FHA Connection is something we have never talked about here on Mortgage Loan Place, but it is a system that plays a vital role in helping lenders (and subsequently homeowners) get their FHA loans more expediently processed through the HUD. Essentially, FHA Connection is a web-based system that allows FHA-approved lenders to have direct access to all the documents, forms, and submissions required to secure FHA insured financing on a home loan.
We took some time to look extensively through everything the FHA Connection website offers lenders and it is amazing the amount of time and stress it can help remove from the sometimes complicated process of FHA financing. If you are a lender or mortgage broker interested in FHA loans, this is a system you should become very familiar with.
Each lender is provided a unique user ID with which they can login to the system and proceeed to complete and submit documents in real-time to the HUD. A comprehensive FAQ and start guide are open to all site visitors, so feel free to head over and learn more about the program.
As mentioned on the HUD site, actions that can be taken by lenders include:
"requesting and updating a case number, recording appraisal and mortgagor insurance information, reassigning appraisers, changing borrower, requesting duplicate Mortgage Insurance Certificate; provides lenders a low-cost, on-line option for submitting delinquent data, to retrieve title approval information, to view the status of receipt of the mortgage insurance premiums."FHA Connection truly is a unique toolset for lenders and a system that makes delivering FHA financing to homeowners much easier. While FHA mortgages haven't had the best of reputations the past 5 or so years, the fallout of the subprime market and pending legislation in Congress to modernize the HUD-backed initiative should reintroduce FHA loans as a common form of financing. As such, many lenders would be wise to do some initial research into FHA Connection while considering if they should become approved to connect borrowers with the program.