9/30/2023 UPDATE:

Home Equity Conversion Mortgage (HECM) and Expiration of Appropriations

Annual appropriations funding the operations of the Federal Government are set to expire at midnight on September 30, 2023. If no appropriations for fiscal year 2024 are passed by that date, the Federal Government will experience a lapse in appropriations.

If there is a lapse, FHA will lack the authority to endorse Home Equity Conversion Mortgages (HECMs) after September 30, 2023.HECMs not endorsed before the expiration of appropriations on Saturday, September 30, 2023, will not be endorsed for the duration of any lapse in appropriations. FHA will endeavor to complete the endorsement of all HECM loan submissions before the expiration of its authority to do so. 

Please note that, consistent with the HUD Contingency Plan for Possible Lapse in Appropriations, the Department has determined that FHA’s Office of Single Family Housing and its mortgage insurance programs have sufficient funding to continue operations through October 7, 2023. FHA’s continued operation during this period does not change its inability to endorse HECM loans in the event of a lapse.

If a lapse continues beyond October 7, 2023, FHA will provide further information regarding implementing HUD’s Contingency Plan on Tuesday, October 10, 2023 (there is a Federal holiday on October 9, 2023).

Need Support? Contact the FHA Resource Center

  • Visit our knowledge base to obtain answers to frequently asked questions 24/7 at www.hud.gov/answers.
  • E-mail answers@hud.gov. Emails and phone messages will be responded to during normal hours of operation, 8:00 AM to 8:00 PM (Eastern), Monday through Friday on all non-Federal holidays.
  • Call 1-800-CALLFHA (1-800-225-5342). Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at 1-800-877-8339.

About FHA INFO

FHA INFO is a publication of the Federal Housing Administration’s (FHA), Office of Single-Family Housing, U.S. Department of Housing and Urban Development, 451 7th Street, SW, Washington, DC 20410. We safeguard our lists and do not rent, sell, or permit the use of our lists by others, at any time, for any reason.

Visit the FHA INFO Archives to access FHA INFO messages. For additional information and resources, visit the FHA Single Family Housing main page on HUD.gov

In the event of a government shutdown, the Federal Housing Administration’s Office of Single-Family Housing and its programs will operate with limited services until an appropriations bill to fund the government is signed into law.

As was the case in previous shutdowns, under a lapse in funding, FHA’s actions and decisions about which operations continue or not are governed by the Constitution, statutory provisions, court opinions, and Department of Justice (DOJ) Opinions, which provide the legal framework for how funding gaps and shutdowns have occurred in recent decades.

While some services will continue to be operational, please note that across the board, the services that remain available during the shutdown will have significant impacts to customer service and limited functionality.

Please see the information below for an overview of the business impacts specific to the Office of Single-Family Housing. Full descriptions and details are in the Department of Housing and Urban Development’s (HUD) Contingency Plan for Possible Lapse in Appropriations document posted on HUD.gov.

Reverse Mortgages: What Happens in a Government Shutdown?

Customer Service

The following will be available for general inquiries during the shutdown, but with limited staff assistance available, longer wait times for assistance, and limited ability to answer case-specific questions:

  • The FHA Resource Center
  • The Resource Center’s online FAQ site will be available but will not be updated for the duration of the shutdown
  • By email at answers@hud.gov
  • By phone at (800) 225-5342 and
  • The FHA National Servicing Center by phone at (877) 622-8525.

Insurance Endorsements

  • Insurance endorsements will not be made for Home Equity Conversion Mortgages (HECM) or Title I loans for the shutdown duration.

Lender Certification, Monitoring, and Quality Assurance Processes

The following process will be available during the shutdown, but with limited staff assistance available and longer wait times for assistance:

  • Notice of Return violation reviews on pre-endorsement loans.

