The FHA Catalyst: Single Family Origination Module will provide single family lenders doing business with FHA a seamless and integrated technology solution for submitting, managing, and monitoring loan application, closing, and other data.
The initial functionality in this module was the Automated Underwriting System (AUS). The AUS offers lenders the option to obtain automated mortgage insurance eligibility indicators directly from FHA for single family forward mortgages.
Module Technology Enhancements
The FHA Catalyst: Single Family Origination Module allows lenders to submit loan application data via an Application Programming Interface (API) to FHA’s AUS, which uses business rules directly tied to its Single Family Housing Policy Handbook 4000.1. The FHA Catalyst: Single Family Origination Module will also interface with FHA’s TOTAL Mortgage Scorecard to provide an evaluation of the loan’s credit risk.
The Single Family Origination Module, with the first FHA-specific AUS, has several advantages for lenders originating FHA mortgages, including:
• Submission of loan application data directly from loan origination systems, with instant error codes and feedback message;
• Access to expanded feedback reports with actionable details directly from FHA policy;
• Receipt of scoring decisions from the FHA TOTAL Mortgage Scorecard; and
• File formats that use the MISMO 3.4 dataset, and the new Uniform Residential Loan Application that becomes effective industry-wide on March 1, 2021.
Lenders can also transmit the Uniform Closing Dataset (UCD) XML file and the Closing Disclosure PDF through the module. By submitting the UCD, FHA-approved Business to government (B2G) lenders will now be able to view endorsement certificate results within FHA Catalyst platform.
FHA Catalyst: Origination Module functionality will continue to be enhanced so that it will support a transformed and fully automated FHA mortgage origination process for lenders, based on an underlying unified case record.
FHA Catalyst Onboarding
FHA-approved lenders who have already adopted MISMO 3.4 may begin using the FHA Catalyst: Single Family Origination Module, once they have an interface between their LOS and the module. MISMO 3.4 adoption is a pre-requisite for integration with this module.
Lenders may request access to the FHA Catalyst: Single Family Origination Module via the FHA Resource Center by emailing email@example.com or by calling 1-800-CALL FHA (1-800-225-5342). Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at 1-800-877-8339.
More to Come
FHA will release additional functionality in the FHA Catalyst: Single Family Origination Module in the coming months to bring further benefits to lenders. The future state Single Family Origination Module benefits include:
• A fully automated origination process – featuring frequent automated synchronization between lenders’ loan origination system (LOS) and FHA Catalyst, each resulting in a series of machine- and human-readable, actionable messages guiding lenders on specifically how to proceed with the case;
• Third-party verification results – eliminating the need for paper or pdf documentation as evidence of underwriting diligence for areas such as income, assets, and employment;
• Automated and near-real-time validations for required government data – reducing the operational and paperwork burden associated with verifying borrower social security numbers, property addresses, and similar information for lenders;
• Eliminating the need for processing paper loan documents – moving away from “wet signatures” and paper processes to minimize shipping costs, safeguard borrower personally identifiable information (PII), and enable operational efficiencies for lenders.
About FHA Catalyst
FHA has embarked on a multi-year IT modernization initiative, FHA Catalyst, which is improving how mortgagees and their authorized users do business with FHA. FHA Catalyst is supported by a $60 million appropriation from Congress and a partnership between the HUD Office of the Chief Information Officer (CIO) and the Office of Housing. 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 those who do business with FHA.