Screenshots for UPFRONT System

Single Family FHA Single Family Origination > Upfront Premium Collection

Upfront Premium Payments
Lenders use the FHA Connection Upfront Premium Collection menu options (Figure 1) to pay and
monitor upfront mortgage insurance premium (UFMIP or MIP) payments. Using this menu, lenders can
view a history of upfront MIP payments, retrieve current upfront MIP payment information on requested
cases, and generate upfront MIP summary reports at the lender and branch level. In addition, lenders can
access the message board from HUD’s upfront premium collection system.
This FHA Connection Guide module focuses on submitting upfront MIP payments. The following
sections describe and provide training for the upfront MIP online payment process:
• Overview of Upfront MIP
• Upfront MIP Payment Options
o Paying Premium
o Paying Penalties
• Processing Upfront MIP Payments
• Viewing Payment History
• Tools for Researching Payment-related Information
Note: Find the FHA Connection Guide documentation for the other Upfront Premium Collection options
as follows:
• Upfront Premium Case Information provides training for viewing upfront MIP information for a
specific case
• Upfront Premium Reports provides guidelines for retrieving lender and/or branch level
information through various reports

Payment options
covered in this
FHA Connection
Guide module

Report options
discussed in
Upfront Premium
Reports module

Case level options
discussed in
Upfront Premium
Case Information
module

Figure 1: Upfront Premium Collection menu
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Single Family FHA Single Family Origination > Upfront Premium Collection

Overview of Upfront MIP
The upfront MIP for a case varies based on the date an FHA case number was assigned to the loan:
• On or after January 1, 2009 (refinance cases only):
See Mortgagee Letter 2008-40.
• On or after October 1, 2008:
See Mortgagee Letter 2008-22. For HOPE for Homeowners loans, see Mortgagee Letter 2008-29.
• Between July 14, 2008 and September 30, 2008:
See Mortgagee Letter 2008-16 for risk-based premium pricing structure.
• Before July 14, 2008:
Upfront MIP is charged at one and one-half percent (1.5%) of the mortgage amount.
The MIP Calculator on the FHA Connection's Case Processing menu can be used to determine the upfront MIP.
Mortgagees must remit upfront MIP within 10 calendar days of the mortgage closing or disbursement
date, whichever is later. Penalties are assessed on late upfront premium payments as follows:
• Late: A one-time late charge of four percent (4%) is assessed on an upfront MIP payment
received more than 10 calendar days after the mortgage closing or disbursement date.
• Interest: A one-time interest charge is assessed on an upfront MIP payment received more than
30 calendar days after the mortgage closing or disbursement date. The interest rate is the U.S.
Treasury Current Value of Funds Rate in effect when the upfront MIP payment is received.
A case cannot be endorsed for FHA insurance if insufficient upfront MIP was sent and/or there are unpaid
late and/or interest charges (penalties). To determine the case information on record at the time of
endorsement (e.g., closing/disbursement date, upfront MIP paid/due, and any penalties due), see Tools
for Researching Payment-related Information at the end of this module.

Upfront MIP Payment Options
All upfront MIP payments are sent electronically, either through the Internet using the FHA Connection or
through CPU to CPU batch file transmissions, and processed using Pay.gov, a secure federal
government-wide collection portal managed by the Financial Management Service bureau of the U.S.
Department of the Treasury. Pay.gov processes a payment electronically (electronic funds transfer or
EFT) through the Automated Clearing House (ACH) using a checking account debit. The Federal
Reserve Bank of Cleveland, which maintains the Pay.gov system, is used for the ACH debit.
Note: If the lender’s account has insufficient funds at the time of payment, the payment is given a failed
status. HUD does not re-present the payment for collection the next day.
In order to pay upfront MIP using Pay.gov, the lender must set up an active banking cash flow account for
Single Family Upfront to be used by Pay.gov for withdrawing funds. This cash flow account setup also
includes the lender’s primary and secondary contacts who will receive an automated e-mail with the status
of each payment that is submitted. See the FHA Connection Guide module, Cash Flow Account Setup,
to set up a cash flow account.
Pay Upfront Premium options, located on the Upfront Premium Collection menu (Figure 1), enable
authorized users to make upfront MIP payments online via the FHA Connection. Payments can be
submitted on business days between the hours of 7:00 a.m. to 9:00 p.m. ET. However, only payments
submitted before 8:00 p.m. ET are processed that day. Payments received after 8:00 p.m. ET have a
"received date" of the next business day. (The Federal Reserve holiday calendar is observed.) Penalties
are assessed based on the “received date”. More than one payment can be submitted per day.
Note: Payments can be made for all Title II cases requiring upfront MIP, except Home Equity Conversion
Mortgage (HECM) cases.
Pay Upfront Premium options for submitting payments via the FHA Connection include:
• Pay upfront MIP for purchase cases (includes conventional refinance cases)
• Pay upfront MIP for refinance cases (FHA to FHA refinance cases only)
• Pay late and interest penalties only
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Single Family FHA Single Family Origination > Upfront Premium Collection
General information about Pay Upfront Premium options and assistance in retrieving information is also
available by clicking Help Links
in the upper right portion of any of the Upfront Premium
Collection pages (e.g., Figure 2). Select the desired topic for detailed information.
For more information on batch file transmissions, see the Upfront Mortgage Insurance Premium Batch
Payment Processing Instructions for CPU to CPU Transmissions located at
http://www.hud.gov/offices/hsg/comp/premiums/sfbchinu.cfm.

