How does a Mortgagee respond to a notice of deficiency (NOD)?

A notice of deficiency (NOD) is issued when a Mortgagee has not completed ALL parts of the annual recertification process within 90 days of its fiscal year-end.
Mortgagees that receive a NOD should immediately log into the Lender Electronic Assessment Portal (LEAP) and submit the missing items.
  • Supervised, Nonsupervised, and Investing Mortgagees are required to submit the online certification, remit the recertification fee, and submit financial statements.
  • Government Mortgagees are required to submit the online certification.  Government Mortgagees are not required to pay a recertification fee or submit financial information.
FHA's issuance of the NOD is not an administrative sanction and does not prevent a Mortgagee from conducting business as usual, such as adding branches, retrieving case numbers, underwriting, closing, insuring or performing any other FHA-related processes.
The Annual Recertification and LEAP Information pages can be viewed at: under Approvals & Renewals.


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-02794