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Monthly Mortgage Insurance Premiums - General Program Information

Questions and Answers

What is the Single Family Premium Collection Subsystem - Periodic (SFPCS-Periodic or SFPCS-P)?

SFPCS Periodic is a HUD system that tracks the collection of monthly mortgage insurance premiums (including late and interest charges) for both Risk-based and Section 530 programs at the case level. It also provides reports relating to monthly premium for cases in a lender's portfolio.

What HUD office is responsible for the collection of monthly mortgage insurance premiums?

The Single Family Insurance Operations Division (SFIOD) of HUD's Office of Financial Services is responsible for the collection of monthly mortgage insurance premiums.

What is included in my bill?

Billing information is created for all Section 530 and Risk-based cases requiring monthly mortgage insurance premium payments in your lending institution's portfolio (according to HUD's records). Billing occurs monthly on or about the 17th day of the month and includes any premium, late, and interest charges due through the billing period. Active cases receive $0.00 billing if no charges are assessed. Terminated cases are billed if there are any outstanding charges. Non-endorsed and invalid cases are not billed.

How do I get the bill?

See Billing questions and answers. Also, lenders with a portfolio of 3,000 cases or less can get a list of billed cases for online payment on the FHA Connection.

How do I pay my bill?

Monthly premium payments can be submitted online using the FHA Connection or through CPU to CPU batch file transmissions. For lenders with a portfolio of 3,000 cases or less, the FHA Connection provides a list of billed cases for which payment can be made. Lenders with a portfolio of over 3,000 cases do not get a list of cases for payment on the FHA Connection. Consequently, high volume lenders may choose to use the CPU to CPU batch file transmission method of payment.

How do I get set up to make monthly mortgage insurance premium payments?

See Getting Started - Monthly (Periodic) Premium Payments.

How do I get reports pertaining to the monthly mortgage insurance premium for my cases?

See Monthly Premium Report Files questions and answers.

When are monthly mortgage insurance premiums due?

Premiums are due the 1st day of the month following the billing. There is a grace period until the 10th day of the month. Payments with a received date after the 10th are assessed late charges. Payments with a received date after the end of the month are assessed interest charges the following month.

Are monthly premium payments required for a non-endorsed case?

A case for which FHA insurance is being requested (non-endorsed case) is not billed for monthly mortgage insurance premium. However, payments should begin on the first day of the month following the beginning of loan amortization, regardless of whether the case is endorsed or billed. For example, for a case with a beginning amortization date of August 2017, the first monthly MIP payment should be made on September 1, 2017.

What should I do if a non-endorsed case is canceled and I made payments on it?

Send a request for a refund or reallocation of the payments made on the canceled case. See refund questions and answers and reallocation questions and answers for further information.

How are lenders contacted by HUD with respect to FHA mortgage insurance and mortgage insurance premiums?

HUD uses several methods of communicating with lenders.

  • Email: Email notifications are sent when monthly mortgage insurance premium payments are received by HUD or there is a problem in settling a payment. The contact information the lender provided for the cash flow account setup for Title II Single Family Periodic (Monthly) Premiums is used. Contact information can be added or updated using HUD's Lender Electronic Assessment Portal (LEAP), which is accessed from the FHA Connection's Lender Functions menu.
  • If a CPU to CPU batch file transmission is rejected by HUD because of a format or control total issue, an email notification is sent to the technical contact specified by the lender on the Periodic Batch Transmission Signup Sheet. The technical contact can be changed by sending an email message to SfpaygovPeriodic@hud.gov.
  • Mortgagee Letters inform lenders of changes in Federal Housing Administration (FHA) operations, policies, and procedures.
  • HUD's Lender Electronic Assessment Portal (LEAP) maintains a list of lender addresses. Some addresses you may change through LEAP.
     
    Address Description Changed through LEAP?
    Geographic  Address where office (home office or branch office) is physically located.  P.O. Boxes are not acceptable. Yes
    *State cannot be changed
    Payee Address to which notification of payment for insurance benefits is mailed. No
    Administrative Address to which HUD correspondence for the lender is mailed. Yes
    Premium Address to which Advance Notices (prior to SFPCS Periodic implementation) and Advice of Mortgage for the main office are mailed; also, address used for mailing an SFPCS Periodic mortgage insurance premium refund, unless requested otherwise.  This address does not apply to branch offices. Yes
    CHUMS  Address HUD uses to conduct business relating to the application for insurance; address in HUD's Computerized Homes Underwriting Management System (CHUMS). Yes
    Endorsement  Address used for mailing a Single Family Premium Collection Subsystem-Upfront (SFPCS Upfront) mortgage insurance premium refund. Yes


How can I find out what loans we currently service?

The Portfolio report file is generated on request for lenders using the FHA Connection on the Internet. A Portfolio file is available on a weekly and monthly basis for lenders using the Alternate Report Retrieval process (secure file transfer process).

How is a change in the servicer of a loan reported to HUD?

A servicer change is reported to HUD through these two methods:

The Advance Notices report file generated at the beginning of the month provides lenders with the cases that were transferred to their portfolios in the prior month. The servicer on record in HUD's SFPCS Periodic system at the time the bill is generated is billed for the case that month.

How do I cancel periodic mortgage insurance premium for a case that has reached 22% equity for its Risk-based loan?

Change the month and year that the last monthly insurance premium is assessed using the Monthly MIP Cancellation function on the FHA Connection. Note: Monthly MIP Cancellation is only applicable to active risk-based cases that have a closing date after December 31, 2000 and a case number assignment date before June 3, 2013 and meet the eligibility requirements described in Mortgagee Letter 2000-46. For all other cases, use Insurance Termination (HUD Form 27050-A), Prepayment (Term Type 11) if the mortgage is paid in full before the maturity date.

What happens if there is an owed amount when (or after) the case is terminated?
The current servicer of the case is billed until the owed amount is paid. The "current servicer" is the lender on record in HUD's SFPCS Periodic system.

Can a case be transferred to another servicer/holder in SFPCS Periodic after it is terminated?
No. Contact the Single Family Insurance Operations Division, Systems Management Branch, Data Quality Control Section for assistance.