Notice of FHA Claims Payment Slowdown
We hope this message finds you well. We are writing to inform you of a recent development regarding the U. S. Department of Housing and Urban Development (HUD) claim processing and payment delays on FHA submitted claims.
Over the past week, we have observed a slowdown in HUD’s timeframe for processing and paying FHA claims. This delay appears to be affecting a significant number of claims, and we wanted to make you aware of the situation so that you can respond to this development accordingly.
What This Means for You:
- If you have submitted FHA claims recently, you may experience longer-than-usual processing times.
- Payments that would typically be issued within 2-3 days may be delayed.
- Claims with error codes which HUD is not working are at risk of being deleted.
- If you typically cancel your inspections and insurance at the time of conveyance for your Part A conveyance claims, you may want to consider keeping those services active until you have confirmed that HUD has paid the claim; it isn’t until HUD pays the claim that HUD has accepted the property into their inventory, relieving the servicer of responsibility for protecting the property.
What CRFS is Doing:
- We are closely monitoring the situation and are attempting to contact HUD to obtain updates on any changes or resolutions to the current delays.
- Monitoring claim payments, as usual, with an eye toward assessing any changes in HUD’s processing, positive or negative.
Our team is committed to ensuring that all claims are processed as efficiently as possible on our end.
If you have any questions or concerns, please don’t hesitate to reach out to us. And we will keep you informed as any new information is known to us.
Thank you for your understanding and continued partnership.
Best regards,
Sean Snook
Operations Senior Vice President / Assurance
585-831-3858
