FHA Pauses Effective Date for Catalyst EAD Module

FHA on Thursday announced a pause in the mandatory effective date for its Electronic Appraisal Delivery Module, saying it is “reassessing aspects of [its] development and implementation.”

“FHA strongly recommends that industry partners pause EAD onboarding and direct integration activities until final determinations are made regarding the electronic appraisal delivery system for loans originated for FHA insurance endorsement,” FHA said in an electronic edition of FHA Info. “This recommendation is only for the FHA Catalyst: Electronic Appraisal Delivery Module and does not impact integration or onboarding activities for any other FHA Catalyst module. FHA will provide further updates on its plans for electronic appraisal delivery as they become available.”

FHA noted since the start of its information technology modernization effort in April 2019, it has successfully modernized several key systems and associated processes on the FHA Catalyst technology platform. FHA Catalyst’s Case Binder Submission, Claims and Single-Family Default Monitoring System Reporting Modules are handling exchange and integration of key information FHA transactions.

“The FHA Catalyst work remains a top priority, and FHA is dedicated to delivering top-quality 21st century technology for lenders, servicers and FHA,” FHA said.

FHA did not indicate a new effective date.