Single Family Default Monitoring System (SFDMS)
Frequently Asked Questions

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QUESTION 1 - Where can I get information about Single Family Default Monitoring System (SFDMS) error codes and EDI reporting? What is the R6 error code?

ANSWER - From the main SFDMS page, www.hud.gov/offices/hsg/sfh/nsc/sfdms.cfm please see links to 'Error Codes for HUD Default Reporting' and 'Mechanics of Reporting,' respectively.

QUESTION 2 - The ability to report defaults multiple times during the month has created problems for our company, because we find ourselves reporting the same default code on a loan via EDI and FHA Connection. What can be done to reduce duplication in reporting?

ANSWER -When reporting via EDI or FHA Connection, ensure that information reported to FHA Connection is not duplicated in EDI or vice versa. Reporting the same status codes for one loan to both systems will create duplication. Ensure that the last code reported at month end is the true status on the last day of the reporting period.

QUESTION 3 - The borrower is solicited for loss mitigation before foreclosure referral, but does not submit appropriate financial documentation or does not qualify for loss mitigation due to a lack of income. The servicer transmits an AO code. After the referral, the borrower submits the required documentation or experiences an increase in income that would make them eligible for a Loss Mitigation option. Would HUD recognize codes 09 Special Forbearance, 10 Partial Claim Started, or 28 Modification Started, as invalid status codes after reporting an AO?

ANSWER - NO, the scenario as presented above is not rare, so HUD would not consider this scenario presented in the default reporting history as illogical.

QUESTION 4 - When a third party sale occurs should status code 1A Foreclosure Sale Held be reported in addition to the status code 30?

ANSWER - Status codes 1A and 46 are not required as Code 30 negates the need for those codes.

QUESTION 5 - Current loans in bankruptcy status should not be reported to SFDMS; however, our servicer continues to report these loans and we continue to receive errors. Is there a way for SFDMS to exclude these loans from reporting?

ANSWER - The key is to remember that SFDMS is a default reporting system for reporting delinquent loans that are due for one full installment (30 days delinquent), and will always reject any case with a status that does not open with status code 42 - Delinquent. SFDMS is excluding current loans reported with bankruptcy status codes, by returning errors when you attempt to report these loans. Your servicer needs to change their reporting to exclude those loans.