The Federal Housing Administration (FHA) recently announced that as of August 26th, mortgagees can begin registering for one of the seven onboarding phases that will allow them to migrate to the administration’s new Electronic Appraisal Delivery (EAD) portal. These seven phases are currently scheduled for the 15th of each month between October 2015 and April 2016.
Mortgagees must first register for their chosen onboarding phase in FHA Connection (FHAC) before they can begin migrating to the new portal, and each phase is set to last 60 days. With that said, the FHA expects those not building a direct interface to the portal to be on-boarded within only five to seven days.
The FHA has strongly suggested that mortgagees register for the earliest possible onboarding phase, because it will provide them with more time to work within the EAD portal to help ensure that their systems, data flow, and operational processes map to the portal requirements before the mandatory use date (June 27, 2016). In addition, the FHA also suggested that mortgagees plan for an onboarding phase based off their FHA volume, technical development capability, and operational migration needs.
EAD portal onboarding will take place in a live system, and mortgagees will have the ability to use both the new EAD portal and the current appraisal data submission methods until June 27, 2016. It’s important to note, however, that any appraisal data transmitted to the FHA via the new EAD portal—which includes any data submitted during an onboarding phase—will become the appraisal of record.
The FHA would also like mortgagees to note that once they’ve registered for an onboarding phase, they will not be able to access the EAD portal until their phase has begun. They must also select and register their EAD Administrator(s) via the FHAC, who will then in turn receive EAD access credentials. Mortgagees with multiple FHA Lender ID’s will need to register an EAD Administrator for each Lender ID during the onboarding phase.
For more information on how to register, along with the complete list of available onboarding phases, check out the FHA’s Mortgage Onboarding Process webpage.
In addition, mortgagees should also thoroughly review all of the available EAD user documentation and pre-recorded training modules before the start of their onboarding process, which includes the following fact sheet and webinars:
- Onboarding to the EAD
- FHA Training for Lender Users: 100 – FHA Electronic Appraisal Delivery (EAD) Portal
- FHA Training for Lender Administrators: 101 – FHA Electronic Appraisal Delivery (EAD) Portal
EAD Portal Overview:
Announced by the FHA this past March, the new EAD portal is a free web-based technology system that enables mortgagees, or their designated third-party service providers, to electronically transmit appraisal data and reports to the FHA prior to loan endorsement. This process will become mandatory on June 27, 2016, in which lenders will be required to use this new portal to submit all their FHA origination appraisals.
The new EAD portal is designed to make appraisal submission more efficient and to promote higher quality appraisals by flagging potential errors upfront. In addition, because the EAD will eliminate most paper-based FHA appraisal reviews, turn-times are expected to decrease post portal implementation.
For more information, check out the following blog post.