The Federal Housing Administration’s system for quality control on the loans it backs is currently offline after weeks of issues led to the inadvertent deletion of an unknown amount of data and documents.
The FHA announced Wednesday that it temporarily pulled the plug on its Loan Review System on Monday, as it works to address “various server errors” that have taken place over the last several weeks.
According to HUD, the efforts to address those server errors “inadvertently resulted in both data and documents being deleted.”
In order to address the loss of the data, HUD pulled the Loan Review System completely offline on Monday as it works to both fix the main issue and recover the lost data.
“On Monday, July 22, 2019, the LRS was temporarily shut down to allow system teams from the Department of Housing and Urban Development to recover lost data and continue analysis to determine the root cause of the issue,” HUD said in a lender bulletin.
In the bulletin, HUD said that it anticipates the Loan Review System being back online “no later than Friday, July 26.”
According to HUD, to make sure that lenders are not “adversely impacted” by the outage, the FHA will “make adjustments to response due dates.”
The Loan Review System is HUD’s platform for FHA Title II Single-Family quality control processes.
The processes included in the LRS include (details from HUD):
- Various Post-Endorsement Loan Reviews
- Unconditional Direct Endorsement Authority Test Cases
- Lender Monitoring Reviews
- Lender Self-Reporting of Fraud and Other Material Findings
The LRS is also used to communicate the findings of the FHA’s defect taxonomy, the system the agency uses to tell lenders if there are issues with a particular loan.
