If there is a default for this applicant, the system will say one of the following:

• There is a claim for this applicant.
• There is a default for this applicant.
• There is a foreclosure for this applicant.
• There is a Department of Justice Judgement against this applicant.

If there is more than one defaulted record in the CAIVRS database for this applicant's ID, the system will say:

There are multiple cases for this applicant.

The system will then provide the name of the agency reporting the default, what type of default has been reported to CAIVRS, a point-of-contact phone number for obtaining detailed information regarding the reported default, and then the CAIVRS Confirmation Code. Please be careful to record this information accurately. The system will prompt the caller through repeating the findings as many times as needed to ensure accuracy and completeness. Provide the applicant with these findings and assist the applicant to resolve the reported default, if possible.

If at any time you receive a message stating that the system is unavailable at this time or the database is unavailable at this time, please hang up and try calling the system a little while later.

If, after accurately following the instructions above, you are advised by the system:

If you need assistance, you may call the Credit Alert System Administrator at area code (301) 292-1661.
Or
Thank you for using HUD's Voice Response System.
Or
This call is being terminated.

call the CAIVRS system administrator at (301) 292-1661 for help.

How to Suppress Cases by Telephone - (Top)

Dial (304) 744-4073.

The system will say:

You have reached HUD's Credit Alert System. This is a federal government information system. Unauthorized or improper usage is subject to federal prosecution. System usage is monitored. Using this system constitutes acceptance of monitoring and responsibility for legal and proper usage.

Please enter your credit alert access code, and then press the pound key.

Enter your ten-digit CREDIT ALERT ACCESS CODE.

The system will say:

If you would like to suppress a case, please press 1 now. If you would like to make a credit alert inquiry, press 2. If the system does not prompt you for suppressing a case, and you should have suppression authority, your PIN has probably expired. Contact the CAIVRS administrator at caivrs_admin@hud.gov, or by phone on (301) 292-1661.

If you entered 1, the system will say:

Please enter your personal identification number.

Enter your assigned PIN.

If, instead of suppressing a case, you elect to make a Credit Alert Inquiry, enter 2 and go to the Credit Alert Inquiry instructions below.

The system will say:

• If the applicant's ID you are submitting for inquiry is a Social Security Number, press 7.
• If the applicant's ID you are submitting for inquiry is a Tax Identification Number, press 8.

Enter the appropriate number.

The system will say:

Please enter the applicant's Social Security Number or Tax Identification Number.

Enter the applicant's ID number.

The system will say:

You have entered... and repeat the ID number entered.

The system will say:

Please press Y if this is correct or N if not correct.

Enter the appropriate letter.

The system will say:

Please enter the case number to be suppressed.

Enter the Agency case number.

The system will say:

Please enter the reason for the suppression:

• For repayment, press 1.
• For administrative exception, press 2.
• If records in error, press 3.
• For other reasons, press 9.

Enter the appropriate number.

If the reason for suppression was repayment, the system will say:

Please enter the type of repayment:

• For payment in full, press 1.
• For compromised settlement, press 2.
• For installment plan, press 3.
• For IRS offset, press 4.

Enter the appropriate number.

The system will say:

Please enter the amount of repayment in whole dollars only and then press the pound key. You may enter up to six digits.

Enter the dollars repaid.

The system will say:

The case is now suppressed.

The system will say:

• If you would like to suppress another case for the same applicant, please press 1.
• If you would like to suppress another case for a different applicant, press 2.
• If you would like to make a credit alert inquiry, press 3.

Enter the appropriate number and follow the prompts again, or hang up.

Credit Alert Inquiry

If you entered 2 to make a credit alert inquiry, the system will say:

You will be asked to enter a number for the type of loan you are processing. Enter the number immediately. After you enter the number, you must enter the pound sign.

The system will then prompt you to enter a number to select one of the following options:

• a HUD Title I Loan, press 1.
• an FHA Single Family Loan, press 2.
• a Veteran's Administration Loan, press 4.
• a USDA Rural Housing Loan, press 5.
• a USDA Farm Program Loan, press 6.
• a Department of Education Loan, press 7.
• a Department of Education Loan, press 8.
• a Small Business Administration Loan, press 9.
• a Department of Justice J M D Loan, press 10.
• a Federal Deposit Insurance Corporation Inquiry, press 11.
• a Department of Justice E O U S A, press 12.
• a U S D A Rural Development DEBT, press 15.
• a U S D A FSL Loan or LDP, press 16.

Enter the appropriate number for the type of loan you are processing, and then press #.

The system will say:

• If the applicant's ID you are submitting for inquiry is a Social Security Number, press 7.
• If the applicant's ID you are submitting for inquiry is a Tax Identification Number, press 8.

Enter the appropriate number.

The system will say:

Please enter the applicant's Social Security Number or Tax Identification Number.

Enter the applicant's ID number.

The system will say:

You have entered... and repeat the ID number entered.

The system will say:

Please press Y if this is correct or N if not correct.

Enter the appropriate letter.

If the number entered is correct, press 7 and continue processing the inquiry.

If the number entered is not correct, press 8. The system will say:

Please enter the applicant's Social Security Number or Tax Identification Number.

The system will again say:

You have entered... and repeat the ID number entered.

and then say:

Please press Y if this is correct or N if not correct.

Enter the appropriate letter.

If the number entered is correct, press 7, and continue processing the inquiry. If it is not correct, repeat the process of entering the applicant's ID until it is correct.

The system will then search the CAIVRS database for any reported Federal credit default against the applicant's ID.

If no defaults are found, the system will then say:

There are no cases for this applicant.

The system will then provide the CAIVRS Confirmation Code for this inquiry. Be careful to copy this number to the loan application document accurately. The system will prompt you through repeating this information as many times as needed until you are satisfied that you have the correct number.

If there is a default for this applicant, the system will say one of the following:

• There is a claim for this applicant.
• There is a default for this applicant.
• There is a foreclosure for this applicant.
• There is a Department of Justice Judgement against this applicant.

If there is more than one defaulted record in the CAIVRS database for this applicant's ID, the system will say:

There are multiple cases for this applicant.

The system will then provide the name of the agency reporting the default, what type of default has been reported to CAIVRS, a point-of-contact phone number for obtaining detailed information regarding the reported default, and then the CAIVRS Confirmation Code. Please be careful to record this information accurately. The system will prompt the caller through repeating the findings as many times as needed to ensure accuracy and completeness. Provide the applicant with these findings and assist the applicant to resolve the reported default, if possible.

