How does a Lender establish and maintain a cash flow account?

FHA-approved lenders must use Cash Flow Account Setup in Lender Electronic Assessment Portal (LEAP) to identify bank account information for the following payment types:

  • Single Family Upfront Premiums (Title I and Title II)
  • Single Family Periodic (Monthly) Premiums  (Title I and Title II)
  • Single Family Claim Remittance Amounts (Title II)

An institution user can add, edit or remove cash flow account information in the Cash Flow Account Setup section. The user must have the Cash Flow Account Setup role in FHA Connection. The Institution’s FHA Connection Application Coordinator must grant this role to the appropriate user(s).

When banking information is updated, an eight-calendar-day prenote test with is required for the new account setup.  During this prenote period, two accounts will temporarily reside in Cash Flow Account Setup for the same business area.  The existing account will have the status of Active/Pending update and the new account will have the status of Prenote in process.  Payments during this prenote period for this business area will be made using the existing (Active/Pending Update) cash flow account until the prenote is successfully completed.

For more information see:
LEAP User Manual 
FHA Connection User Guide
Handbook 4000.1 I.A.6.b.vii.

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-01316