The Federal Housing Administration (FHA) announced that it has temporarily shut down its Loan Review System (LRS) after users reported experiencing various document errors over the past several weeks.
Implemented in 2017, the LRS is one of the FHA’s newest technological innovations, an electronic platform that lenders use to interact with the agency for quality control on most Title II single-family mortgages — the bulk of the FHA’s volume. Processes that lenders access LRS to perform include post-endorsement loan reviews, lender monitoring reviews and self-reporting of fraud.
According to the U.S. Department of Housing and Urban Development website, the system automates several manual processes and communications, streamlines submission of required documents, enhances loan quality reporting and analytics, and organizes requests for lender responses.
Efforts to resolve the errors experienced by users of late have had “mixed results,” according to a communication issued by the FHA this week. This led to the agency shutting down LRS on Monday, April 11, while “system teams continue to troubleshoot the issue.” Shutting down the system, the FHA said, “will minimize the need for lenders to resubmit response documents once the errors are resolved.”
The FHA projects that LRS access will return no later than April 25. The agency will reset response due dates and “make other appropriate adjustments” to make sure that lenders are not adversely impacted by the shutdown. Lenders with questions about the shutdown, as well as those with specific requests once access to LRS is restored, can contact the FHA Resource Center through email at email@example.com and via phone at 1-800-CALLFHA.