data
• case cancellations (until the process is updated)
• Credit Alert Interactive Voice Response System (CAIVRS) authorizations
• Reports, and
• HECM insurance
• transfer cases to other lenders or sponsors
• query approval lists
• create
• Institutional Master File (IMF) sponsor relationships, and
• Authorized agents for Title II
• register
• underwriters, and
• automated underwriting systems
• change IMF addresses
• inquiry IMF addresses, and
• add Title I and Title II branches.

A Help ? icon is located on the upper right hand corner of each FHA Connection screen to assist the user. The Help window describes the system

• functions
• data entry fields
• valid data entries, and
• information that is returned to the user upon performing various functions.

Note: The Help screens should be consulted prior to calling FHA for help with the data entry fields.

FHA Connection users receive immediate feedback, in the form of an electronic error message, on reasons for possible non-insurance. Lenders must correct any errors before cases are submitted for insurance.

Reference: For information on the types of error messages that must be corrected by the lender prior to submitting the case binder for insurance, see the FHA Connection User Guide.

For all cases, including Home Equity Conversion Mortgages (HECMs)

• the appraiser must send his/her appraisal and one copy to the lender (the appraiser should not mail the appraisal to the HOC), and
• the lender is required to enter the appraisal information into the FHA Connection prior to receiving insurance

When mailing the HUD case binder to the HOC, the DE lender must include the original appraisal and copy provided by the appraiser.

Note: Lenders originating HECM loans enter the appraisal information into FHA Connection in order for the system to calculate the mortgage insurance premium (MIP).

The FHA Connection Business-to-Government (FHAC B2G) specification allows lenders to transmit data directly from their own internal loan processing systems to FHA without rekeying data into the FHA Connection or functional equivalent.

B2G reduces the data entry burden for lenders and allows for efficient transmission of large volumes of data to FHA. The FHAC B2G Guide and a list of available functions and enhancements may be found at http://www.hud.gov/offices/hsg...