Lender Notification

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Questions and Answers

What does the Lender Notification file disclose?

The Lender Notification file identifies any unexpected events that take place during the month as payments are processed.  You should check your Lender Notification file three to five business days following a payment and/or around the 17th of the month for any of the following events:

	You have paid on another mortgagee's case
	Another mortgagee has paid on your case
	You have paid on a case that has not been billed

Where can I retrieve my lender notifications?

The Lender Notification file is available via the FHA Connection on the World Wide Web and via the Frame Relay Network (for large volume mortgagees). 

Do you have access to the FHA Connection? If not, please refer to Mortgagee Letter 97-33 (July 24, 1997) for information about gaining access. After signing on to the FHA Connection, select Single Family FHA, followed by Single Family Servicing, then Monthly Premiums.  Select the Retrieve Files button to access your files.

When can I retrieve my Lender Notification file?

Lender notification information is available three to five days following a payment with an unexpected event.  You should check for lender notifications after you remit a payment and after Reconciliation. Each time a lender notification is generated, it is added to the monthly Lender Notification file. All notifications are maintained indefinitely.

It is recommended that mortgagees using the FHA Connection should request their Lender Notification file along with the Reconciliation file on the 17th of each month. File requests for lender notification are processed between the hours of 8 a.m. and 8 p.m. ET, Monday through Friday, excluding holidays. A generated file remains available for three business days.

For mortgagees using the Frame Relay Network, a Lender Notification file is automatically generated monthly (available on or about the 14th of the month).

Can a lender notification have more than one reason?

No. Each lender notification has one reason and is issued for a single mortgagee. In an instance when a mortgagee makes a payment on another mortgagee's case, each mortgagee receives a separate lender notification with the appropriate reason. Each mortgagee also has the option of including the name of the other mortgagee in their downloaded file from the FHA Connection or the Frame Relay Network.

Can a case have multiple lender notifications?

Yes. A mortgagee may receive a lender notification for each payment made on a case.

I have a lender notification with the reason "You have paid on another mortgagee's case." Can I see who is the servicer of the case?

Yes. The Servicer/Payee Name field has been added to the Lender Notification file. In this situation, the field would indicate the name of the servicer. You will have the option of including this field in your downloaded Lender Notification file from the FHA Connection or the Frame Relay Network.

You may get contact information for the servicer of the case using HUD's searchable database of HUD/FHA approved mortgagees. For more information, please see Mortgagee Letter 98-6.

I have a lender notification with the reason "Another mortgagee has paid on your case." Can I see who made the payment?

Yes. The Servicer/Payee Name field has been added to the Lender Notification file. In this situation, the field would indicate the name of the mortgagee who made the payment. You will have the option of including this field in your downloaded Lender Notification file from the FHA Connection or the Frame Relay Network.

You may get contact information for the payee on the case using HUD's searchable database of HUD/FHA approved mortgagees. For more information, please see Mortgagee Letter 98-6.

What kinds of cases will I see on a lender notification with the reason "You have paid on a case that has not been billed?"

Payments on nonendorsed or non-Periodic, in the Computerized Homes Underwriting Management System (CHUMS), cases will generate a lender notification with this reason. Payments on terminated or matured cases after one month with no outstanding balance will generate a lender notification with this reason.