What are fatal errors and how does a Servicer generate a report in Neighborhood Watch showing their fatal errors?

Fatal errors prevent HUD’s Single Family Default Monitoring System (SFDMS) from accepting a Servicer’s reporting of a delinquent Mortgage.  Generally, these errors are the result of the following:
  • Missing/incorrect FHA case number;
  • Incorrect/incomplete Servicer ID;
  • Invalid insurance status;
  • Invalid oldest unpaid installment date; and/or
  • Invalid oldest unpaid installment date format.
 
A Servicer can obtain a list of fatal errors by performing the following steps:
 
  • Select Delinquent Reporting Servicer under the Servicing tab on the Neighborhood Watch home page;
  • Enter the first few letters of the Servicer’s name or the 5-digit FHA Lender ID and click Submit;
  • Select the Servicer’s name from the list provided and click Submit; and
  • Select Creation Date and Descending from the Sort By drop down lists and click Submit.
 
The report displays a list of fatal and non-fatal errors for seriously delinquent Mortgages reported by the Servicer to HUD through SFDMS.  The results are sorted in descending order by Creation Date, or the date the delinquent mortgage was reported to SFDMS.
 
Neighborhood Watch can be accessed by Mortgagees at: https://entp.hud.gov/sfnw/nw/
 
Information on Neighborhood Watch can be accessed using the Neighborhood Watch link in the Lender Performance section at: https://www.hud.gov/program_offices/housing/sfh/lender

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-02589