If at any time you receive a message stating that the system is unavailable at this time or the database is unavailable at this time, please hang up and try calling the system a little while later.

If, after accurately following the instructions above, you are advised by the system that you need assistance, call the CAIVRS system administrator at (301) 292-1661 for help.

Neighborhood Watch - (Top)

The Neighborhood Watch Early Warning System is a web-based software application using FHA-insured single-family mortgage loan performance data. It aids HUD and FHA staff in monitoring lenders and programs and lenders and the public in self-policing the industry. The Neighborhood Watch system currently addresses early defaults. It enables lenders and appraisers to identify and analyze patterns in loans that became 90 days delinquent in the first two years by:

• Loan type
• Geographic area, or
• Originating lender.

Loan information is displayed for a two-year loan origination period and is updated on a monthly basis. Default data is based on the first time loans within this period were reported to HUD as 90 days or more delinquent. Default statistics include "first defaults" on loans defaulted for the first time that may have subsequently cured. "Current defaults" are loans 90 days or more delinquent when reported and with active FHA insurance status. These loans are displayed in the statistics because it is important to note that a loan went into early default within the first 24 months of its origination.

Note: Statistics are based on loan volume by lender so system users should be alert when viewing the data for low volume lenders with high default and claim percentages.

The Neighborhood Watch System has an extensive "help" feature. If you are just starting to use the system, please review the help menu first. You will find help screens that explain the Early Warning and Analysis menu options to be particularly useful in navigating the system.

LASS - Lender Assessment Subsystem - (Top)

This page provides guidance for the approximately 7,500 non-supervised Title I and Title II lenders and loan correspondents who use the LASS system to submit their annual CPA prepared audit and financial statement to renew their FHA lender approval as part of the recertification process. Both lenders and their Certified Public Accountants use the LASS system.

All lenders must also submit an annual recertification form and pay an annual fee via an FHA Connection Account.

Accessing LASS via FHA Connection:

• Lenders and Loan Correspondents need a FHA Connection Account to access LASS. For FHA Connection assistance please email sfadmin@hud.gov or phone 800-CALL-FHA.
• Auditors need an Independent User ID to use the LASS system.
• Auditing Firms need a Unique IPA Identifier (UII) that must be included in each LASS submission.
• For LASS technical assistance - please check the LASS User Guide or contact the LASS technical support team at (202) 755-7400 Ext. 163 or email LASS@hud.gov.
• For Accounting and Auditing Issues - please check the LASS Line Item Definition Guide or contact the LASS accounting support team at (202) 755- 7400 Ext. 100 or email LASS@hud.gov.

User Manual for Lender Assessment Subsystem (LASS) - (Top)

We updated Chapters 1.1, 1.3, 2.0, 5.7, 5.8, 5.9 and 6.0 of the Single Family Housing LASS User's Manual in May 2007.

Frequently Asked Questions

Financial Data Template Definitions Guide - Release 5.0.0.0

Financial Assessment of Non-Supervised Lenders Frequently Asked Questions - (Top)

LASS Appeals Process
Lass Policy Questions
Lass Systems Questions

LASS Appeals Process Frequently Asked Questions - (Top)

How are lenders notified if they are withdrawn?

Lenders are notified at their address on record via certified mail that their FHA approval has been withdrawn. The lenders status in the LASS inbox also changes to "Withdrawn".

Why has my FHA approval been withdrawn?

FHA approval is withdrawn for any of the following reasons: 1) Annual recertification fee not received; 2) Annual financial statement audit not received; 3) Failure to respond to deficient or rejected audited financial statements within time set forth in notice of violation; 4) Insufficient response to deficient or rejected audited financial statements within time set forth in notice of violation.

How can I get my FHA approval reinstated?

Lenders can appeal the withdrawal within thirty (30) days of receipt of the certified letter of withdrawal letter, by either choosing a hearing or reinstatement. Lenders appeal by logging into LASS via the FHA Connection. For further guidance, see question 5.

If lenders choose not to appeal, their FHA approval will be terminated once the thirty (30) days from receipt of the certified letter of withdrawal expires. Lenders must wait one (1) year from the date of termination before they are eligible to reapply.

How many days does a lender get to decide to appeal the withdrawal of their FHA approval?

Lenders have thirty (30) days from the receipt of the certified letter of withdrawal to decide to appeal.

Where do lenders appeal?

Lenders appeal by logging into LASS via the FHA Connection. Click on the "Withdrawn" status in the LASS inbox and the appeals page will display. Read the appeals page to determine if you would like to have a hearing before the mortgagee review board (see question 6) or submit a reinstatement submission (see question 7). Advance to the next page to select either hearing or reinstatement.

What is a hearing?

Lender can opt to have a hearing in front of the Mortgagee Review Board (MRB) to appeal the withdrawal of their FHA approval. Once the lender submits their request for a hearing, the Office of General Counsel will contact the lender with a date and location for their case to be heard.

What is reinstatement?

A reinstatement is a submission of the financial statements, or a submission of a cure to a deficient or rejected submission, to HUD, via LASS. Reinstatement submissions are due within fourteen (14) days of choosing to appeal by reinstatement.

How long after selecting reinstatement does a lender have to complete the process?

Once reinstatement is selected, the lender must submit, via LASS, an acceptable new submission or an acceptable cure to a rejected or deficient submission within fourteen (14) days of choosing to appeal by reinstatement.

What happens if the reinstatement is not acceptable to HUD?

If HUD does not accept the reinstatement, the lender's FHA approval is terminated. The lender must wait one (1) year from the date of termination before they are eligible to reapply.

How can I get help responding to a rejected or deficient submission?

Lenders with a rejected or deficient submission should contact their LASS analyst. LASS analysts are identified in the "Reviewer's Name" column in the LASS inbox. Access the LASS inbox by logging into LASS via the FHA Connection. Contact the LASS analyst by calling HUD at (202) 755-7400. Follow the prompts to connect to the LASS analyst by last name.

If you cannot reach the assigned analyst via the voice mail prompts, please call the accounting/auditing helpline at (202) 755-7400 Ext. 100 for assistance in connecting to your LASS analyst.

How do I attach documents to a new, rejected or deficient submission?

All documents attached to a rejected, deficient or new submission must be saved as PDF files in order to be successfully uploaded. Please see the user guide for more information on uploading documents.

How are lenders notified if their reinstatement is accepted by HUD?

