What are the Single Family Default Monitoring System (SFDMS) reporting requirements for delinquent FHA mortgages?

The Mortgagee must report in the Single Family Default Monitoring System (SFDMS) the Delinquency/Default Status Codes that accurately reflect the stage of delinquency or Mortgagee action.

Each month, the Mortgagee must report Delinquent servicing activities for all Mortgages that are 30, 60, and 90 Days or more Delinquent as of the last Day of the month. The Mortgagee must report the statuses of three classes of Mortgages each month:
  • New Delinquencies: The Mortgagee must report Delinquent accounts when one full installment is due and unpaid (30 Days Delinquent - Status Code 42) and must continue reporting the applicable Status Code until the delinquency is resolved.
  • Open Delinquencies: The Mortgagee must continue to report a Status Code 42 until a servicing action has been initiated/approved and/or completed which would warrant a Status Code change. Delinquencies Resolved During the Cycle Month: The Mortgagee must report the appropriate Status Code to reflect that the delinquency has been addressed.
For every case for which reporting is required, the Mortgagee must submit delinquency data documenting the status as of the end of the month. The Mortgagee must submit this data by the fifth business day of the following month. Mortgagees may submit additional delinquency data throughout the month.

The Mortgagee must report the correct Delinquency/Default Status (DDS) Code reflecting the status of the Mortgage. The Mortgagee must include applicable status dates when reporting DDS Codes. SFDMS permits the submission of delinquency data throughout the month.

The Mortgagee must ascertain and report the specific reason for the Delinquency/Default using the Delinquency/Default Reason (DDR) Codes.

Error Reports and Correction
The Mortgagee may receive Error Reports from two systems:
  • Electronic Data Interchange (EDI), which provides the All Transaction Sets 824 (TS824) Report (see the EDI Implementation Guide for additional information); or FHA Connection (FHAC)
The Mortgagee is responsible for retrieving Error Reports from these systems and submitting necessary corrections by the fifth business day. HUD will not provide additional time to enter corrections.
Correction of a Previously Reported Status Code
When a Mortgagee discovers that a previous Status Code was reported in error, the Mortgagee must:
  • report a Status Code 25, Cancel, to advise HUD that the last Status Code reported was in error and should be preserved as a historical record without having an effect on the default sequence; and report the correct Status Code
Questions related to the SFDMS may be emailed to sfdatarequests@hud.gov

HUD's Single Family Delinquency / Default Reporting web page is available at: https://www.hud.gov/program_offices/housing/sfh/nsc/sfdms

See policy in Handbook 4000.1 Section III.A.2.h.ii. at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

SFDMS Reporting Codes are located on the Single Family Housing Policy Handbook (SF Handbook; HUD Handbook 4000.1) Supplemental Documents web page at: https://www.hud.gov/program_offices/housing/sfh/handbook_references

EDI Guide is located on the Electronic Data Interchange Implementation Guide web page at: https://www.hud.gov/program_offices/housing/comp/edi/1103toc

FHA Connection Guide is located at the FHA Connection website under references at: https://entp.hud.gov/clas/index.cfm 

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-04038