Procedure: Using FHA Connection Date Issued: 04/16/2014 Date Effective: 04/16/2014 Date Revised: 07/22/2015. Executive Vice President, Operations

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1 REVISED 07/22/2015; PAGE 1 OF 13 PNP SPECIFICATIONS PNP Name/ History Procedure: Using FHA Connection Date Issued: 04/16/2014 Date Effective: 04/16/2014 Date Revised: 07/22/2015 Production Channels Retail Correspondent Wholesale Accountable Personnel/ Department Processing Issuing Personnel/ Department Subject Matter Expert (SME) Purpose Executive Vice President, Operations Director of Processing The purpose of this procedure is to facilitate navigation in FHA Connection. RELATED DOCUMENTATION Guide Branch Processing Manual Matrix None Policy None Procedure None

2 REVISED 07/22/2015; PAGE 2 OF 13 RELATED DEFINITIONS FHA Connection FHA Connection provides FHA-approved lenders and business partners with direct, secure, online access to computer systems of the U.S. Department of Housing and Urban Development (HUD). Table of Contents Introduction to FHA Connection... 3 Ordering a New FHA Case Number... 3 Receiving and Recording the New FHA Case Number... 9 Running CAIVRS (FHA & VA s) Receiving and Recording the CAIVRS Authorization #... 13

3 REVISED 07/22/2015; PAGE 3 OF 13 Introduction to FHA Connection 1. All initial signed disclosures must be returned by the borrower and in the file (efolder) before a new FHA case number can be ordered. This requirement is discussed in the FHA Connection Login Agreement that is included in new hire paperwork. Login credentials are required for using FHA Connection and can be obtained from the AFN Help Desk (helpdesk@afncorp.com). You can login to FHA Connection from your web browser via this URL: Normal hours of operation for Case Processing are Monday Friday 8:00 AM 10:00 PM Eastern (5:00 AM 7:00 PM Pacific). Ordering a New FHA Case Number 2. Login to FHA Connection. 3. Select Single Family FHA from the left navigation menu.

4 REVISED 07/22/2015; PAGE 4 OF 13 Ordering a New FHA Case Number 4. Select Single Family Origination from the options that appear, and then select Case Processing. 5. Select Case Number Assignment from the options that appear, and then select Establish a New Case.

5 REVISED 07/22/2015; PAGE 5 OF 13 Ordering a New FHA Case Number 6. Validate the Borrower and Address to be used for Case Number Assignment; complete the required fields (as highlighted below) for all borrowers using their full legal name as indicated on their Social Security Card including any middle name. 7. Click the [Send] button to submit the request and the Case Number Assignment page will appear. 8. Complete the fields that are highlighted in the screen samples below, following the tips provided.

6 REVISED 07/22/2015; PAGE 6 OF 13 Ordering a New FHA Case Number 8. (Cont d) Field Is this a Sponsored Originator Case? Originator ID Case Type Construction Code Processing Type Financing Type Completion Tip Always answer NO If Branch has FHA approval and their own ID, use the Branch ID, otherwise use Regular DE Typically Existing Construction (unless the property is New Construction) N/A N/A ADP Code Fixed Rate (SFR or PUD) = 703, Condo = 734 Living Units Program ID Term ARM (SFR or PUD) = 729, Condo = 731 # of Units associated with the property Default Term expressed in months

7 REVISED 07/22/2015; PAGE 7 OF 13 Ordering a New FHA Case Number 8. (Cont d) Field Amortization Type Housing Program Property Type Special Program Buydown Principal Write-down Type of Case If Purchase: Was this case previously sold as a Real Estate Owned (previously sold by HUD) If Refinance: Specify type of refinance Completion Tip Match the loan (Fixed, Adjustable, etc.) FHA Standard Mortgage or Condominium SFR/PUD = Not a Condominium or Condo = Condominium Typically No Special Program Typically No, unless there is a Buydown feature on the loan Not a principal write-down Match the loan (Forward Purchase or Forward Refinance) Typically No (unless the loan was a HUD REO) Match the loan: If Purchase, select Not a refinance; if refi, select Prior FHA or Conventional as applicable

8 REVISED 07/22/2015; PAGE 8 OF 13 Ordering a New FHA Case Number 8. (Cont d) Field All Refinances: (a) Select streamline refinance type All Refinances: (b) Is this a Cash-out Refinance Prior FHA and prior REO cases: Enter case number of previous case PUD/Condo Indicator PUD/Condo ID Month/Year Completed Completion Tip Match the loan (Not Streamlined, or Streamlined With or Without Appraisal) Match the loan (select Yes or No as applicable) Streamline Only: Enter case number of previous loan Defaults to N/A; if PUD or Condo select the correct option Click the spyglass icon to search for and select the condo project; if not found, we cannot do the transaction if a condo (Streamlines are an exception) Approximate month/year built Prior FHA (Forward) Case: Enter the following for new case Enter the requested information for the new transaction: Projected Closing Date = Estimated Closing Date (MM/DD/YY), Contact Name =, Contact Phone = s Phone Number

9 REVISED 07/22/2015; PAGE 9 OF 13 Receiving and Recording the New FHA Case Number 9. Click the [Send] button to receive a new case number; enter the new case number in the FHA Case # field in Encompass (FHA Management form (screen) > Tracking) and Date of case assignment. Place a copy of the case assignment from FHA Connection in the Encompass efolder under Gen FHA/VA Case Number & CAIVRS. FHA Connection typically takes 24 hours to validate all entered borrower information. It may be necessary to log back in and reprint an updated case assignment showing no warnings (case should reflect message all borrowers passed SSN validation ) to upload to the efolder for underwriting to clear. 10. If prior FHA case exists, enter the previous case information (old FHA case #, MIP Refund amount, and Prior Endorsement Date) in the FHA Management form (screen) in Encompass (Tracking tab > Refi Authorization fields).

10 REVISED 07/22/2015; PAGE 10 OF 13 Running CAIVRS (FHA & VA s) 11. After logging in to FHA Connection, select Single Family FHA from the left navigation menu. 12. Select Single Family Origination from the options that appear, and then select Case Processing.

11 REVISED 07/22/2015; PAGE 11 OF 13 Running CAIVRS (FHA & VA s) 13. Select CAIVRS Authorization from the options that appear; the CAIVRS Authorization screen will appear.

12 REVISED 07/22/2015; PAGE 12 OF 13 Running CAIVRS (FHA & VA s) 14. Complete the CAIVRS Authorization fields using the tips provided below. Field SSN/TIN Number Lender ID Agency Completion Tip Enter the SSN of each borrower as it appears on their SSN card FHA loans: If Branch has FHA approval and their own ID, use the Branch ID, otherwise use VA loans: Enter FHA loans: HUD-FHA Single Family VA loans: Veterans Affairs

13 REVISED 07/22/2015; PAGE 13 OF 13 Receiving and Recording the CAIVRS Authorization # 15. Click the [Send] button; CAIVRS Authorization Results will appear, as shown below. 16. Enter the CAIVRS information on the FHA Management form (screen) in Encompass (whether FHA or VA loan). Place a copy of the CAIVRS information from FHA Connection in the Encompass efolder under Gen FHA/VA Case Number & CAIVRS.