The following processes will be unavailable for the duration of the shutdown:

  • Annual Recertification: reverse mortgage lenders must continue to complete the required annual certification process in accordance with the existing policy in the FHA Single Family Housing Policy Handbook1 (SF Handbook); however, the submission will not be reviewed or approved for the duration of the shutdown.
  • Application for FHA Lender Approval: applications may be submitted in accordance with existing policy in the SF Handbook; however, the submission will not be reviewed or approved for the duration of the shutdown.
  • Request for Post-Approval Changes: This may be submitted in accordance with the existing policy in the SF Handbook; however, changes requiring FHA action will not be reviewed for the duration of the shutdown.
  • Requests for Supplemental Mortgage Authority: may be submitted in accordance with existing policy in the SF Handbook; however, the submission will not be reviewed for the duration of the shutdown; and
  • Quality Assurance processes (Loan and Lender Monitoring Activities) will not occur during the shutdown.

Other Participants in FHA Transactions

The following processes will be available during the shutdown, but with limited staff assistance available and longer wait times for assistance:

  • FHA Appraiser Roster look-up functionality.
  • FHA 203(k) Consultant Roster look-up functionality; and
  • FHA-approved Non-Profit look-up functionality.

The following processes will be unavailable for the duration of the shutdown:

  • FHA Appraiser Roster new application, reinstatement, and recertification processing.
  • FHA 203(k) Consultant Roster new application, reinstatement, and recertification processing; and
  • Non-profit new application, reinstatement, and recertification processing.

Pre-Endorsement Loan Processes

The following pre-endorsement loan processes will be available during the shutdown, but with limited staff assistance available and longer wait times for assistance:

  • Condominium Project approvals under the Direct Endorsement Lender Review and Approval Process (DELRAP).
  • Manual endorsement actions: case number cancellations, reinstatements, and transfers; resolution of the Holds Tracking queue; and
  • TOTAL Mortgage Scorecard evaluations.

The following processes will be unavailable for the duration of the shutdown:

  • Condominium Project approvals under the HUD Review and Approval Process (HRAP); and
  • Test Case Loan Submission.
  • HECM Reverse Mortgage Collateral Risk Assessment issue assistance.

Servicing, Claims, and Asset Management

The following servicing, claims, and asset management business processes will be available during the shutdown, but with limited staff assistance available and longer wait times for assistance:

  • Submissions of upfront Mortgage Insurance Premiums (MIP) for new endorsements (note that lenders are required to submit monthly MIP during the shutdown);
  • MIP refunds to borrowers
  • Claims filing and payments
  • Conveyance of properties
  • HECM payments to borrowers
  • HUD Real Estate Owned listings; and
  • Servicing of HUD Secretary-held notes and mortgages.

The following processes will be unavailable for the duration of the shutdown:

  • HUD Broker Name and Address Identification Number (NAIDs) application processing; and
  • Extension and variance processing in the Extensions and Variances Automated Requests System (EVARS) by the National Servicing Center.

Technology Systems

The following systems will be available for use but with limited capability for actions that require FHA staff intervention:

  • FHA Connection (FHAC), including obtaining an FHA Case Number
  • Loan Review System (LRS)
  • Neighborhood Watch Early Warning System (SFNW); however, data will not be updated for the duration of the shutdown
  • Single Family Insurance System (SFIS) and Insurance Claims Subsystem (CLAIMS);
  • Lender Electronic Assessment Portal (LEAP); however, FHA will be unable to approve FHA applications, perform lender certifications, or review or process any audited financial statements
  • Credit Alert Verification Reporting System (CAIVRS); however, FHA may not be able to ensure that the information contained in the system is up-to-date
  • Electronic Appraisal Delivery (EAD) portal; available for existing lender users only;
  • Electronic Data Interchange (EDI)
  • Extension and Variance Automated Requests System (EVARS): requests may be submitted; however, FHA staff will not be available to process requests
  • Home Equity Reverse Mortgage Information Technology (HERMIT);
  • Single Family Default Monitoring System (SFDMS)
  • P260 Lender Portal; and
  • Title I Insurance and Claims System (TIIS).

The following FHA system will be unavailable for the duration of the shutdown:

  • Electronic Appraisal Delivery (EAD) portal onboarding for new lender users.

Training, Events, and Conference Presence

FHA cannot host live or real-time web-based training events scheduled during the shutdown. Pre-recorded webinars will remain available on the Single-Family Self-Paced, Pre-Recorded Training web page on HUD.gov but will not be updated for the shutdown duration. Further, FHA staff scheduled to present at, or registered to attend conferences and other events, will be unable to do so for the duration of the shutdown.

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