HUD: FHA INFO #20-86: FHA Catalyst: Claims Module – Expanded Functionality

HUD: FHA INFO #20-86: FHA Catalyst: Claims Module – Expanded Functionality

Investor Update
November 19, 2020 

Source: HUD

Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2020-38FHA Catalyst: Claims Module – Expanded Functionality for Conveyance, Single Family Loan Sales, Claims Without Conveyance of Title, and Pre-Foreclosure Sale Claims – and Phased Removal of Social Security Number Collection for Claim Submissions. This ML announces expanded capabilities within FHA Catalyst, providing mortgagees with new claim submission functionality through the platform. This expanded capability is part of FHA’s continuing efforts to improve and standardize processes for its stakeholders.

Mortgagees can electronically submit all parts of the Single-Family Application for Insurance Benefits Form HUD-27011 using the FHA Catalyst: Claims Module for the following claim types on the dates noted below.

•  Conveyance Claims, through foreclosure or Deed-In-Lieu of Foreclosure, (Claim Type 01) are effective November 19, 2020.

• Hawaiian Home Land Mortgages (Section 247 Mortgages) claims (Claim Type 02), Insured Mortgages on Indian Land (Section 248 Mortgages) claims (Claim Type 02), Single Family Loan Sale claims (Claim Type 02), Claims Without Conveyance of Title (CWCOT) (Claim Type 06), and Pre-Foreclosure Sale (PFS) claims (Claim Type 07) are effective December 15, 2020.

FHA is also phasing out collection of the borrower’s Social Security Number (SSN) as part of the claim submission process. Beginning November 19, 2020, mortgagees who submit claims via the FHA Catalyst platform will not be required to submit the borrower’s SSN with those claims. Beginning June 30, 2021, mortgagees will not be required to submit the borrower’s SSN with any claims, regardless of the claims submission method.

Additionally, these policies will be incorporated into applicable sections of the Single Family Housing Policy Handbook 4000.1. Stakeholders are encouraged to read the ML in its entirety for further guidance.

The FHA Catalyst: Claims Module is available upon request only. To gain access, mortgagees should contact the FHA Resource Center by email at: answers@hud.gov or call: 1-800-CALL-FHA (1-800-225-5342).

Quick Links:

• View Mortgagee Letter 2020-38 and all other archived Mortgagee Letters at:
https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
• View FHA Catalystinformation at: https://www.hud.gov/catalyst
• Find more information about the FHA Catalyst: Claims Module at:
https://www.hud.gov/program_offices/housing/FHACatalyst/claimsmodule
• Access the Single Family Housing Policy Handbook 4000.1 in online or portable document format (PDF) from
HUD’s Client Information Policy Systems (HUDCLIPS) Handbooks web page at:
https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh