Frequently Asked Questions - Insurance Application

Q1:	When I complete and submit the "Insurance Application" page, I receive the error "ACCESS DENIED; USER ID NOT AUTHORIZED FOR INSURANCE APPLICATION". How do I become authorized?

A1:	If you get this error, your FHA Connection Application Coordinator has not set the Insurance authorization on your FHA Connection user ID to "Add/Update". Please contact your FHA Connection Application Coordinator and request that they set the Insurance authorization to "Add/Update" on your FHA Connection user ID. If you do not know who that person is, please refer to the question "I do not know who my FHA Connection Application Coordinator is. How can I find out who that is and how to contact them?" in the General Questions section of the Frequently Asked Questions.

A1:

If you get this error, your FHA Connection Application Coordinator has not set the Insurance authorization on your FHA Connection user ID to "Add/Update". Please contact your FHA Connection Application Coordinator and request that they set the Insurance authorization to "Add/Update" on your FHA Connection user ID. If you do not know who that person is, please refer to the question "I do not know who my FHA Connection Application Coordinator is. How can I find out who that is and how to contact them?" in the General Questions section of the Frequently Asked Questions.

Q2:	When I submit the "Insurance Application" page, I receive the error "UNDERWRITER MUST BE EMPLOYED BY LENDER OR SPONSOR". How to I successfully submit the "Insurance Application" page?

A2:	If your company recently hired the underwriter, then the likely cause of the error is that their underwriter ID has not been updated in the "Underwriter Registry" page to indicate that your company is their current employer. Please make the update to the underwriter ID through the "Underwriter Registry" page reached from the "FHA Approval Lists" page. Another possible cause is that the wrong date was entered for the Hired field when the underwriter ID was updated in the "Underwriter Registry" page. If that date is after the date entered for the Underwriter Approval Date field, then this error will occur. If you believe this may be the case, please send an e-mail message to SFADMIN@hud.gov and ask to check the hired date listed for the underwriter. In the message be sure to include the underwriter's name, underwriter ID, and their hired date.

A2:

If your company recently hired the underwriter, then the likely cause of the error is that their underwriter ID has not been updated in the "Underwriter Registry" page to indicate that your company is their current employer. Please make the update to the underwriter ID through the "Underwriter Registry" page reached from the "FHA Approval Lists" page.

Another possible cause is that the wrong date was entered for the Hired field when the underwriter ID was updated in the "Underwriter Registry" page. If that date is after the date entered for the Underwriter Approval Date field, then this error will occur. If you believe this may be the case, please send an e-mail message to SFADMIN@hud.gov and ask to check the hired date listed for the underwriter. In the message be sure to include the underwriter's name, underwriter ID, and their hired date.

Q3:	I receive an error saying, "MORTGAGE AMOUNT CANNOT EXCEED XXX,XXX FOR VALUE OF XXX,XXX" when I submit the "Insurance Application" page. The amount listed for the value is less then the amount listed for the Appraised Value. How is the system determining the value?

A3:	Stated in Mortgagee Letter 98-29, "the new formulas permit the maximum mortgage amount to be based on a fixed percentage of the property's sales price (or appraised value, if less)". Therefore, the value is the lesser of the amounts listed for the Sales Price and the Appraised Value.

Q4:	I receive an error saying, "MORTGAGE AMOUNT EXCEEDS STATUTORY LIMIT XXXXXX" when I submit the "Insurance Application" page. How did the system determine the limit?

A4:	Each county has a maximum mortgage amount. You can determine what the maximum mortgage amount is by going to the "FHA Mortgage Limits" page on HUD's web site and doing a query on the county name and state. If the maximum mortgage amount listed is not the same as the amount listed on the error, please send an e-mail message to SFADMIN@hud.gov with the case number and county name and they will be able to look into this further for you.

A4:

Each county has a maximum mortgage amount. You can determine what the maximum mortgage amount is by going to the "FHA Mortgage Limits" page on HUD's web site and doing a query on the county name and state. If the maximum mortgage amount listed is not the same as the amount listed on the error, please send an e-mail message to SFADMIN@hud.gov with the case number and county name and they will be able to look into this further for you.

Q5:	I receive an error saying, "UFMIP RECEIVED OF 0.00 IS LESS THAN UFMIP DUE OF XXXX.XX ". How can I resolve this error to have the "Insurance Application" page be submitted successfully?

A5:	The error occurs when the UFMIP remittance has not been made. The remittances are not made through the FHA Connection, but through other software/service such as the HUD-MPC software. After the UFMIP is remitted, you will be able to successfully submit the "Insurance Application" page the following business day. If the case in question is a streamline refinance case and the unearned MIP exceeds the UFMIP due, a remittance still must be made in the amount of $0.00. This will result in the unearned MIP to be taken from the previous case and applied to the streamline refinance case.

A5:

The error occurs when the UFMIP remittance has not been made. The remittances are not made through the FHA Connection, but through other software/service such as the HUD-MPC software. After the UFMIP is remitted, you will be able to successfully submit the "Insurance Application" page the following business day.

If the case in question is a streamline refinance case and the unearned MIP exceeds the UFMIP due, a remittance still must be made in the amount of $0.00. This will result in the unearned MIP to be taken from the previous case and applied to the streamline refinance case.

Q6:	I receive an error saying, "UFMIP RECEIVED OF XXXX.XX IS LESS THAN UFMIP DUE OF XXXX.XX". The amount listed for the amount received is what we calculated as being due. Why is the system stating that not enough was remitted for the UFMIP?

A6:	The majority of the times this error occurs is when the case UFMIP is financed and the MIP Financed field is accidentally set to "No". Please verify that the MIP Financed field is set to "Yes" if the UFMIP is financed. If the UFMIP is not financed or the MIP Financed field is set to the proper setting, then please contact the Home Ownership Center in your region or send an e-mail message to SFADMIN@hud.gov and ask to assist you on determining why the UFMIP is not sufficient. Please have the case number handy or provide it in the e-mail message so they may assist you.

A6:

The majority of the times this error occurs is when the case UFMIP is financed and the MIP Financed field is accidentally set to "No". Please verify that the MIP Financed field is set to "Yes" if the UFMIP is financed.

If the UFMIP is not financed or the MIP Financed field is set to the proper setting, then please contact the Home Ownership Center in your region or send an e-mail message to SFADMIN@hud.gov and ask to assist you on determining why the UFMIP is not sufficient. Please have the case number handy or provide it in the e-mail message so they may assist you.