Search Function on Government SAM website Causes Problems for Lenders
A relatively new government website known as SAM that FHA lenders must check before making a loan has been slowing the origination process since Thanksgiving, particularly for lenders doing multiple searches.
The Government Services Administration is “aware of, and working to resolve, the issues with the search function,” the agency said Tuesday.
The Federal Housing Administration requires lenders to check the government’s "excluded parties list" before approving a loan to make sure the borrower, the real estate agent or loan officer has not been banned from doing business with the federal government.
GSA placed the EPL System on the new SAM website this summer. (Glitches occurred that took IBM several weeks to fix.)
Lenders could conduct single and multiple searches on the old EPLS. They are supposed to have both options on SAM. “The technical team is looking at revising how we can assist those interested in searching for exclusion records, especially those conducting high volume searching,” a GSA spokesperson said.
“At this time there are no plans to reactivate [old] EPLS,” she added.