FHA Case Assignments and Single Unit Approvals for Condos

New requirements for ordering FHA Case Assignments for Single Unit Approvals for Condos effective 10/15/19:

 1. Follow the steps outlined in Mortgagee Letter 2019-13 to order case number for a property using a SUA, which are summarized here:

1. Case numbers for loans using the Single Unit Approval (SUA) option must be ordered on or after 10/15/19
2. Follow standard process in FHA Connection for obtaining a case number for a condominium loan

1. Select the associated Condo ID if one exists in the "PUD/Condo ID” field
2. Select “Single Unit Approval” from drop-down menu within "Site Condo” field

• SUA request will default into "Holds Tracking” requiring data submission to Resource Center

1. Email required information from FHA Single Unit Approval Condo Questionnaire  (HUD-9991)

1. Send Email to Resource Center at answers@HUD.gov

1. Subject line of email must read:  “SUA Holds Tracking”
1. Submit a separate email for each SUA application request
2. Provide the following information from the FHA Single Unit Approval Condo Questionnaire  (HUD-9991)in the email
1. (1.a) Mortgagee information
2. (2.a) Condominium project information (must be completed by association or management company)
3. (2.b.) Condominium Association information
4. (3.1.a) Total Number of Units in the Condominium Project only

1. The Homeownership Center will process the information to determine if a case number can be issued, and if approved will provide a response (and advise when the Holds Tracking is removed)

3. Anticipated response is 3 business days (but is subject to change)

 From: Lara Rausch <lrausch@PRMG.NET>
Sent: Friday, October 11, 2019 11:59 PM
Subject: FHA Single Unit Approval Process / HUD Approved Condos - Effective 10/15/19

It is important to note that for FHA loans, effective with all cases assigned as of Tuesday, October 15, 201,9 any properties in condo projects (regardless of approval method) must have the FHA Condo Questionnaire (HUD Form 9991) completed.  Projects that are currently on HUD’s approved list require sections 1-3 to be completed, and the underwriter must ensure the project meets the “Requirements for Units in Approved Condominium Projects” as outlined in the 4000.1.II.A.8.p.  Loans using the Single Unit Approval process must have sections 1-4 completed and be submitted for project review and approval.

PRMG will be offering FHA Single Unit Approvals (SUA) with cases assigned as of Tuesday, October 15, 2019.  Please note we are currently requiring the loan to be conditionally approved in order to submit the project for SUA review.  The requirement for the loan to be conditionally approved may change in the future, but at this time the loan must be in that status to submitted for review. Anticipated turn-time on SUA project reviews is currently 5-7 business days, but as this is a new process it is subject to change.

Below is the process that will be in place for these loans, including what is required to be able to order a case number.  Note, you must have the FHA Condo Questionnaire completed in order to have the information needed to order a case number for SUA loans.  Currently only the FHA Standard and High Balance product, the 203K Standard, 203K Limited and the WSHFC Housing Authority House Key FHA products will allow FHA single unit approvals.  We are in the process of checking with the HFAs and their master servicers, and once they verify the Single Unit Approval process will be allowed, we will not overlay on it and allow.

We have developed several documents to help with this process.  The documents are attached and posted in the Resource Center.  We encourage you to use the version on the Resource Center, as that will always contain the most updated version. 

FHA Single Unit Approval Process

FHA Single Unit Approval Condo Checklist

FHA Single Unit Approval Condo Submission Form

FHA Single Unit Approval Condo Questionnaire (HUD-9991)

Please note the FHA Single Unit Approval Condo Checklist is a very detailed list of the requirements.  We do not expect you to do a complete review of those requirements, but you may want to perform a cursory check on things like LTV, occupancy ratios, etc. to ensure there is nothing that will immediately disqualify the project for single unit approval.

Here is a the process that will be in place for Single Unit Approvals as of Tuesday, October 15, 2019:

1. Obtain FHA Single Unit Approval Condo Questionnaire (HUD-9991) (may want to obtain any other necessary documentation as outlined on the FHA Single Unit Approval Submission Form at this time as well)
2. Review PRMG’s FHA Single Unit Approval Checklist to ensure there are no items that will immediately disqualify the loan/project from approval
3. Follow the steps outlined in Mortgagee Letter 2019-13 to order case number for a property using a SUA, which are summarized here:
1. Case numbers for loans using the Single Unit Approval (SUA) option must be ordered on or after 10/15/19
2. Follow standard process in FHA Connection for obtaining a case number for a condominium loan

1. Select the associated Condo ID if one exists in the "PUD/Condo ID” field
2. Select “Single Unit Approval” from drop-down menu within "Site Condo” field

• SUA request will default into "Holds Tracking” requiring data submission to Resource Center

1. Email required information from FHA Single Unit Approval Condo Questionnaire  (HUD-9991)

1. Send Email to Resource Center at answers@HUD.gov

1. Subject line of email must read:  “SUA Holds Tracking”
1. Submit a separate email for each SUA application request
2. Provide the following information from the FHA Single Unit Approval Condo Questionnaire  (HUD-9991)in the email
1. (1.a) Mortgagee information
2. (2.a) Condominium project information (must be completed by association or management company)
3. (2.b.) Condominium Association information
4. (3.1.a) Total Number of Units in the Condominium Project only

1. The Homeownership Center will process the information to determine if a case number can be issued, and if approved will provide a response (and advise when the Holds Tracking is removed)

1. Anticipated response is 3 business days (but is subject to change)
1. Submit loan for underwriting
2. Upon conditional approval, complete the FHA Single Unit Approval Submission Form and submit required documentation (as outlined on submission form) to condreviews@prmg.net for condo review/approval
1. Anticipated turn time for FHA Condo Approvals is currently 5-7 business days (but is subject to change)
3. Upon single unit approval, all documentation used in the condo review must be uploaded and retained in the loan (case binder)

As a reminder, HUD has issued a webinar for training on these new HUD condo requirements, which can be access here.   We are pleased to be offering this option for FHA loans, and will continue to refine the process as we gain experience with it.

Thanks,

Lara

Lara Rausch

V.P. of Products and Training

* Email:   lrausch@PRMG.NET

( Direct:  951-547-6304

Branch ID 000

10/18/19: There is a charge for SUA approval, but at this time, Corporate is absorbing the charge. Per Lara Rausch email. (subject to change)