FHA Implements Portal to Obtain Partial Claim Payoffs, Subordination Checklists

The FHA recently announced a new portal for HUD’s Single Family Mortgage Asset Recovery Technology (SMART) system. The self-service portal, named the SMART Integrated Portal (SIP), allows borrowers, servicers, and third parties to request (i) real-time payoff amounts for FHA partial claims, which permit payment of borrower past due mortgage payments, as a loss mitigation alternative, in consideration of a junior secured zero-interest promissory note, or (ii) partial claim subordination checklists.

The following parties can create accounts in SIP: (1) individual borrowers seeking information on their own loans; (2) servicers seeking information on loans in their FHA portfolio; and (3) third parties (e.g., title companies, originating lenders, and attorneys acting on behalf of borrowers and title companies). Instructions for creating an SIP account are provided online.