Single Family Insurance Claims Accounts Receivable Subsystem (ARS)
remittance process complies with the U.S. Department of the Treasury's
mandate to discontinue the use of outside lockbox services and switch
to Treasury's Pay.gov collection service.
of April 29, 2011, the Claim remittance functions on the FHA Connection
(FHAC), which utilize the Pay.gov services for transferring funds,
replaced the Single Family Claims lockbox, formerly located in St.
Louis, MO. Lenders must transmit their payments utilizing the Claim
Remittance functions on the FHAC instead of mailing checks to remit
funds related to Single Family Claims repayments. This function
allows the electronic submission of funds to satisfy accounts receivable.
for Submitting Accounts Receivable Subsystem Remittances
order to use the Cash Flow Setup and/or submit Accounts Receivable
Subsystem Remittances using the FHA Connection, you must be a registered
FHA Connection user with authorization for these functions. If you
don't have access to the FHA Connection or these functions, you
should contact your company's FHA Connection Application Coordinator.
may contact the FHA Help Desk at SFADMIN@hud.gov.
You will need your company's ten digit lender ID number.
these links for information regarding access to the FHA Connection:
Cash Flow Account Setup
Flow Account Setup can be accessed using the following steps from
the Main Menu of the FHA Connection: Lender Functions > Cash Flow
instructions on how to perform a Cash Flow Setup can be found by
going to the Cash Flow Setup link within the Lender Functions Module
of the FHA Connection Guide.
have two options for entering their banking information depending
on the frequency with which they intend to submit remittances.
Lenders making recurring remittances are encouraged to go through
the Cash Flow Account Setup, designating which bank account will
be used to withdraw funds. The Cash Flow Account Setup module
within the FHA Connection Lender Functions section of the FHA
Connection Guide has further instructions on how to proceed with
this option. If this route is chosen, the "Cash Flowed" account
will become the default account used when submitting remittances.
An unlimited number of remittances can be submitted with a maximum
of 25 cases per remittance.
this option is selected, it must be performed prior to steps two
and three below for accessing the remittance options and submitting
funds. Otherwise, it will not be a viable option at the time of
choosing a remittance bank account. Verification of the banking
information provided, as discussed below in the "Pre-notification
(Prenote) Process" section, takes seven business days. Thus, the
banking information will be available for use on the eighth business
day after the cash flow setup has been initiated.
Lenders can opt not to set up a Cash Flow Account and supply their
banking information for each transmission. When using this method,
lenders can submit a maximum of five cases that must settle prior
to submitting another remittance.
Sign on to the FHAC and follow these steps to access the Claim Remittance
Family Insurance Claims Processing > Single Family FHA > Single
Family Servicing > Claim Remittance
Claim Remittance Processing and History
Family Insurance Claims Processing >Single Family FHA > Single Family
Servicing > Claim Remittance
The three Claim Remittance options are:
Single Family Claims
Background Information Regarding HUD's FHA Connection-Based FHA
Single Family Insurance Claims Accounts Receivable Subsystem (ARS)
submitted using the FHA Connection Single Family Insurance Claims
ARS Remittance feature result from various events such as lenders'
self-audits that identify over-claimed amounts; or re-conveyance
demands issued by Single Family HOC/M&M contractors, among others.
Collections posted to the ARS may also be lender remittances for
findings resulting from a Post Claim Review.
a remittance is not received from a lender within 90 days of establishing
a receivable, the receivable will be offset against subsequent approved
FHA single family claim disbursements for the lender until the receivable
is satisfied. If a receivable is not satisfied within 120 - 150
days, it is referred to the Generic Debt Collection Center in Albany,
NY, for enforced collection actions and the lender may be referred
to the Mortgagee Review Board.
is essential to correctly select the reason code from the drop down
list for each remittance. Failure to properly identify FHA case
numbers and reason codes for each individual remittance may lead
to future claim offsets.
although contact information is collected during the Cash Flow Account
Setup it is also collected from the transmitter on a transmission-by-transmission
basis for correspondence regarding the specific transmittal.
Flow Account Setup
Cash Flow Account Setup process for designating banking account
information for recurring remittances must be completed prior to
submitting any remittances. The pre-notification process for account
verification takes seven days, thus the lender's banking information
will be available for use the eighth day after the cash flow setup
has been initiated. Lenders with existing bank account information
on file, i.e. due to a previously implemented Cash Flow Setup for
use in paying Upfront and Monthly Premiums, can elect to use the
same banking information in creating the Single Family Insurance
Claims Accounts Receivable Subsystem (ARS) Remittance Cash Flow
Setup and avoid the pre-notification process. Use of this feature
will eliminate the approval period during which testing of the account
and routing information with Treasury occurs. Alternatively, lenders
can opt not to set up a Cash Flow Account and supply their banking
information for each transmission. See page seven of the instructions
regarding Single Family Insurance Claims Accounts Receivable Remittances
found at https://entp.hud.gov/pdf/mp_sfs10_clm_remit.pdf.
instruction regarding Cash Flow Account Setup can be found at https://entp.hud.gov/pdf/mp_paygov.pdf.