Lenders are notified that HUD accepted their reinstatement when the status displayed in their LASS inbox is "Reinstatement Pending". This signifies that the lenders submission has been accepted and the lender must execute the settlement agreement. See question 13. If the status is "Terminated", the lenders submission has not been accepted. Lenders should monitor their status daily by logging into LASS via the FHA Connection. See question 17 for definitions of each possible status.

What is required once the lenders reinstatement submission is accepted and the status changes to "Reinstatement Pending"?

Lenders must execute the settlement agreement and pay the reinstatement fee. To execute the settlement agreement, login to LASS via the FHA Connection and click on the status "Reinstatement Pending". The settlement agreement will display. Read the settlement agreement and scroll to the bottom to execute it. Print the settlement agreement to be mailed with the reinstatement fee. Once the settlement agreement has been executed, the status in the LASS inbox will change to "Awaiting Payment". The reinstatement fee must be paid in order to complete the reinstatement process. See question 14. Once HUD receives the reinstatement fee, the lender's FHA approval will be reactivated. The status in the LASS inbox will change to "Reinstated".

How much is the reinstatement fee and how do I pay it?

The reinstatement fee is $1,000 and should be mailed overnight with the settlement agreement to the Office of Lender Activities and Program Compliance. The reinstatement fee should only be mailed AFTER the submission has been accepted and the status in the LASS inbox is "Awaiting Payment". Please note that if the lender was also withdrawn for not paying the annual recertification fee, the outstanding recertification fee must be added to the reinstatement fee before the lender's FHA approval is reinstated. The OLA address is:

US Department of Housing and Urban Development
490 L'Enfant Plaza East, SW
Suite 3214
Washington, DC 20024.

How long will it take to be reactivated once HUD receives the reinstatement fee?

Once HUD receives the reinstatement fee, the lender's status will change to "Reinstated" in the LASS inbox. The reactivation takes approximately 24 hours to be effective. However, it may take a few more days before the lender will be able to access CAVIERS. Lenders should contact their Home Ownership Centers if they are experiencing problems.

Please outline the steps again for the reinstatement process.

1. Lender will receive certified letter of withdrawal from HUD.
2. Lender has thirty (30) days from receipt of letter to appeal via LASS.
3. Lender appeals via LASS. Lender can either choose a hearing or reinstatement.

1. If the lender chooses a hearing, the Office of the General Counsel will contact them with the date of the hearing.
2. If the lender chooses reinstatement, they have fourteen (14) days to submit an acceptable reporting package to HUD.

Please define each LASS status in the reinstatement process.

• "Withdrawn" - This status alerts the lender that they are no longer active as a FHA lender and allows the lender to start the appeals process if they so choose. Action required: Decide whether to appeal within 30 days of withdrawal letter.
  
  
• "Reinstatement Review" - This status alerts the lender that their submission is under review at HUD. No action required.
  
  
• "Reinstatement Cure Review" - This status alerts the lender that their submission is under review at HUD. No action required.
  
  
• "Reinstatement Pending" - This status alerts the lender that HUD has accepted their submission. Action required: Lender needs to execute the settlement agreement. Clicking on the "Reinstatement Pending" status in the LASS inbox accesses the settlement agreement.
  
  
• "Awaiting Payment" - This status alerts the lender that the $1,000 reinstatement fee (plus any outstanding annual recertification fees, if applicable) needs to be mailed to the Office of Lender Activities. Action required overnight reinstatement fee to HUD.
  
  
• "Reinstated" - This status alerts the lender that the reinstatement process is complete and that their FHA approval has been reinstated. No action required.
  
  
• "Withdrawal Appeal Pending" - This status alerts the lender that they chose to appeal the withdrawal of their FHA approval through a hearing in front of the Mortgagee Review Board (MRB). No action required. Office of General Counsel will contact lender.
  
  
• "Terminated" - This status, alerts the lender that HUD has not accepted their appeal and they are no longer a FHA approved lender. No action required. The lender is eligible to reapply after one (1) year from the date of termination.

How do I contact HUD if I have technical or accounting questions?

Contact the Office of Lender Activities and Program Compliance at (202) 755-7400 Ext. 163 for LASS technical assistance; accounting/auditing questions, call (202) 755-7400 Ext. 100.

You can also email any technical or accounting questions to LASS@hud.gov. Questions not related to LASS or recertification should be directed to the Office of Lender Activities and Program Compliance at (202) 755-7400 Ext. 161.

Policy Frequently Asked Questions - (Top)

Who is required to submit financial statements using the Lender Assessment Subsystem (LASS)?

HUD-approved Title I and Title II non-supervised lenders, non-supervised mortgages, and non-supervised loan correspondents (collectively referred to as "lenders") with fiscal years ending on or after September 30, 2002.

When is the submission due?

The electronic submission of the financial statements must be submitted to HUD annually no later than 90 days after the end of the lender's fiscal year.

How are extension requests submitted?

For each reporting period (i.e., annually), lenders are permitted to request one 30-day extension. The request must be received no earlier than 45 days prior to the submission due date and no later than 15 days prior to the submission due date. All extension requests are submitted through LASS. The "Request Extension" link is accessible by logging into LASS via the FHA Connection.

Per Mortgagee Letter 95-6, a lender's extension request will be granted only for catastrophic events. Lenders are notified through the LASS system whether the extension request was granted or denied.

What happens if the submission is not filed on time?

The lender is notified via certified mail that they are subject to administrative action if an acceptable submission is not received within 30 days of receipt of the letter. If the submission is deemed deficient by HUD and cannot be cured within the 30 day time period, the lender is subject to withdrawal.

Please note that lenders who received a notice of violation due to late filing of their submission will NOT receive an additional notice of violation if their submission is deemed deficient or rejected. Lenders should monitor their status by checking their LASS inbox periodically. If the status is "Rejected", "Deficient" or "Insufficient Cure", the lender needs to address the deficiencies identified by HUD. Lenders can review their deficiencies by accessing "Reports" and clicking on "Lender Deficiency Report".

If the status is "Audit Accepted", HUD has accepted the reporting package and no further action is required for the financial statement portion of the recertification process. See Question 9 in the FAQs LASS System for a definition of each possible status.

How do I change my fiscal year end (FYE)?

HUD will accept the lender's audited financial and compliance data under the lender's new fiscal year end (FYE) date as long as the lender's prior year financial and compliance data was received and approved by HUD within the past 18 months. Otherwise, the lender should submit their audited financial and compliance data under the lender's original FYE. All FYE change requests should be made before the end of the current fiscal year. Requests for change should be emailed to LASS@hud.gov.

Are hardcopy financial statements required to be mailed to HUD in addition to the electronic submission?

