Terminology Used with Upfront Mortgage Insurance Premium (MIP)

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HUD Personnel and Business Partners

• Mortgagee: Originating lender, sponsor, or agent of a loan for a single family home.

• SFIOD: Single Family Insurance Operations Division of HUD's Office of Financial Services, which is responsible for the collection of upfront MIP.

  -	Lender Assistance Section: Section of SFIOD that assists lenders with upfront MIP issues including reallocating or reapportioning a payment or adjusting late/interest charges.
  -	Disbursements and Customer Service Branch: Branch of SFIOD that processes premium refunds to lenders.
  -	Systems Management Branch, Data Quality Control Section: Branch/section of SFIOD that maintains the data quality of cases that were endorsed for FHA mortgage insurance (e.g., post-endorsement servicer/holder transfers, insurance termination, etc.).

• CHUMS: HUD's Computerized Homes Underwriting Management System used for processing single family mortgage insurance applications from initial receipt through endorsement.

• FHA Connection: HUD's website that provides FHA-approved lenders and business partners with direct, secure, real-time access to FHA systems, including CHUMS, SFPCS Upfront, and SFPCS Periodic.

• Pay.gov: U.S. Department of the Treasury's collection service which processes upfront MIP payments electronically (electronic funds transfer or EFT) through the Automated Clearing House (ACH) using a checking account debit.

• SFPCS-P or SFPCS Periodic: HUD's Single Family Premium Collection Subsystem - Periodic that bills and tracks the collection of monthly mortgage insurance premium.

• SFPCS-U or SFPCS Upfront: HUD's Single Family Premium Collection Subsystem - Upfront that collects and processes upfront MIP payment information. It provides CHUMS with upfront MIP payment information for FHA insurance endorsement.

• Adjustment: Removal of late and/or interest charges assessed on a late upfront MIP payment.

• Batch File: A file that contains a sequence, or batch, of commands for transmitting upfront MIP payments.
  
  
• Case Correction: Non-monetary change to case information that was submitted with an upfront MIP payment.
  
  
• CPU to CPU: Direct transfer of batch files from lender's computer system to HUD's computer system. CPU is an abbreviation for central processing unit, the "brains" of a computer.
  
  
• Endorsed Case: Loan that was endorsed for FHA mortgage insurance.
  
  
• FHA Case Number: Unique 10-digit number assigned to a loan through Case Number Assignment on the FHA Connection. A loan assigned a number is called a case.
  

• MIP: Abbreviation for mortgage insurance premium.
  
  
• Nonendorsed Case: Loan assigned an FHA case number that has not been endorsed for FHA mortgage insurance. Also sometimes referred to as an unendorsed case.

• Reallocation: Transfer of money from one case payment to one or more other cases in a lender's portfolio.
  
  
• Reapportion: Redistribution of the premium, late, and interest amounts specified for a case payment.
  
  
• Refinance Case: See Refinance Cases.
  
  
• Periodic Premium: Annual premium that is paid on a monthly basis. Also sometimes referred to as monthly premium. Most of the FHA's mortgage insurance programs require the payment of monthly premium starting at the beginning of loan amortization.
  
  
• Suspended Payment: A payment is suspended when case information submitted with the payment is invalid or incorrect or is inconsistent with a previous case payment. A case is suspended when it has a suspended payment or unpaid late and/or interest charges.
  
  
• UFMIP: Abbreviation for upfront mortgage insurance premium.