FHA Single Family Housing Policy Handbook 4000.1, II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT > A. Title II Insured Housing Programs Forward Mortgages > 7. Post-closing and Endorsement — d. Procedures for Endorsement

d. Procedures for Endorsement (04/10/2025) To initiate the insurance endorsement process, the Mortgagee must complete the Insurance Application function in FHAC and compile the uniform case binder, with all of the necessary documents. Instructions for specific requirements for data format and delivery to FHAC are found in the FHA Connection Guide. The Mortgage must be current to be eligible for endorsement. Either the sponsoring Mortgagee, principal or authorized agent must: • complete the Mortgage Insurance Premium (MIP) Transmittal via FHAC or by batch; • pay the Upfront MIP (UFMIP) to FHA in a lump sum within 10 Days after mortgage closing or the Disbursement Date, whichever is later; • send the MIP to FHA, and receive payment status through FHAC or email communications; • submit evidence of assignment of the case for endorsement in the name of the originating Mortgagee; and • transfer the case number to another Mortgagee prior to closing, complete the Lender Transfer screen in FHAC, and complete the assignment of the Mortgage after endorsement to a new holding or servicing Mortgagee via FHAC.

i. Late Upfront Mortgage Insurance Premium Payments (A) 10–30 Days Late A one-time late charge of 4 percent is assessed on an UFMIP payment received more than 10 Days after the mortgage closing or Disbursement Date, whichever is later. The Mortgagee must pay the late fee before FHA will endorse the Mortgage for insurance. (B) More than 30 Days Late If the UFMIP is paid more than 30 Days after mortgage closing or Disbursement Date, whichever is later, the Mortgagee will be assessed the late fee plus interest. The interest rate is the U.S. Department of the Treasury’s Current Value of Funds Rate in effect when the UFMIP payment is received. The Mortgagee must pay both charges before FHA will endorse the Mortgage for insurance.