No, hardcopy financial statements are NOT required to be mailed and will not be accepted by HUD. All audited financial statements must be submitted electronically through LASS.

If a Title II mortgagee is also a Ginnie Mae Issuer, a separate paper copy of the audited financial statements must also be submitted to Ginnie Mae for review. Please contact Ginnie Mae for guidance.

Does LASS require a special format for reporting the electronic submission of the audited financial statements?

Financial data is reported on the Financial Data Template (FDT). The FDT follows the traditional format of basic financial statements. The FDT consists of the Balance Sheet, Statement of Operations and Equity, and the Statement of Cash Flow. In addition to the basic financial statements, LASS also contains a Computation of Adjusted Net Worth and Computation of Liquidity (if applicable).

An updated Line Item Definition Guide, which defines each line in LASS, is available.

How is the financial and compliance data submitted via LASS evaluated?

HUD personnel review the data for compliance in accordance with Title 24 Code of Federal Regulations (CFR) Part 202, the HUD Consolidated Audit Guide 2000.4, Mortgagee Handbooks 4700.1 & 4060.1, Mortgagee Letters and other guidance as established and disseminated by HUD.

What basis of accounting is acceptable for the preparation of the financial statements?

The financial statements must be prepared in accordance with generally accepted accounting principles (GAAP).

What auditing standards are used to conduct the audit?

The audits of all FHA approved lenders must be conducted in accordance with the generally accepted government auditing standards (GAGAS).

How are the financial data and the compliance information etc., reported via LASS?

The submission consists of the Financial Data Template (FDT) and the Data Collection Form (DCF). The FDT collects financial data and consists of the Balance Sheet, Statement of Operations and Equity, and the Statement of Cash Flow. The DCF collects information on the lender, auditor and the audited financial statements.

The General Information tab of the DCF collects the contact information for both the lender and auditor. The Financial Statement tab of the DCF collects information about the audited financial statements.

An updated Line Item Definition Guide, which defines each line in LASS, is available.

Are any of the auditor's reports required to be electronically submitted via LASS?

Yes. Questions G3000-090, G30000-100, and G3000-110 on the Data Collection Form (DCF) provide detail links where hand signed copies of the Independent Auditor's Report on Financial Statements and Supplemental Information, Independent Auditor's Report on Internal Controls and Independent Auditor's Report on Compliance with Specific Requirements Applicable to Non-Major/Major HUD Programs are to be attached, respectively. The reports must be hand signed, on the auditor's letterhead and saved as PDF files. Acceptable formats of a hand signature: a) scanned copy of original document with hand signature; or, b) image file containing legal hand signature inserted onto document.

Are all lenders required to submit an Independent Auditor's Report on Internal Controls and an Independent Auditor's Report on Compliance with Specific Requirements Applicable to Non-Major/Major HUD Programs?

Yes, all FHA approved lenders are required to submit both the Independent Auditor's Report on Internal Controls and the Independent Auditor's Report on Compliance with Specific Requirements Applicable to Non-Major/Major HUD Programs. Please note, per Mortgagee Approval Handbook 4060, major program mortgagees are subject to an audit of their compliance with HUD major programs. Non-major program mortgagees are subject to a review of their compliance with HUD non-major programs. Major program means an individual assistance program or a group of programs in a category of Federal financial assistance, which exceeds $300,000 during the applicable year. A project, which has an outstanding HUD-insured or guaranteed loan balance exceeding $300,000 as of the reporting date, shall be considered a major program. A mortgagee or loan correspondent, which originates and/or services an aggregate of FHA-insured loans exceeding $300,000 during the period under audit, is considered a major program.

Are the footnotes required to be submitted via LASS?

Yes, the footnotes are required to be submitted via LASS. They are attached to the "Footnotes" tab under the "Notes & Findings" header. The footnotes must be saved as a PDF file in order to be uploaded.

Are audit finding(s) and corrective action plan(s) required to be submitted via LASS?

Yes, if applicable, audit findings and corrective action plans are required to be uploaded and submitted via LASS. They are attached, respectively, to the "Audit Finding" and "Action Plan" tabs under the "Notes & Findings" header. The audit findings and corrective action plans must saved as PDF files in order to be uploaded. If either question G3000-040 or G3000-090 on the Data Collection form was answered "Yes", it is required to upload an attachment to both the audit finding and action plan tabs.

And/or:

If an attachment is uploaded to the "Audit Finding" tab, an attachment must be uploaded to the "Action Plan" tab. The inverse is also true, if an attachment is uploaded to the "Action Plan" tab, an attachment must be uploaded to the "Audit Finding" tab.

What does the SAS 29 Opinion refer to on the Data Collection Form, Financial Statement tab, Question G3000-012?

The SAS 29 Opinion refers to the American Institute of Certified Public Accountants Statement on Auditing Standards Number 29. This SAS addresses the auditor's opinion on required supplementary information (RSI) that is not part of the basic financial statements. Currently, the RSI for both the Title I and Title II programs is the Net Worth Calculation, as stipulated in the HUD Consolidated HUD Audit Guide. Auditors should include the computation of adjusted net worth and the SAS 29 opinion on it in the hardcopy financial statements.

Is the SAS 29 Opinion on the Net Worth Calculation required for non-profit FHA approved lenders subject to an A-133 audit?

No, it is not required at this time under an A-133 audit.

What is the liquidity requirement?

Title 24 Code of Federal Regulations (CFR) Part 202 requires all FHA approved lenders to maintain 20% of their adjusted net worth, calculated for HUD purposes, in liquidity, up to $100,000.

If there is a reportable condition, material weakness or non-compliance issue noted during the audit, does it need to be corrected prior to submitting via LASS?

No, although it may need corrected prior to being recertified. If a reportable condition, material weakness or compliance issue has not been corrected prior to the due date, the lender should still submit. If the LASS team concludes more information on the reportable condition, material weakness or compliance issue is required in order to make a recommendation for recertification, the lender will be required to submit additional information prior to being recertified.

If the reportable condition, material weakness or compliance issue has been corrected and guidance is required on what should be submitted, please call the accounting/auditing helpline at (202) 755-7400 Ext. 100 or email LASS@hud.gov.

Is the latest version of the HUD Consolidated Audit Guide available?

The latest version of the HUD Consolidated Audit Guide for Audits of HUD Programs is available at the HUD Office of Inspector General Website. Please note the minimum required net worth for nonsupervised loan correspondents is $63,000 per 24 CFR Part 202. The HUD Consolidated Audit Guide is in the process of being updated to reflect this change.

