Attention all mortgagees approved to do business with the Federal Housing Administration: mandatory registration for the FHA’s new Electronic Appraisal Delivery portal begins on Monday, Aug. 17.

The FHA notified all of its approved mortgagees, as well as appraisers and other stakeholders of the opening of the mandatory registration process in an email this week.

According to the FHA, mortgagees are required to register for the EAD, the new web-based portal for electronic appraisal report and data submissions, in one of seven “onboarding” phases.

The first of those phases begins on Monday.

All FHA-approved mortgagees are required to be migrated over to the EAD by the FHA-mandated EAD use date of June 27, 2016.

According to the FHA, the EAD will “promote quality up-front appraisal data,” by requiring mortgagees to electronically transmit appraisal data and reports to FHA prior to loan endorsement.

“This, in turn, reduces post-endorsement appraisal data corrections, and makes it easier for mortgagees and others to do business with FHA,” the FHA said in its email to mortgagees. “The benefits of this electronic technology will be available from FHA to mortgagees for free.”

The FHA said that mortgagees must register for and participate in an onboarding phase, adding that the onboarding phase will allow mortgagees to become familiar with the portal and to work through data submissions in a live environment.

“FHA strongly encourages mortgagees to register for the earliest possible onboarding phase, and to do so as soon as possible on or after August 17, 2015,” the FHA said in its note, bolding this sentence for emphasis.

“By migrating to portal use in an early onboarding phase, a mortgagee will have more time to work within the EAD portal to ensure that their systems, data flow, and operational processes map to portal requirements before the mandatory use date,” the FHA added.

According to the FHA’s website, the EAD “leverage industry data standards and appraisal industry practices,” as well as:

  • Offering process efficiencies inherent in an electronic data submission
  • Implementing industry standard data formats developed and maintained by the Mortgage Industry Standards Maintenance Organization
  • Reducing error rates before endorsement by identifying many appraisal data and compliance issues up front
  • Eliminating most paper-based FHA reviews of appraisals, thus improving turn-times
  • Offering role-based access and functionality, with specific user and administrator roles that control use
  • Reducing redundancies by linking data submitted through the portal to data in the FHA Connection system, including auto-population of the FHAC Appraisal Logging screen

While the registration for the onboarding process begins Aug. 17, the actual start date for the first onboarding phase is Oct. 15. The first phase ends on Dec. 15.

Click the image below for the start and end dates for the remaining onboarding phases.

FHA EAD onboarding dates

(Source: FHA)

“While each phase is approximately 60 calendar days in duration, FHA expects that many mortgagees who are not building a direct interface to the portal can be on boarded within five to seven days,” the FHA notes on its website.