- Starting April 18, the FHA system will require originators to certify that they have a loan application for the borrower and the property.
- The originator must also provide the borrower's name and social security number for all new construction projects including proposed construction and existing construction less than one year old.
- Starting April 18, the FHA system will automatically cancel any uninsured case number that has not had activity in the last six months, unless an appraisal update has been entered, and/or the upfront MIP has been received.
- case number assignment
- completion of appraisal information
- issuance of firm insurance commitment by FHA
- receipt or update of insurance application
- Notice of Return and Resubmissions
The automatic cancellation is for case numbers issued prior to April 18, 2011, before the MIP rate hike. So for example, if you have a case number issued December 15 with the old premium rates, and you have a new borrower for the property, you need to get your insurance application in prior to June 15 to avoid case number cancellation. A new case number will mean higher MIP premiums, which can cause a real problem if your Good Faith Estimate was prepared using the old numbers. A new case number will also have to underwritten to current FHA standards. Any case number issued prior to April 18, 2011, that was not insured prior to April 18, 2011, has been automatically cancelled.