Electronic Data Interchange (EDI)
Financial incentives are driving EDI use in both government and industry. EDI was introduced to HUD in the early 1990s, resulting in faster payment of claims and greatly reducing the reporting and paperwork burden shouldered by FHA-approved lenders/servicers.
Electronic filing of Federal Housing Administration (FHA) single family (SF) mortgage insurance claims, mortgage loan default reporting, and mortgage record changes and terminations became mandatory by December 1997 for all mortgagees.
Mortgagees may use the FHA Connection via the Internet to satisfy the EDI mandate for reporting mortgage defaults and mortgage record changes and terminations to HUD. There is no plan currently for SF claims via the Internet. The FHA Connection is also a means of communicating a variety of information to lenders about SF FHA loans, and for mortgagees to report data to HUD. Mortgagees are encouraged to frequently visit the FHA Connection website as new reporting options are constantly being made available. The FHA Connection website provides additional information, contact phone numbers and on-line registration.
The Implementation Guide for Electronic Data Interchange
The HUD Implementation Guide for Electronic Data Interchange is available as a detailed reference manual for HUD's implementation of the following transaction sets: TS 260, Application for Mortgage Insurance Benefits; TS 264, Mortgage Loan Default Status; TS 266, Mortgage Record Change/Terminations; plus all adjunct transaction sets. The guide provides an overview of how EDI works, describes VAN communications, Trading Partner technical environment requirements, and implementation procedures. Data maps for main and adjunct transaction sets, communications envelopes, sample transactions, and data format specifications are also included. A brief overview of the Implementation Guide for Electronic Data Interchange can be viewed on screen by going to the table of contents. The entire EDI Implementation Guide is available in PDF format. We recommend you replace any previous versions. Also, make sure you check regularly for updates.
About This Guide, with Special Regard to six digit dates
Modifications have been implemented at the HUD EDI gateway which provide trading partners two options for satisfying 8-digit date requirements. First, mortgagees may continue to use X12 version 003032 through 003050 for each transaction set by modifying the current D6 date designation and implementing mapping changes to comply with the 8-digit dates. Second, mortgagees may choose to satisfy 8-digit date requirements by upgrading to X12 version 004010 or 004040. This option is preferred since it will also benefit mortgagees in that it includes all the changes and additional codes that have been approved by the X12 committee.
New EDI X12 users must notify HUD prior to implementing the sending of transactions. To do this, contact the HUD EDI Help Desk via e-mail to EDI.Help.Desk@hud.gov.
Users of HUD's FHA Connection and Direct Connect (Frame Relay) are advised that no changes are necessary. The FHA Connection website provides additional information, contact phone numbers and on-line registration.