Where can I find the definitions for each line in the Financial Data Template (FDT) and Data Collection Form (DCF)?

The Line Item Definition Guide defines each line of the Financial Data Template (FDT) and Data Collection Form (DCF). There is also an icon on each LASS page of the FDT and DCF titled "Line Item Definitions" that allows the user to search for line item definitions by line number.

What guidance is available to users of LASS?

For technical guidance, the LASS User Manual provides detailed step-by-step instruction on how to obtain a user ID, how to access the system, how to create a submission, the auditor procedures and how to respond to rejected/deficient submission.

For accounting guidance, the Line Item Definition Guide is available. This guide provides a definition of the type of information that should be entered on each line of the Financial Data Template (FDT) and Data Collection Form (DCF).

In addition, the users should understand the accounting principles and transactions applicable to their business case. For accounting principles and information on the proper accounting for certain transactions, users should reference generally accepted accounting principles (GAAP) and/or Financial Accounting Standards Board (FASB) publications. The user should first contact the auditor who performed the audit if they have difficulties in determining the proper data input into LASS. If additional assistance is needed, please call the LASS accounting/auditing helpdesk at (202) 755-7400 Ext. 100. Users can also refer to the generally accepted auditing standards (GAAS) or Government Auditing Standards (GAGAS) to aid in the completion or understanding the DCF.

Who do I contact with questions that are not answered by the user guide, FDT Line Item Definition Guide, or my auditor?

Contact the Office of Lender Activities and Program Compliance at (202) 755-7400 Ext. 163 for LASS technical assistance; accounting/auditing questions, call (202) 755-7400 Ext. 100.

You can also email any technical or accounting questions to LASS@hud.gov. Questions not related to LASS or recertification should be directed to the Office of Lender Activities and Program Compliance at (202) 755-7400 Ext. 161.

Systems Frequently Asked Questions - (Top)

What is the web address to access LASS?
How do I get a LASS user ID?
What are the LASS user roles?
How is access to LASS assigned to users?
What does the "Unauthorized" error message indicate when attempting to logon?
I am performing the Auditor Data Entry role or the Independent Public Accountant (IPA) role, but my client is not listed in the drop down selection in LASS. Why?
How are passwords reset?
Please provide a general overview on how to submit electronically.
What does each status mean?
What lines in LASS Financial Data Template (FDT) or Data Collection Form (DCF) are mandatory?
Can additional detail lines be added to the Financial Data Template (FDT)?
I am not able to change the amount on the Financial Data Template (FDT), line 403, Loss/Gain, on the Cash Flow Statement, therefore, my cash flow statement is not balancing. How do I correct this?
An error message appears stating that the series of questions starting with G3000 need to be completed. Where are they located?
What is the Unique IPA Identification (UII)?
Where and how are the footnotes, audit findings (if applicable) and corrective action plans (if applicable) attached to the submission?
Where and how are the Independent Auditor's Reports attached to the submission?
How do I detach a file(s)?
An error appears when the "Submission Completeness Check" button is clicked. What does this mean?
An error message appears requiring an attachment be uploaded to the "Audit Findings" and/or "Action Plan" tabs, but there were no audit findings and, therefore, no action plans. What can be done?
If during the attestation, the Independent Public Accountant (IPA) does not agree to the data entered in LASS, how can it be changed?
The status is in "IPA Agree", but changes need to be made. How can this be done?
Once the Independent Public Accountant (IPA) agrees to the data in the submission, what is the next step?
How do I know if the submission has been accepted?
How do I know if the submission has not been accepted?
What needs to be done if the submission status is "Rejected"?
What needs to be done if the submission status is "Deficient"?
What needs to be done if the submission status is "Insufficient Cure"?
Who can attach a cure to a deficient submission?
What could be the problem if the lender cannot successfully attach a cure to the submission?
If the cure requires a scanned document, how are they attached?
If the submission was not acceptable, why was I not notified?
How do I contact HUD if I have technical or accounting questions?

What is the web address to access LASS? - (Top)

Lenders always logon to LASS via the FHA Connection website

Auditors always logon to LASS via the Secure Systems website

How do I get a LASS user ID? - (Top)

Each LASS user must have a HUD issued ID. Employees at the FHA approved lending institution register for either standard user IDs or application coordinator IDs via the FHA Connection website.

See user guide chapter 1.1 "Lender Registration" of the LASS User Manual for step-by-step instruction on registering for IDs.

Employees at the CPA firm register for Independent User IDs via the Secure Systems website.

See user guide chapter 1.2 "Auditor Registration" of the LASS User Manual for step-by-step instruction on registering for IDs.

Once each user has an ID, the FHA Application Coordinator assigns the ID a role in LASS. See question 3 for role definitions and question 4 for instruction on role assignment.

What are the LASS user roles? - (Top)

Lender Submitter - The Lender Submitter is an employee at the FHA approved lending institution that performs the data entry of the financial statement information into LASS. It is required to have a Lender Submitter.

Auditor Data Entry - The Auditor Data Entry role is an employee at a CPA firm, independent of the FHA approved lender, who performs the data entry of the financial statement information into LASS. It is not required to have an Auditor Data Entry role.

Independent Public Accountant (IPA) - The IPA is an employee at a CPA firm, independent of the lender, who performs the attestation on the lender's submission. It is required to have an IPA.

How is access to LASS assigned to users? - (Top)

The FHA Application Coordinator assigns each user's ID a LASS role (see Question 3 for LASS role definitions) via the FHA Connection ID Administration link. Here is a brief outline:

1. Login to FHA Connection
2. Click on ID Maintenance
3. Click on ID Administration
4. Enter user's ID in "By ID" field
5. User's information auto-populates the screen
6. Select appropriate role
7. Click send

See user guide chapter 1.3 "Role Code Definitions & Assigning Role Codes" of the LASS User Manual for step-by-step instruction on how to assign roles and access to LASS.

What does the "Unauthorized" error message indicate when attempting to logon? - (Top)

It could indicate that the user ID has not been assigned access to LASS. Please see Question 4 or see user guide chapter 1.3 "Role Code Definitions & Assigning Role Codes" of the LASS User Manual for step-by-step instruction on how to assign roles and access to LASS.

It could also indicate that the login failed due to three unsuccessful login attempts or the expiration of the user's password. Please see Question 7 for guidance on resetting passwords.

