The claims module is one component of FHA Catalyst, FHA's new platform, which is being built as part of FHA's multi-year information technology (IT) modernization initiative.
The FHA Catalyst: Claims Module, which eliminates paper and decentralized email submissions and reduces processing time, is now used by servicers of FHA-insured mortgages for all single-family forward mortgage claim types.
All remaining claim types are now available in the FHA Catalyst: Claims Module. These include Loan Sale, Claims Without Conveyance of Title (CWCOT), Pre-foreclosure Sale (PFS) claims, Replacement – Claims Without Conveyance of Title (CWCOT), and Replacement – Pre-foreclosure Sale (PFS).
Digital Submission of Supplemental Claims
Mortgagees previously submitted supplemental claims for FHA single-family forward mortgages by filling out and mailing lengthy paper forms. The FHA Catalyst: Claims Module eliminates this labor-intensive process for both servicers and FHA.
Loss Mitigation Home Retention Claim Submissions
Implementing the loss mitigation home retention claim types on the FHA Catalyst platform is part of FHA's mission to create a modern and uniform process for submitting claims. There are five loss mitigation claim types available on the FHA Catalyst: Claims Module, including:
- National Emergency Partial Claim (Type 33)
- Natural Disaster Partial Claims (Type 33)
- HAMP Partial Claims (Type 33)
- Special Forbearance (Type 31)
- Loan Modification (Type 32)
Streamlined Reacquisition and Conveyance Claims Processes
FHA was able to streamline the reacquisition, conveyance, and replacement - claims processes as part of FHA Catalyst. For reacquisition claims, the FHA case number, submitted as a required field, will allow FHA to reference the previous conveyance claim settlement amount, which eliminates the need for mortgagees to resubmit previous conveyance claim information. At this time, bulk upload (XML) submitters must individually submit supporting and required documentation through the FHA Catalyst user interface. FHA is continuing development on the FHA Catalyst: Claims Module, including functionality to submit supporting and required documentation for bulk uploads directly to the Claims Module.
FHA Catalyst Claims Technology Enhances Processes and Data Integrity
This state-of-the-art automation eliminates redundant work, provides error check processes, and enhances data integrity, leading to more accurate and efficient submissions. The platform also provides real-time access to claims data submissions, which offers new tracking capabilities for servicers and FHA.
In addition, FHA has released initial reporting and dashboard capabilities on the Claims Module. These reports are available at the following frequencies: daily, weekly, monthly, quarterly, and yearly. The dashboard will showcase:
- All submitted claims by claim type and by the submitter;
- The number of suspended, rejected or deleted, and paid claims;
- The number of claims paid with the requested and actual claim amounts;
- Bulk upload claims summaries with completed successfully and failures.
FHA has added the remaining claim types to the Claims Module, modernizing the full claims process into one submission method. FHA will also be adding additional claims reporting, dashboards, and analysis functionality to further improve the FHA Catalyst: Claims Module.
FHA Catalyst Onboarding
FHA-approved mortgagees with access to the FHA Catalyst: Claims Module are currently able to submit all single-family forward mortgage claim types. FHA will be migrating all mortgagee users who submit claims to the module in the coming months as functionality is expanded.
Mortgagees should visit the FHA Catalyst User Access Management web page for guidance on requesting access to the FHA Catalyst: Claims Module.
About FHA Catalyst
FHA has embarked on a multi-year IT modernization initiative, FHA Catalyst, which is already improving how mortgagees and their authorized users do business with FHA. FHA Catalyst is supported by a $40 million appropriation from Congress and a partnership between the HUD Chief Information Officer (CIO) and the HUD Federal Housing Commissioner. FHA Catalyst is a secure, flexible, cloud-based platform that provides a modern, automated system for lenders, servicers, and other FHA program participants. FHA Catalyst enables FHA to more efficiently and effectively manage its programs and processes, benefiting the those who do business with FHA.