What types of business changes must a mortgagee report to FHA?

The mortgagee has an ongoing requirement to notify FHA of any changes to the information outlined in its application for FHA approval or in FHA’s eligibility requirements.

Information Update

An Information Update is any change to a mortgagee’s basic institution or branch information in the FHA systems that can be directly managed by the mortgagee.

Notice of Material Event

A Notice of Material Event is the method of submitting a required notice to FHA of a change to the information provided by the mortgagee at application as evidence of approval eligibility, or a change that affects the mortgagee’s standing as an FHA- approved mortgagee.

Change Request

A Change Request is the method of submitting information and/or business changes to FHA that requires FHA review and approval before acceptance. Any update or change that cannot be made by the mortgagee directly is submitted as a Change Request.

The mortgagee must submit all Information Updates, Notices of Material Event, and Change Requests to FHA using the Lender Electronic Assessment Portal (LEAP) within 10 business days of the change, unless otherwise specified in Handbook

4000.1 I.A.7.

The mortgagee must:

  •   include a cover letter signed by a corporate officer summarizing the business change(s); and
  •   submit any required documents as specified in Handbook 4000.1 I.A.3.c or as described in the LEAP User Manual.

The LEAP User Manual is located at: http://www.hud.gov/lenders under the LEAP Information link in the Approvals & Renewals section.

Handbook 4000.1 I.A.3.c & I.A.7 is available at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh.