The Federal Housing Administration, which insures a large number of loans in the U.S. market, will be instituting a new digital file format for distressed mortgages that will add several reporting elements related to taxes and insurance.
The new electronic-data interchange file for default reporting also addresses
The data elements added are:
- Escrow: balance and date of the last analysis
- Monthly contractual payments: T&I and principal and interest
- Annual amounts: tax amounts, homeowners hazard and flood insurance premiums
- Annualized premium amounts for force placed insurance: flood and hazard
Another update to the EDI file will require reporting dollar and cents figures without leading zeros or decimals. The 10 character format reserves the last two digits to represent cents and accommodates a negative escrow balance using a minus sign.
Servicers should not use the new FHA format for default reporting until Feb. 2 in line with the January reporting cycle, but they do need to test the authentication with technology and service providers enough in advance that they will be ready to use it at that time, according to FHA.
FHA on Tuesday also reaffirmed an Oct. 27 deadline for all mortgagees to implement new multifactor authentication. Initially the administration wanted it in place by the end of July. It extended the deadline on July 10.
The authentication applies to the legacy FHA Connection system that mortgage companies must have access to before they can use the newer Catalyst platform. The FHA plans to cut off access to FHA Connect for those who do not have the new authentication in place on time.
The new authentication aims to protect against online infiltration in electronic communications that can lead to the installation of malware or stolen data.
"This new
