The Federal Housing Administration (FHA) announced on January 11, 2017 that it will be implementing its new Loan Review System (LRS). LRS will provide an electronic platform for FHA’s Title II Single Family quality control functions. FHA is in the final stages of technology development, and will announce the LRS implementation date soon. FHA has made additional resources and information available to help mortgagees prepare for the transition to LRS. There is a new LRS Information Page on HUD.gov that explains LRS functions and features. FHA also instructs all mortgagees to thoroughly review the following:
- FHA’s January 11, 2017 Mortgagee Letter 2017-03 which provides details on the process and policy changes that will be effective when LRS is implemented.
- FHA’s June 18, 2015 Defect Taxonomy Overview which explains in detail how FHA will categorize and communicate loan-level quality control findings in LRS.
There are also the following LRS information webinars for mortgagees:
- Webinar 1 – Loan Review System (LRS): Implementation and Process Changes. Mortgagees that were not able to attend the first LRS live webinar on January 26th are advised to view the recorded webinar available on the Single Family Housing Archived Webinars page. This webinar provides an overview of LRS functionality and related process changes.
- Webinar 2 – Loan Review System (LRS): Functions and Uses, March 15, 2017, 2:00 PM – 3:30 PM (Eastern). This webinar will provide user-level detail regarding LRS functionality. Mortgagees must register to attend this free, online webinar. Attendees will receive the link to access the webinar along with the other details for their registration confirmation. This is the second in a series of planned LRS related webinars. Dates and times for additional LRS webinars will be announced in the future.