Getting Started - Periodic (Monthly) Premium Payments via Pay.gov

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Set Up a Cash Flow Account

On the FHA Connection, a Title II cash flow account (e.g., business checking account) must be set up for use by Pay.gov from which funds are withdrawn for Periodic premium payments. This cash flow account setup differs from the one established for the Lender Recertification fees.

• The lender's FHA Connection Application Coordinator grants Cash Flow Account Setup authorization to an employee with an FHA Connection user ID. This authorization is located in the Lender Approval section of the FHA Connection ID Administration page used by the Application Coordinator.
  
  
• The employee with Cash Flow Account Setup authorization accesses Cash Flow Account Setup on the Lender Functions menu and enters the required information.
  
  
• A prenotification (prenote) test is performed to verify the validity of the account information provided and the ability to perform an electronic ACH withdrawal from the account. The test uses a zero-dollar amount transaction. The first payment can be made eight business days after Pay.gov acknowledges receipt of the prenote transaction, if no errors are reported.

The FHA Connection Guide has instructions at:

https://entp.hud.gov/pdf/mp_paygov.pdf.

If an employee does not have an FHA Connection user ID, a registration form is completed to obtain one. Use the Registering a New User link on the FHA Connection's home page.

Prepare to Submit Payments

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 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.

The FHA Connection also allows the manual entry of cases for payment and supplies the status of online and batch file payments.

• Submitting Periodic premium payments using the FHA Connection: Employees of lenders or service bureaus who are responsible for making payments and/or viewing payment records must have an FHA Connection user ID and be granted the appropriate authorizations by the organization's FHA Connection Application Coordinator. These authorizations are located in the Monthly Premiums section of the FHA Connection ID Administration page used by the Application Coordinator. If a lender uses a service bureau, the service bureau must be established in HUD's system (have a five-digit FHA ID), be selected by the lender, and be granted the appropriate payment authorizations by the lender's FHA Connection Application Coordinator. The FHA Connection Guide has instructions on Service Bureau Administration at:
  
  https://entp.hud.gov/pdf/mp_gs5_srvcbur.pdf.
  

• Submitting Periodic premium payments through CPU to CPU batch file transmissions: See Periodic Mortgage Insurance Premium Batch Payment Processing Instructions for CPU to CPU Transmissions. Also, the appropriate FHA Connection authorizations must be granted for employees of lenders or service bureaus responsible for viewing the status of accepted or rejected batch files, tracking the status of a payment, or manually entering cases for payment on the FHA Connection. See above.

Please contact SF Administration (sfadmin@hud.gov) with any questions or comments you may have regarding the FHA Connection.