I am performing the Auditor Data Entry role or the Independent Public Accountant (IPA) role, but my client is not listed in the drop down selection in LASS. Why? - (Top)

Most likely this indicates that the FHA Application Coordinator has not assigned the auditor's Independent User ID a role in LASS. See Question 4 or see the user guide Chapter 1.3 "Role Code Definitions & Assigning Role Codes" of the LASS User Manual for step-by-step instruction on how to assign roles and access to LASS.

How are passwords reset? - (Top)

Both lenders and auditors are locked out of their respective systems after three unsuccessful login attempts and must have their passwords reset. Passwords must also be reset if they expire (i.e. user has not logged in within a certain amount of days).

Lenders - The FHA Application Coordinator can reset passwords for the FHA Connection users' IDs. Passwords can also be reset by emailing SF Administration or LASS Security Administrator, or by calling the Home Ownership Center that covers your state.

Auditors - Auditors passwords are reset by the Technical Assistance Center (TAC), regardless of which REAC system the auditor is associated. Auditors' passwords can also be reset by emailing the LASS Security Administrator.

Auditors are prompted by the system to change their passwords every twenty-one (21) days. If the twenty-one days expire without the password being changed, it must be reset.

Please provide a general overview on how to submit electronically. - (Top)

A. Financial Data Template (FDT) and Data Collection Form (DCF), collectively called the submission, are completed by LASS data entry role.

B. Independent Public Accountant performs attestation function.

C. Lender submits submission to HUD within ninety (90) days of fiscal year end.

D. On-time or late submission reviewed by HUD and deemed sufficient: Status changes to "Audit Accepted".

E. On-time submission reviewed by HUD and deemed deficient: Lender is contacted to submit cure(s). Status changes to "Rejected" or "Deficient".

F. Late submission reviewed by HUD and deemed deficient: Lender is contacted to submit cure(s), time permitting (i.e., cure period has not elapsed). Status changes to "Insufficient Cure" or "Rejected". If a submission is late, it is automatically reviewed as a cure.

For a more detailed explanation on completing the lender's LASS submission, see the LASS User Manual.

What does each status mean? - (Top)

• Draft - Submission has been created. Action required: Complete submission.
  
  
• Review - Submission was on time and is under review at HUD. No action required.
  
  
• Review Cure - Submission was either late or a cure to a deficient submission was submitted and is under review at HUD. No action required.
  
  
• Deficient - Lender needs to address deficiencies in submission via LASS. Lenders can review the deficiencies by accessing "Reports" and clicking on "Lender Deficiency Report". Action required: Submit cure to HUD.
  
  
• Insufficient Cure - Lender needs to address deficiencies in submission via LASS. Lenders can review the deficiencies by accessing "Reports" and clicking on "Lender Deficiency Report". Action required: Submit cure to HUD.
  
  
• Rejected - Lender needs to address reason for rejection. Action required: Submit cured submission to HUD.
  
  
• IPA Review - IPA is performing attestation. Action required: IPA must submit reviewed submission back to lender's LASS inbox.
  
  
• IPA Agree - IPA agreed to the data and it is ready to be submitted to HUD by the lender. Action required: Lender must submit submission to HUD.
  
  
• IPA Disagree - the IPA disagreed to the data and it must be edited by the lender and resubmitted to the IPA for attestation. Action required: Edit data and resubmit to IPA.
  
  
• Withdrawn - the lender's FHA approval has been withdrawn. Lender can appeal the withdrawal via LASS. See FAQs for Appeals Process or see the user guide chapter 6.0 "Responding to a Withdrawn Submission" of the LASS User Manual for step-by-step instruction on how to assign roles and access to LASS.
  
  
• Terminated - the lender's FHA approval has been terminated. Lender must wait one (1) year from date of termination to reapply. Contact the Office of Lender Activities at (202) 755-7400 Ext. 163 or email the LASS Security Administrator.
  
  
• Audit Accepted - Submission has been accepted and the financial statement portion of the reinstatement process is complete. No action required.

What lines in LASS Financial Data Template (FDT) or Data Collection Form (DCF) are mandatory? - (Top)

Lines that are mandatory are identified with an asterisk (*).

What if the mandatory lines, denoted by an asterisk (*), are not applicable?

If the mandatory line is not applicable, enter zero (0). You must manually type "0" into each line with an asterisk that does not apply.

Can additional detail lines be added to the Financial Data Template (FDT)? - (Top)

No, it is not possible for a user to add detail lines. Please make sure the Financial Data Template (FDT) does not already provide a line for the account. Definitions of each line are provided in the Line Item Definition Guide. There is also an icon on each page of the FDT titled "Line Item Definitions", which allows the user to search for line item definitions by line number.

If additional detail lines are needed to accommodate the accounts, combine the accounts in the most logical way and indicate in the description each account included. Please do not input "Other" on the detail description line or the submission will be rejected.

I am not able to change the amount on the Financial Data Template (FDT), line 403, Loss/Gain, on the Cash Flow Statement, therefore, my cash flow statement is not balancing. How do I correct this? - (Top)

Financial Data Template, line 403, is auto-populated from the summation of FDT lines 703, 704, 705, 706, 707, 708, 715 and 716 from the Income Statement. These FDT line items represent the gains or losses reported by the lender. Gains and losses represent the difference between the amount an asset was purchased for and the amount the asset was sold. The actual cash received for the sale is not equal to the gain or loss. However, the gain or loss directly increases or decreases the revenue and net income/loss reported on the income statement. Therefore, in order to calculate the cash position on the Cash Flow Statement, the net income/loss must be adjusted to reflect the cash transaction. The FDT automatically backs out the net gain or loss from the income statement by posting the reciprocal sum on line 403. In order for the Cash Flow Statement to balance, the lender then needs to record the CASH portion of the gain and loss transactions within the Operating Activities and/or Investing Activities, whichever is appropriate (see FASB and GAAP guidance to determine proper classification of transaction). Use the lines labeled "Other" if another applicable line is not available. Group similar transactions together in the "Details" line for "Other" if there are not enough lines to list each transaction.

An error message appears stating that the series of questions starting with G3000 need to be completed. Where are they located? - (Top)

The G3000 series of questions are on the Financial Statement tab in the Data Collection Form (DCF). When you click on the Data Collection Form (DCF) link, it defaults to the General Information tab; please click on the tab next to it, Financial Statements.

What is the Unique IPA Identification (UII)? - (Top)

The Unique IPA Identification (UII) is a five (5) digit identification number for the independent CPA firm that performs the attestation function. If the audit firm has previously done work with REAC, they may already have a UII. The UII is associated with the CPA firm's tax ID number and zip code. If the CPA firm does not have a UII, the ID assigned as the Independent Public Accountant (IPA) applies for it via the Secure Systems website.