Cash Flow Account Setup can be accessed through HUD's FHA
Connection website, located within the Lender Functions menu
(which is accessed via the FHA Connection's main menu). An employee
of a lender without access to FHA Connection or its applications,
such as Cash Flow Account Setup, must complete a registration form
to obtain an FHA Connection user ID. Once a lender's employee has
an FHA Connection user ID, the employee is granted authorization
to use Cash Flow Account Setup by the lender's FHA Connection Application
Coordinator. This authorization is located in the Lender Approval
section of the FHA Connection ID Administration page used by the
Application Coordinator. The FHA
Connection Registration Procedures module of the FHA Connection
Guide has further instructions on attaining access.
the cash flow account information is entered, HUD will initiate
a prenote test to validate the account information provided and
verify the ability to perform an electronic Automated Clearing House
(ACH) withdrawal from the specified account. The first electronic
funds transfer (EFT) remittance can be made eighth business days
after initiation of the prenote, assuming no errors are reported.
The prenote test period begins the next business day after the cash
flow account is set up. A lender can use the Cash Flow Account Setup
on HUD's FHA Connection
website to determine the status of the prenote test and the date
the account becomes active if no errors are reported. If there is
an error, Cash Flow Account Setup provides the details. The Lender
must address any checking account issues with its bank. HUD only
accepts remittances from business checking accounts. On the FHA
Connection, the Cash
Flow Account Setup module of the FHA Connection Guide and the
online help for Cash Flow Account Setup provide additional details.
remittances that are fully received between 7:00 a.m. and 8:00 p.m.
EST on a business day are included in the processing for that business
day and will be posted the following day. Any remittance received
after 8:00 p.m. or on a non-business day (Saturday, Sunday, or federal
holiday), will be accepted and held for processing until the next
business day. Furthermore, transactions entered through the FHA
Connection after 8:00 pm of the third to last business day of the
month through the end of the month, will not be posted to the Accounts
Receivable Subsystem until the first business day of the following
month (e.g., for the month ending 9/30/10, any transaction submitted
after 8 pm on 9/27/10 and before 8:00pm on 9/30/10 will be posted
to ARS 10/1/10). Lenders are encouraged to process remittances early
to avoid penalties as a result of transmission problems.
items will not be re-presented for collection due to insufficient
funds. If HUD fails to collect remittances the first time, the remittance
shows a "Failed" status. Lenders are advised to check their remittance
history screen for remittances that require correction and resubmission.
A notification will not be automatically generated.
account information provided during the one-time cash flow account
setup is encrypted using the Triple DES encryption standard and
stored in a database with access limited to authorized support personnel.
All bank account data is stored in HUD's databases only. The remittance
information is transmitted securely to the U.S. Department of the
Treasury's Pay.gov system for collection processing. Data security
is controlled by HUD's strict Automated Data Processing (ADP) security
policies. All HUD technical support personnel are required to undergo
background investigation. FHA Connection security policies are followed
for user access to the Cash Flow Account Setup function and the
online FHA Connection Single Family Insurance Claims Accounts Receivable
Subsystem (ARS) remittance process. FHA Connection Application Coordinators
are required to provide other users within their lending institutions
access to these functions, if appropriate.
email HUD with any questions
or comments you may have about the Single Family Insurance Claims
Accounts Receivable Subsystem (ARS) Remittance process.
Are supporting documents required to be submitted?
No, but you will be required to choose the correct reason code from
the drop-down menu. Retain supporting documentation in the claim
Is there a Mortgagee Letter available for this feature?
Yes. Mortgagee Letter 2011-08.
Is this feature accessible through the Pay.gov website?
No, you must access the Claim Remittance functions via the FHA Connection.
The Claim remittances features are not accessible on the Pay.gov
How do I access the FHA Single Family Insurance Claims Accounts
Receivable Subsystem (ARS) Remittances features?
The FHA Single Family Insurance Claims Accounts Receivable Subsystem
(ARS) Remittances features must be accessed through the FHA Connection.
Your on-site FHA Connection Coordinator can provide access not only
to the FHA Connection, but specifically to the Remittance features
Will HUD withdraw funds from the account we provide through the
Cash Flow Setup?
HUD will withdraw only those funds designated by the lender during
a Single Family Claims ARS Remittance submission.
How long is the Remittance History maintained? How can we get a
copy of our Remittance History?
The Remittance History is available indefinitely and case details
How many remittances can be submitted per day?
If a "Cash Flowed" account is used, there is no limit to the overall
number of remittances, but each remittance accepts a maximum of
25 cases. If a "Cash Flowed" Account is not used, and banking information
is entered for each transmission, only one remittance of five unsettled
cases can be submitted at a time.
Can lenders opt not to set up a Cash Flow Account?
Yes. Lenders have the option to enter their banking information
on a remittance-by-remittance basis.
Who can I contact to discuss the use of appropriate reason codes,
and where funds need to be sent?
What should I do if I cannot access the remittance links?
Speak to your company's FHA Connection Coordinator, who will be
able to provide access.
Is there a minimum amount required to make a remittance?
Is the submission of remittances limited to items we are actually
No. You may remit over-claimed amounts at any time. Receipt of a
billing letter is not a pre-requisite for remittances. In all cases,
however, select the appropriate reason code.