Lender Transfers

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Chapter 2
Mortgage Credit Guidelines
Page 2-17

The transferring lender must make the transfer electronically utilizing FHA Connection. Only if extenuating circumstances exist, will HUD endorsement technicians transfer a case number to a new lender. In those instances, an assignment letter must be sent to the attention of an endorsement technician in the HUD Homeownership Center (HOC) to make the necessary changes in CHUMS, noting that this is an exception and stating the reason.

If a lender will not transfer a case number, but the borrower wants to work with a new lender, the new lender should:

(1) Send the letter to the HOC specifically outlining the steps they have taken to accomplish the transfer;

(2) List what fees (if any) the original lender has requested;

(3) Provide a resolution to that request for payment for services, along with a letter signed by the borrower stating they want to work with the new lender.

HUD will cancel the first case number to enable you to order a new case number and appraisal.

If your borrower has requested a transfer in writing, the lender must comply with their request as outlined in HUD Handbook 4000.4 Page 1-16A. However, the borrower may still be civilly liable to the old lender for payment of certain fees.