The UII number will be instantaneously displayed upon completion of the registration process. The UII is entered on the Data Collection Form (DCF), General Information tab, question G2200-009.

See user guide chapter 1.2, "Auditor Registration" of the LASS User Manual for step-by-step instruction on how to obtain a UII.

Where and how are the footnotes, audit findings (if applicable) and corrective action plans (if applicable) attached to the submission? - (Top)

The footnotes, audit findings and corrective action plans are attached under the Notes & Findings link. The documents must be saved as PDF files in order to be attached to their respective tabs.

See user guide chapter 5.8, "Notes & Findings" of the LASS User Manual for step-by-step instruction on how to attach footnotes, audit findings (if applicable) and corrective action plans (if applicable).

Where and how are the Independent Auditor's Reports attached to the submission? - (Top)

Copies of hand signed Independent Auditor's Reports are attached to the Data Collection Form, Financial Statement tab as PDF files. Questions G3000-090, G3000-100 and G3000-110 provide detail links to attach copies of hand signed Independent Auditor's Report on Financial Statement and Supplemental Data, Independent Auditor's Report on Internal Controls and the Independent Auditor's Report on Compliance with Specific Requirements Applicable to Non-Major/Major HUD Programs, respectively.

Acceptable formats of a hand signature: a) scanned copy of original document with hand signature; or, b) image file containing legal hand signature inserted onto document.

How do I detach a file(s)? - (Top)

Files cannot be detached. If you have attached the wrong file, you can attach and save a new file over the existing one.

An error appears when the "Submission Completeness Check" button is clicked. What does this mean? - (Top)

Follow the error detail(s) to the indicated form(s) and edit data by consulting the hardcopy financial statements and reports. If further guidance is needed, consult with your auditor. If additional assistance is needed, please call the LASS accounting/auditing helpdesk at (202) 755-7400 Ext. 100.

An error message appears requiring an attachment be uploaded to the "Audit Findings" and/or "Action Plan" tabs, but there were no audit findings and, therefore, no action plans. What can be done? - (Top)

If either question G3000-040 or G3000-090 on the Data Collection Form (DCF) was answered "Yes", it is required to upload an attachment to the audit finding and action plan tabs.

And/or:

If an attachment is uploaded to the "Audit Finding" tab, an attachment must be uploaded to the "Action Plan" tab. The inverse is also true, if an attachment is uploaded to the "Action Plan" tab, a corresponding attachment must be uploaded to the "Audit Finding" tab.

See user guide chapter 5.8, "Notes & Findings" of the LASS User Manual for step-by-step instruction on how to attach audit findings and corrective action plans.

If during the attestation, the Independent Public Accountant (IPA) does not agree to the data entered in LASS, how can it be changed? - (Top)

The Independent Public Accountant (IPA) must click on the "disagree" radio button to one of the six auditor procedures in the Agreed-Upon-Procedures Report if they do not agree with the data entered in LASS. The submission is returned in editable format to the LASS inbox of the ID that performed the data entry. Once the required edits have been made, the submission must be submitted again to the IPA for review.

The status is in "IPA Agree", but changes need to be made. How can this be done? - (Top)

Once the status is "IPA Agree", the submission is in read-only format to all users. Please email the request for deletion of the submission to LASS@hud.gov.

Once the Independent Public Accountant (IPA) agrees to the data in the submission, what is the next step? - (Top)

The Lender Submitter logs into LASS via the FHA Connection and opens the submission. Lender Submitter clicks the "Submit Financial Data" radio button to transmit the submission to HUD.

See user guide chapter 5.12, "Submit to HUD for Review" of the LASS User Manual for step-by-step instruction on how transmit submission to HUD.

How do I know if the submission has been accepted? - (Top)

The status of the submission is displayed in the LASS inbox of the lender. The LASS inbox is accessible by logging into the FHA Connection.

If the status is "Audit Accepted", the financial statement portion of the recertification process is complete. The "Audit Accepted" status is the only notification that FHA approved lenders will receive that their submission has been accepted. See question 9 for definitions of other possible statuses.

If the status is "Rejected", "Deficient" or "Insufficient Cure", the lender can access the deficiency reasons by clicking on "Lender Deficiency Report" under the "Reports" link via LASS. Lenders can also be put in contact with their assigned analyst to discuss the deficiencies by calling the LASS accounting/auditing helpdesk at (202) 755-7400 Ext. 100.

How do I know if the submission has not been accepted? - (Top)

If an on-time submission has been rejected or deemed deficient by HUD, lenders will be notified via certified mail at the lender's address of record. The letter will discuss the rejection or deficiency reasons. In addition, lenders can access the deficiency reasons by clicking on "Lender Deficiency Report" under the "Reports" link. Lenders can also be put in contact with their assigned analyst to discuss the deficiencies by calling the LASS accounting/auditing helpdesk at (202) 755-7400 Ext. 100.

Lenders are granted thirty (30) days from receipt of the certified letter to submit an acceptable response via LASS or be subject to administrative action. Questions should be directed to the assigned LASS analyst listed in the right hand column of the LASS inbox.

Please note that lenders who received a notice of violation due to late filing of their submission will NOT receive an additional notice of violation if their submission is deemed deficient. Lenders should check their status periodically via the LASS inbox until the status reads "Audit Accepted".

What needs to be done if the submission status is "Rejected"? - (Top)

A submission has been rejected so that the data can be edited. A submission is rejected for various reasons and a letter will be sent via certified mail to the lender's address of record outlining the reasons for rejection. The lender has 30 days from receipt of the letter to correct the submission via LASS.

See user guide chapter 5.14 "Responding to a Rejected Submission" of the LASS User Manual for step-by-step instruction on how to assign roles and access to LASS. (Please note that lenders who received a notice of violation due to late filing of their submission will NOT receive an additional notice of violation if their submission rejected. Lenders should check their status periodically via the LASS inbox until the status reads "Audit Accepted".)

What needs to be done if the submission status is "Deficient"? - (Top)

A submission is marked deficient when additional information is needed before HUD can recommend the lender be recertified. The lender will be notified via certified mail that their submission has been deemed deficient and that a cure must be submitted via LASS within thirty (30) days.

Lenders can review their deficiencies by accessing "Reports" and clicking on "Lender Deficiency Report". The lender has 30 days from receipt of the letter to submit an acceptable cure through LASS. Cures must be PDF files in order to be uploaded to LASS.

