FHA Single Household Pronounces FHA Catalyst: Single Household Default Monitoring System (SFDMS) Reporting Module | Weiner Brodsky Kider PC
On September 13, 2021, HUD published Mortgage Letter (ML) 2021-21, FHA Catalyst: Single Family Default Monitoring System (SFDMS) Reporting Module. The ML announces the transition from FHA Connection (FHAC) to the FHA Catalyst system for reporting overdue FHA Title II Single Family Forward Mortgages in SFDMS. The FHA assures that the new module improves the data integrity of the system while integrating existing capabilities.
Onboarding begins immediately for all users of the FHA Catalyst: SFDMS Reporting Module. All mortgage holders, including those currently using SFDMS in FHAC, must apply for access to FHA Catalyst and complete onboarding prior to the mandatory use date December 1, 2021. November 5, 2021 is the last day mortgage holders can use FHAC to process default notifications. On December 1, 2021, mortgage holders must submit standard data in FHA Catalyst or via Electronic Data Interchange (EDI).
In addition to announcing this change, ML updates and optimizes the data elements transmitted as part of standard reporting. These changes include new error codes and data correction messages to ensure data integrity in the FHA’s portfolio reporting. When reporting, the HUD states that mortgage creditors can refer to the SFDMS Reporting Codes and Reporting Data Elements document, which the FHA has revised to reflect these new codes and data elements.