Paying Premium
The Pay Premium for Purchase Cases and Pay Premium for Refinance Cases choices enable
authorized users to submit upfront premium payments online, via the FHA Connection. If necessary,
upfront penalties, i.e., late and/or interest, can be submitted with the MIP payment. See the Processing
Upfront MIP Payments section for step-by-step instructions.
Note: For refinance cases, use the Pay Premium for Refinance Cases option if the old loan was FHAinsured and the new loan is being FHA-insured. If the old loan was not FHA-insured and the new loan is
being FHA-insured (i.e., conventional refinance), the new loan must be processed as a purchase case,
and the Pay Premium for Purchase Cases menu option is used instead.

Paying Penalties
Using the Pay Penalties Only option, authorized lender employees may submit late and/or interest fees
associated with a case or group of up to 15 cases. (Keep in mind, the Pay Penalties Only option does
not accommodate premium payments; if you need to combine submission of premium and penalty
payments for a case, use Pay Premium for Purchase Cases or Pay Premium for Refinance Cases.)
To make a penalty only payment, select the Pay Penalties Only option and follow the general
instructions outlined in the Processing Upfront MIP Payments section that follows.

Processing Upfront MIP Payments
The instructions that follow illustrate how to submit an upfront MIP payment for a purchase case. These
steps serve as instructions for making any type of upfront payment (as listed above) to HUD via FHA
Connection to be processed using Pay.gov. The payment is automatically taken from your lending
institution’s checking account that is designated in the cash flow account set up for the branch ID
submitting the payment.
After identifying your lending institution (Figure 2), there are five steps, i.e., Pay Premium or Pay
Penalties pages, that lead you through an upfront payment transaction (all five steps are required):
1. Add Cases (Figure 3)
2. Verify Cases (Figure 4)
3. Payment Summary (Figure 5)
4. Send Payment
5. Payment Results (Figure 6)
Each of these pages lists the five required steps at the top of the page. As illustrated in Figure 3, the
current step is indicated in bold text at the top of the corresponding Upfront Premium Collection page to
indicate the current step.
1. After signing on to the FHA Connection, follow the menu path: Single Family FHA > Single Family
Origination > Upfront Premium Collection.
Note: The FHA Connection menu path appears as a “breadcrumb trail” in the red banner at the top of
each function page and can be used for navigation.
2. On the Upfront Premium Collection menu page (Figure 1), click the payment transaction to
perform, for example, Pay Premium for Purchase Cases. The Pay Upfront Premium - Purchase
Cases page appears (Figure 2).
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Single Family FHA Single Family Origination > Upfront Premium Collection

Click for additional information
about Upfront Premiums

Figure 2: Pay Upfront Premium - Purchase Cases page

3. Type the last five digits of the FHA-assigned mortgagee identification number in the Mortgagee ID
(10-digit) field. This must be the branch ID associated with the correct cash flow account. Click
. The Upfront Payment List - Purchase Cases page appears.

Bold step indicates
where you are in the
payment process

Figure 3: Upfront Payment List - Purchase Cases page

4. For each case payment, type the 10-digit FHA case number for the new mortgage being insured, the
closing (or disbursement) date, and the upfront MIP payment amount in the appropriate boxes, and
click
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. The Upfront Payment Verification - Purchase Cases page appears (Figure 4).
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Single Family FHA Single Family Origination > Upfront Premium Collection

Bold step
indicates where
you are in the
payment process

Figure 4: Upfront Payment Verification - Purchase Cases page

5. Verify the entered information. Note that the system automatically calculates any late and/or interest
charges and adds these to the payment total. If corrections are necessary, click
and update the information. If the information is correct, go to step 6.
6. When the payment information is correct, click
Purchase Cases page appears (Figure 5).

. The Upfront Payment Summary -

Figure 5: Upfront Payment Summary - Purchase Cases page

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Single Family FHA Single Family Origination > Upfront Premium Collection
7. Review the payment summary information, especially noting the Account Ending with Digits field.
Optionally, enter a check number. If payment information is correct, click
payment.

to submit the

8. The Upfront Payment Processing - Purchase Cases page appears indicating the payment is being
submitted. When submission of the payment information is complete, the Upfront Payment
Processing Results - Purchase Cases page appears (Figure 6).

Figure 6: Upfront Payment Processing Results - Purchase Cases page

9. Review and print the Upfront Payment Processing Results - Purchase Cases page for use as a
reference. The HUD Upfront Tracking ID identifies the payment transaction.
For assistance with field definitions, click

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Help Links

.

