As announced in Mortgagee Letter (ML) 2019-13, on or after October 15, Mortgagees may request the assignment of an FHA case number for a Unit in a Condominium Project that is not included in the list of FHA-approved condominiums if the project meets certain eligibility requirements. HUD will suspend the issuance of new FHA case number if the number of insured FHA-insured mortgages exceeds the established maximum insurance concentration.
FHA systems will be enhanced to permit the issuance of case numbers in unapproved projects. From the effective date of the rule and the Handbook 4000.1 sections until the systems changes are completed, and to ensure creditworthy homebuyers and homeowners will be able to benefit from the Single-Unit Approval (SUA) process, the interim solution in ML 2019-13 will be implemented.
FHA Condominium Database: Determine Project Status
The Mortgagee must first confirm the Unit is located in a Condominium Project that is not FHA-approved at the time of case number assignment.
If the Unit is in a Condominium Project that is not currently approved but has an FHA Condo ID, the Mortgagee will have to enter the FHA Condo ID when the FHA case number is requested.
To search the status of a Condominium Project, the Mortgagee must search the FHA- condominiums database located in the following website:
If a Condominium Project is listed in the lookup screens but has any of the following “Status”, it is currently not FHA-approved and the Mortgagee may request a case number under the Single-Unit Approval process:
- Rejected, including “Register Single-Unit”
Effective October 15, 2019, the following Interim Protocols for data entry associated with the case number assignment for a Single-Unit Approval must be followed.
FHA Connection: Case Number Assignment Request
To process a Case Number Assignment for a Single-Unit Approval, the Mortgagee will follow the standard process for requesting a case number for a condominium loan and complete the following fields in the Case Number Assignment screen:
- Select the associated Condo ID, if one exists (FHA’s identifier for the condominium project) in the “PUD/Condo ID” field; and
- Select “Single-Unit Approval” from the drop-down menu within the “Site Condo” field.
FHA Resource Center Submission
The Mortgagee will be required to email information from the HUD proposed collection form (HUD-9991) FHA Condominium Loan Level / Single-Unit Approval Questionnaire available at https://www.reginfo.gov/public/do/PRAICList?ref_nbr=201908-2502-001
- at a minimum, the information requested under Sections 1.a, 2.a, 2.b, and 3.a.1, Total Number of Units in the Condominium Project (only) must be submitted either on the proposed collection form (HUD-9991), on a Mortgagees form, or submitted in the body of the email as long as the required information is provided;
- email the required form/information to the FHA Resource Center at email@example.com;
- the email subject line must read ”SUA Holds Tracking”;
- submit separate emails for each Single-Unit Approval request.
Homeownership Review Process
The jurisdictional Homeowner Center (HOC) will process to determine if a case number can be issued. Once the appropriate verifications have been completed, the HOC will provide a response when the Holds Tracking is removed.
Upon their receipt of the SUA Holds Tracking service request the HOC will respond within three (3) business days. Mortgagees can also check FHA Connection under Case Processing, Case Query or Case Number Assignment, Holds Tracking to confirm if the case number has been released.
The case binder must contain all documentation relied upon by the Mortgagee to justify its decision to approve the Mortgage.
Questions can be directed to the FHA Resource Center by telephone at 1-800-CALLFHA (1-800-225-5342) or by email at firstname.lastname@example.org.
For more information regarding condominium projects and project approval refer to:
- Mortgagee Letter 2019-13 available at: https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
- Condominium Project Eligibility and the Approval Submission Process located in Handbook 4000.1 II.C.2 and II.C.3. available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
- The FHA Condominium Mortgage Insurance page at: https://www.hud.gov/program_offices/housing/sfh/ins/sfh_ins_condominiums