Monthly Mortgage Insurance Premiums - General Program Information

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Questions and Answers

What is the Single Family Premium Collection Subsystem - Periodic (SFPCS-Periodic or SFPCS-P)?

SFPCS Periodic is a HUD system that tracks the collection of monthly mortgage insurance premium (including late and interest charges) for both Risk-based and Section 530 programs at the case level. It also provides reports relating to monthly premium for cases in a lender's portfolio.

What HUD office is responsible for the collection of monthly mortgage insurance premiums?

The Single Family Insurance Operations Division (SFIOD) of HUD's Office of Financial Services is responsible for the collection of monthly mortgage insurance premiums.

What is included in my bill?

Billing information is created for all Section 530 and Risk-based cases requiring monthly mortgage insurance premium payments in your lending institution's portfolio (according to HUD's records). Billing occurs monthly on or about the 17th day of the month and includes any premium, late, and interest charges due through the billing period. Active cases receive $0.00 billing if no charges are assessed. Terminated cases are billed if there are any outstanding charges. Nonendorsed and invalid cases are not billed.

How do I get the bill?

See Billing questions and answers. Also, lenders with a portfolio of 3,000 cases or less can get a list of billed cases for online payment on the FHA Connection.

How do I pay my bill?

Periodic premium payments can be submitted online using the FHA Connection or through CPU to CPU batch file transmissions. For lenders with a portfolio of 3,000 cases or less, the FHA Connection provides a list of billed cases for which payment can be made. Lenders with a portfolio of over 3,000 cases do not get a list of cases for payment on the FHA Connection. Consequently, high volume lenders may choose to use the CPU to CPU batch file transmission method of payment.

How do I get set up to make monthly mortgage insurance premium payments?

See Getting Started - Periodic Premium Payments via Pay.gov.

How do I get reports pertaining to the monthly mortgage insurance premium for my cases?

See Monthly Premium Report Files questions and answers.

When are monthly mortgage insurance premiums due?

Premiums are due the 1st day of the month following the billing. There is a grace period until the 10th day of the month. Payments with a received date after the 10th are assessed late charges. Payments with a received date after the end of the month are assessed interest charges the following month.

Are monthly premium payments required for a nonendorsed case?

A case for which FHA insurance is being requested (nonendorsed case) is not billed for monthly mortgage insurance premium. However, payments should begin on the first day of the month following the beginning of loan amortization, regardless of whether the case is endorsed or billed. For example, for a case with a beginning amortization date of June 2007, the first monthly MIP payment should be made on July 1, 2007.

What should I do if a nonendorsed case is canceled and I made payments on it?

Send a request for a refund or reallocation of the payments made on the canceled case. See refund questions and answers and reallocation questions and answers for further information.

How are lenders contacted by HUD with respect to FHA mortgage insurance and mortgage insurance premiums?

HUD uses several methods of communicating with lenders.

	Email: Email notifications are sent when monthly mortgage insurance premium payments are received by HUD or there is a problem in settling a payment. The contact information the lender provided for the cash flow account setup for Single Family Periodic is used. Contact information can be added or updated using Cash Flow Account Setup on the FHA Connection's Lender Functions menu. If a CPU to CPU batch file transmission is rejected by HUD because of a format or control total issue, an email notification is sent to the technical contact specified by the lender on the Periodic Batch Transmission Signup Sheet. The technical contact can be changed by sending an email message to SfpaygovPeriodic@hud.gov.
	HUD's Institution Master File (IMF) maintains a list of mortgagee addresses. Some addresses you may change electronically through the FHA Connection's Lender Approval feature. Address Description Changed through FHA Connection? Geographic Address where office (home office or branch office) is physically located.  P.O. Boxes are not acceptable. Yes  *State cannot be changed Payee Address to which notification of payment for insurance benefits is mailed. No Mailing Address to which HUD correspondence for the mortgagee is mailed. Yes Premium Address to which Advance Notices (prior to SFPCS Periodic implementation) and Advice of Mortgage for the main office are mailed; also, address used for mailing an SFPCS Periodic mortgage insurance premium refund, unless requested otherwise.  This address does not apply to branch offices. Yes Computerized Homes Underwriting Management System (CHUMS) Address HUD uses to conduct business relating to the application for insurance. Yes Endorsement Address used for mailing a Single Family Premium Collection Subsystem-Upfront (SFPCS Upfront) mortgage insurance premium refund. Yes
	Mortgagee Letters inform lenders of changes in Federal Housing Administration (FHA) operations, policies, and procedures.

How can I find out what loans we currently service?

The Portfolio file is generated on request for lenders using the FHA Connection on the Internet. A Portfolio file is generated monthly for lenders using the Frame Relay Network (available on or about the second day of the month).

How is a change in the servicer of a loan reported to HUD?

A servicer change is reported to HUD through these two methods:

	A Servicer Transfer (HUD Form 92080) is processed using the FHA Connection, Business to Goverment (B2G), or Electronic Data Interchange (EDI) within 15 days of the change.
	The servicer submits a monthly mortgage insurance premium payment for the loan (case). A servicer change occurs only for an active or nonendorsed case. The Lender Notification report file notifies the new and prior servicers of the payment.

How do I cancel periodic mortgage insurance premium for a case that has reached 22% equity for its Risk-based loan?

Change the month and year that the last monthly insurance premium is assessed using the Monthly MIP Cancellation function on the FHA Connection.

How do I report a loan termination?

See Termination of FHA Case for information.