ii. Assembly of Case Binder for Electronic Submission The Mortgagee must prepare and submit a uniform case binder through e-case submission in accordance with FHAC or through FHA Catalyst: Case Binder Module in accordance with the FHA Catalyst: Case Binder Module User Guide. The Mortgagee must ensure that all case binders are complete, meet FHA specifications, contain all required documents, and are submitted electronically according to the document order designated below. All appraisals must be submitted through FHA’s EAD portal prior to endorsement. Complete instructions and data delivery format requirements for each appraisal form are found in the Appraisal Report and Data Delivery Guide. Property Related Documents Conditional Commitment Direct Endorsement Statement of Appraised Value HUD-92800.5B Compliance Inspection Report HUD-92051 Mortgagee Assurance of Completion HUD-92300 Appraisal Update and/or Completion Report Fannie Mae Form 1004D/Freddie Mac Form 442 Life of Loan Flood Certification Evidence of Flood Insurance (required if Property is in flood zone A or V.) Evidence of Hazard Insurance Wood Destroying Insect Inspection Report or state mandated report NPMA-33 Waivers – Property specific issued by FHA Borrower’s Contract with Respect to Hotel and Transient Use of Property HUD-92561 New Construction Exhibits (for all Properties built or proposed in the last 12 months) Builder’s Certification of Plans, Specifications, and Site HUD-92541 Warranty of Completion of Construction HUD-92544 Certificate of Occupancy (CO) and Building Permit Final Inspection 3 FHA Inspections Local Health Authority Approval for Individual Water and Sewer Systems Subterranean Termite Protection Builder’s Guarantee HUD-NPMA-99-A New Construction Subterranean Termite Service Record HUD-NPMA-99-B LOMR, LOMA, Elevation Certificate Manufactured Housing Engineer’s Certification for Manufactured Housing Foundation LOMR, LOMA, Elevation Certificate (if not included with New Construction Docs) Condominiums Loan Level/Single-Unit Approval Questionnaire HUD-9991 Other Required Condominium Documents Specialized Eligibility Documents Hawaiian Home Lands Presidentially-Declared Disaster Area Energy Efficient Documents & Home Energy Rating System (HERS) Report 203(k) Documents Borrower’s Acknowledgement HUD-92700-A Borrower Identity of Interest Certification Rehabilitation Self-Help Agreement Homeowner/Contractor Agreement Contractor & Borrower Cost Estimates Rehabilitation Loan Agreement Rehabilitation Loan Rider Consultant Work Write-Up Consultant Identity of Interest Certification Draw Request HUD-9746-A Purchase Transactions Sales Contract Amendatory Clause Real Estate Certification Other contract addenda or short sale approval Chain of Title and Title Evidence demonstrating Good and Marketable Title Underwriting Documentation Late Endorsement Letter FHA Connection Screen Prints FHA Loan Underwriting and Transmittal Summary HUD-92900-LT Underwriter Memos, Clarifications, or Attachments Automated Underwriting System (AUS) Feedback Certificate Mortgage Note for new first lien Security Instrument for new first lien Mortgage Riders & Allonges Secondary Lien Exhibits All Closing Disclosures or similar legal documents with addenda Loan Estimate FHA/RESPA/TILA Required Disclosures including Affiliated Business Arrangement Disclosure Statement if applicable Buydown Agreement Power of Attorney Uniform Residential Loan Application (URLA) – Initial and Final Fannie Mae Form 1003/Freddie Mac Form 65 HUD Addendum to Uniform Residential Loan Application – Initial and Final HUD-92900-A Borrower Authorization for Verification Borrower Authorization for Use of Information Protected under Privacy Act Refinance Documentation Refinance Authorization Screen Printout Payoff Statement(s) for all liens to be satisfied with Mortgage proceeds Borrower Certification for Refinance of Borrowers in Negative Equity Position HUD-92918 Chain of Title and Title Evidence demonstrating Good and Marketable Title Borrower Identification Documentation Evidence of Borrower’s valid government-issued photo identification or written statement from Mortgagee verifying review of valid government- issued photo identification Evidence of Social Security Number (SSN) or Taxpayer Identification Number (TIN) Legal residency status documents for non-U.S. citizens Credit and Capacity Documentation Credit report(s) Verification of Mortgage or rent Credit related documentation and explanations Housing Counseling Certificate(s) Source of Funds Verification Verification of non-gift source of funds Verification of gift source of funds Income and Employment Documentation All required documentation grouped by Borrower

iii. Case Binder Submission – Direct Endorsement Non-lender Insurance The case binder must be submitted to FHA no later than 60 Days after the Disbursement Date. (A) Late Submission If the case binder is submitted more than 60 Days after the Disbursement Date, the Mortgagee must submit a late endorsement request, certifying that: • no Mortgage Payment is currently unpaid; • all escrow accounts for taxes, Hazard Insurance and MIPs are current and intact, except for Disbursements that may have been made to cover payments for which the accounts were specifically established; and • neither the Mortgagee nor its agents provided the funds to bring and/or keep the Mortgage current or to bring about the appearance of an acceptable payment history. Each late endorsement request must: • list the FHA case number; • list the Borrower’s name; • be dated and signed by the Mortgagee’s representative; and • be printed on company letterhead with the Mortgagee’s address and telephone number. (B) Assignee Mortgagee [Text was deleted in this section.] The assignee Mortgagee of a Mortgage may submit the Mortgage for endorsement in its name or the name of the originating Mortgagee. The Purchasing Mortgagee may pay any required MIP, late charges, and interest. (C) After Receipt of a Notice of Return Notice of Return (NOR) refers to a notification to the Mortgagee specifying the reason a Mortgage is not currently eligible for endorsement. If FHA issues a NOR, the Mortgagee may request reconsideration for insurance endorsement. All requests for reconsideration must be received by FHA within the 60-Day endorsement submission period or within 30 Days of the issuance of the NOR, whichever is longer. If the request for reconsideration is submitted after this time period, the Mortgagee must follow the guidelines for late submission.

