FHA Provides Reverse Mortgage Appraisal Submissions to Catalyst Software program
The Federal Housing Administration (FHA) on Wednesday announced mandatory transition dates for mortgage holders to submit estimates for both single-family forward and reverse mortgage endorsements through their FHA Catalyst software. This emerges from the publication of the Mortgagee Letter (ML) 2021-23.
Of particular attention to the reverse mortgage industry, according to the FHA, Catalystnow is introducing a new Home Equity Conversion Mortgage Appraisal Submission (HECM) feature as a new feature that is immediately available within the module.
In the document, the FHA indicates all the dates on which filings via Catalyst will become mandatory. As of March 14, 2022, the submission of assessments via the FHA Catalyst: Electronic Appraisal Delivery (EAD) module will be mandatory in all cases, unless an earlier version of the assessment has been submitted to the old EAD portal, the letter says.
However, for cases with an earlier submission of the assessment in the old EAD portal before March 14, 2022, new assessments can still be submitted via the old EAD portal until April 15, 2022. After this date, assessments can be submitted for all cases, regardless of previous submission status, must be delivered via the FHA Catalyst: EAD module.
The release of this ML shows that Catalyst now has the added functionality of providing HECM assessments to streamline the methods available to the reverse mortgage industry for such filings. Unless otherwise noted, HECM assessments must follow the same timeframes outlined in the ML that apply to the FHA-managed single-family forward mortgage program.
This new functionality follows a number of updates the agency made to the software this year, including an earlier update that allowed mortgage borrowers to respond more quickly and accurately to the FHA’s request for case folders on both the front and the front the back of the mortgage responding company.
Last summer, the FHA also released an update to the Single Family Home Handbook 4000.1, which includes guidelines requiring that mortgage holders not eligible for eCaseBinder (eCB) filing through FHA Connection (FHAC) use the FHA Catalyst: Case Binder Use modules to route both Single Family Homes and Home Equity Conversion Mortgage (HECM) case folders requested through the Loan Review System (LRS) for post-approval technical review.
Read the details of the new regulations in the mortgage letter 2021-23 at the HUD.