See user guide chapter 5.13 "Responding to a Deficient Submission" of the LASS User Manual for step-by-step instruction on how to respond to a deficient submission.

Please note that lenders who received a notice of violation due to late filing of their submission will NOT receive an additional notice of violation if their submission is deemed deficient. Lenders should check their status periodically via the LASS inbox until the status reads "Audit Accepted".

What needs to be done if the submission status is "Insufficient Cure"? - (Top)

Insufficient cure status either means the submission was late and deemed deficient, or the cure submitted to an on-time submission is unacceptable, incomplete or deemed deficient. Either way, additional information is needed before HUD can recommend the lender be recertified. Lenders submit additional information via LASS, time permitting.

A notice of violation is sent via certified mail to lenders whose submissions are late or deficient. The notice of violation grants thirty (30) days from its receipt to submit an acceptable submission or cure. Lenders will not receive an additional notice of violation if the submission or cure is unacceptable (i.e. "Insufficient Cure" status).

However, lenders are permitted to submit additional cures if the initial thirty (30) day time period has not expired.

Lenders can review their deficiencies by accessing "Reports" and clicking on "Lender Deficiency Report". Cures must be PDF files in order to be uploaded to LASS.

See the user guide chapter 5.13 "Responding to a Deficient Submission" of the LASS User Manual for detailed step-by-step instruction on how to respond to a deficient submission.

Who can attach a cure to a deficient submission? - (Top)

The Lender Submitter Role and the Auditor Data Entry role both have the capability of attaching cures to the deficient submission. However, only the Lender Submitter Role can submit the cures to HUD.

What could be the problem if the lender cannot successfully attach a cure to the submission? - (Top)

Make sure the cures are in an acceptable format. They must be saved as PDF files. Cure files that are too large may present problems when trying to attach. As the LASS system provides four cure tabs, divide larger files into four smaller files.

If the cure requires a scanned document, how are they attached? - (Top)

Scanned documents must be saved as PDF files and attached to the submission.

See the user guide chapter 5.13 "Responding to a Deficient Submission" of the LASS User Manual for detailed step-by-step instruction on how to respond to a deficient submission.

If the submission was not acceptable, why was I not notified? - (Top)

Lenders who received a notice of violation due to late filing of their submission will NOT receive another letter if their submission is deemed deficient or rejected. Lenders should check their status periodically via the LASS inbox until the status reads "Audit Accepted".

If the lender submitted a response to a submission deemed deficient and it was not acceptable, they will not receive another letter. They should monitor their status via the LASS inbox until the status reads "Audit Accepted".

If the lender submits submitted a response to a rejected submission and it was not acceptable, they will not receive another letter. They should monitor their status via the LASS inbox until the status reads "Audit Accepted".

How do I contact HUD if I have technical or accounting questions? - (Top)

For technical questions contact the Office of Lender Activities and Program Compliance at (202) 755-7400 Ext. 163; accounting/auditing questions, call (202) 755-7400 Ext. 100.

You can also email any technical or accounting questions to LASS@hud.gov. Questions not related to LASS or recertification should be directed to the Office of Lender Activities and Program Compliance at (202) 755-7400 Ext. 161.

Appraiser and Valuation - (Top)

Frequently Asked Questions Valuation Protocol

Is there a test required for appraisers to perform FHA appraisals?

Yes, appraisers must pass the FHA Appraiser exam to perform FHA appraisals as of February 1, 2000.

How can lenders recognize that appraisers are approved under the new program when ordering case numbers?

HUD has a list of existing appraisers found on the lender's FHA Connection. New appraisers must go through an application process (complete Form HUD-92563, "Fee or Roster Designation-Application For Fee Personnel Designation") and pass the FHA appraiser exam in order to be placed on the FHA Roster. Lenders will not be able to assign cases to appraisers that are not registered on the FHA Roster.

To be a registered appraiser, where do appraisers go to complete the new testing, and will they then be issued CHUMS Identification Numbers as in the past?

Appraisers will not receive CHUMS Identification Numbers, and HUD will not issue letters to individual appraisers notifying them that they have been placed on the Lender Selection Register or that CHUMS has updated their license information (Mortgagee Letter 99-28).

How do underwriters know if an appraiser is eligible to perform FHA appraisals?

HUD will continue to maintain the FHA Appraiser Roster and will approve only those appraisers who have met the eligibility requirements for placement on the FHA Appraiser Roster. Lenders can ascertain an appraiser's FHA Roster status through the FHA Connection and ECHO.

"For Your Protection: Get a Home Inspection":

If the "For Your Protection" form is required to be signed before or on the date the borrower signs a contract, why are lenders required to provide this disclosure?

The lender is ultimately responsible to ensure compliance with this requirement on cases to be submitted for HUD mortgage insurance. 1 Frequently Asked Appraisal Questions for Lenders

Which Disclosure does the "For Your Protection" form replace?

Please refer to Mortgagee Letter 99-18.

Since the "For Your Protection" form is to be signed at or before the contract date, what is the required date of notification when an offer to purchase was originally subject to conventional financing and then the requested financing type changes from Conventional to FHA?

Your responsibility is no different than it has been in the past. The new form is part of the FHA financing package and must be signed on or before the contract date. The sales contract must be re-executed if necessary (per Mortgagee Letter 99-18).

Does the purchase contract have to be "re-executed" when the "For Your Protection" form disclosure is not executed prior to or at the signing of the contract? Or can the buyers and sellers sign an Amendment to the contract acknowledging that it was not provided to them before signing the contract, but they have chosen to continue the transaction anyway?

Amendments are not acceptable, but a properly completed modified contract will be acceptable. This includes the same contract dated again and initialed.

We, the lender, are not part of the Purchase agreement, so how do we enforce the "For Your Protection" form being executed on time?

If the Real estate professional does not complete this, the lender must have the borrowers sign the form upon application and re-execute the sales contract. It becomes part of the FHA case binder.

Why is there a space on the "For Your Protection" form for the seller's name and property address, when many buyers will be signing this form at a pre-approval application and the form clearly indicates with the last statement that the form is to be signed prior to signing a contract on a house?

Although the pre-approval process is an excellent way for a buyer/borrower to know how much "house" they can afford, it is not part of the typical purchasing process. This new required process assists the buyer in making an informed decision.

Will you accept a facsimile signature on the "For Your Protection" form?

Yes, but obtain the original for your file, when possible.

Can the lender accept a certified copy of the "For Your Protection: Get a Home Inspection" form (in cases where Real estate professionals have already made the disclosure)?

Yes, but is does not need to be a certified copy.

What is the order in which the ne