iv. Ineligible for Endorsement – Non-lender Insurance (A) Notice of Return If the Mortgage is ineligible for insurance endorsement, FHAC issues an electronic NOR, which states the reasons for non-endorsement and any corrective actions that the Mortgagee must take. If the Mortgage is permanently rejected for insurance endorsement, the Mortgagee must notify the Borrower that they do not have an FHA-insured Mortgage and of the circumstances that made the Mortgage ineligible for FHA insurance. (B) Additional Requirements for Permanently Rejected Mortgages The Mortgagee must obtain a refund of both the UFMIP and any periodic MIP paid by or on behalf of the Borrower, and apply the refund to the principal balance of the Mortgage. (C) Excessive Mortgage Amounts An excessive mortgage amount occurs when the Mortgagee closes a Mortgage in an amount higher than what is permitted by FHA requirements. The Mortgage is not eligible for insurance until the amount is reduced to within permissible limits. The Mortgagee may choose to either pay down the principal balance, or re-close the Mortgage to an insurable amount. The Mortgagee must provide a copy of the payment ledger showing that the principal balance has been paid down to an insurable amount.

v. Endorsement Processing – Lender Insurance Once the Mortgagee has completed the entry of all required data, completed the pre- endorsement review, and satisfied itself that the Mortgage meets HUD requirements, it will click “yes” in the Insurance Decision field, enter the FHA Connection ID of the individual insuring the Mortgage, enter the insurance date on the Insurance Application screen and click “send.” The Mortgagee must endorse the Mortgage no later than 60 Days after the Disbursement Date. Late Submission If the Mortgage is endorsed more than 60 Days after the Disbursement Date, the Mortgagee must complete a late endorsement certification stating: • no Mortgage Payment is currently unpaid; • all escrow accounts for taxes, Hazard Insurance and MIPs are current and intact, except for Disbursements that may have been made to cover payments for which the accounts were specifically established; and • neither the Mortgagee nor its agents provided the funds to bring and/or keep the Mortgage current or to bring about the appearance of an acceptable payment history. Each late endorsement certification must: • list the FHA case number; • list the Borrower’s name; • be dated and signed by the Mortgagee’s representative; and • be printed on company letterhead with the Mortgagee’s address and telephone number. The Mortgagee must retain the certification in the case binder.

vi. Case Warnings – Lender Insurance Case warnings are issued by FHAC based on system edits. They identify issues that must be addressed before the Mortgage can be insured. There are two kinds of case warnings: non-severe and severe. (A) Severe Case Warnings Severe case warnings are case warnings that make the Mortgage ineligible for Lender Insurance (LI), which include: • a Borrower failed or is pending SSN validation; • a Borrower has a record in CAIVRS; • the pre-endorsement delinquency status is delinquent; or • a deficiency exists causing risks to HUD. FHA will add text to the case warning message screen identifying the reasons requiring submission of the case binder to FHA for a pre-endorsement review. Once the severe case warning is corrected, documentation in support of clearing the case warning and the case binder must be submitted to FHA for pre-endorsement review and endorsement processing. (B) Non-severe Case Warnings Non-severe case warnings are warnings to provide guidance to the Mortgagee that conditions have been detected and must be researched before the Mortgage can be endorsed. If, after researching the matter, the Mortgagee determines that HUD requirements have not been violated, the Mortgagee may resubmit the Mortgage for insurance. By resubmitting the information, the Mortgagee is representing that the warning has been reviewed and the Mortgage is eligible for insurance endorsement. FHAC will then allow the Mortgage to be insured by the Mortgagee.

vii. Mortgagee with Conditional Direct Endorsement Approval (Test Case) Mortgagees who receive a Direct Endorsement Program Test Case Phase approval letter from FHA must follow the Test Case Phase Case Binder Submission process.