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Single Family FHA Single Family Origination > Upfront Premium Collection

Viewing Payment History
Use Upfront Premium Payment History to view and check the status of upfront MIP payments made by
your lending institution/branch. Access your upfront payment history using the following steps:
1. After sign on, follow the menu path: Single Family FHA > Single Family Origination > Upfront
Premium Collection.
2. On the Upfront Premium Collection menu page (Figure 1), click Payment History. The Upfront
Premium Payment History - Query page appears.
3. Type the last five digits of your FHA-assigned branch/mortgagee identification number in the
Mortgagee ID (10-digit) field.
4. Optionally, revise the dates in the Payment Received Date (mm/dd/yyyy): from and to fields.
5. Click

. The Upfront Premium Payment History List page appears (Figure 7).

Payment history lists all payments submitted online via the FHA Connection, as well as any submitted
through CPU to CPU batch file transmissions. Payment information includes the date the payment was
received, the payment amount, and a File Name indicator as to whether the payment was received online
via the FHA Connection (Online) or via CPU to CPU batch file (indicated by a .DAT filename). For CPU to
CPU batch files, the File Status is provided (Accepted or Rejected). (For online payments made using
the FHA Connection, the File Status is not applicable and is indicated as N/A.) History information also
includes the HUD Upfront and Pay.gov Tracking IDs and Payment Status.
For assistance with field definitions, click

.

Help Links

Click link to display payment details

Figure 7: Upfront Premium Payment History List page

6. For additional payment information, you may:
beside the corresponding payment
• Reprint the payment summary by clicking the printer icon
(Figure 7); the Upfront Premium Payment History Reprint page appears (Figure 8).
• Download the payment details to a Microsoft® Excel® spreadsheet file by clicking the download
icon
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beside the corresponding payment; or
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Single Family FHA Single Family Origination > Upfront Premium Collection
• View the details of a payment by clicking the Payment Received Date link for the desired payment
(Figure 7); the Upfront Premium Payment History Details page appears (Figure 9).

Figure 8: Upfront Premium Payment History Reprint page

Figure 9: Upfront Premium Payment History Details page

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Single Family FHA Single Family Origination > Upfront Premium Collection

Tools for Researching Payment-related Information
The FHA Connection provides a variety of tools to:
• determine FHA cases with upfront MIP due
• determine FHA cases with penalties due on upfront MIP submitted after the grace period
• research case information on record in HUD’s systems prior to submitting upfront MIP payments
• view upfront MIP payment information

Locating Cases with Upfront MIP Due
The MIP Not Paid by Mortgagee Report provides a list of cases for which upfront MIP is required and
has not been paid (note that HECM cases may be included in the report). Use Origination Reports
Request and Origination Reports Retrieval on the Origination Reports menu to request and retrieve
the report. (See the FHA Connection Guide module, Origination Reports.)
If a case cannot be endorsed due to outstanding upfront MIP, use Case Query on the Case Processing
menu to quickly determine upfront MIP paid and due.

Locating Cases with Penalties Due
The Upfront Premium Collection menu (Figure 1) provides a Penalties Due report (see the FHA
Connection Guide module, Upfront Premium Reports) which lists cases in your company’s portfolio for
which upfront premium is required and late and/or interest fees are due.
In addition, the following Upfront Premium Collection menu options (Figure 1) can provide assistance
in penalty research:
• Case Master Summary provides detailed case information that includes the upfront MIP available
for endorsement and details on penalties due.
• Payment Details displays payment information for a specific case, including any assessed (and
not paid) late and/or interest.
• Unendorsed Cases reports payment and suspension information as well as status and penalty
indicators for all cases in your company’s portfolio for which an upfront MIP payment was
submitted but the case is not yet endorsed.

Researching Case Information on Record
Prior to entering and submitting payment information, use Case Query on the Case Processing menu to
verify the following case information in HUD’s records:
• Upfront MIP due or received
• Originator or sponsor/agent of the loan (case) is your lending institution. (Use Case Transfer on
the Case Processing menu if the loan was transferred.)
• Case type (e.g., purchase or refinance)
• Closing or disbursement date
Also, as mentioned above (Locating Cases with Upfront MIP Due), the MIP Not Paid by Mortgagee
Report can be used to get a list of cases that still require upfront MIP for endorsement.

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Viewing Upfront MIP Payment Information
Use Payment History to follow up on payments submitted online via the FHA Connection or through
CPU to CPU batch file transmissions. This page can help you determine whether the:
• submitted batch file was accepted or rejected by HUD based on file edits. Batch file transmission
results are typically available within one to two hours after file submission.
Note: Online payments can be viewed directly after submission.
• state of the payment transaction is complete. Statuses include Settled (payment transaction
successfully processed by Pay.gov), Failed (payment transaction that was processed by Pay.gov
failed, e.g., failed due to insufficient funds), In Process (payment transaction being processed by
Pay.gov), or Processing error; contact SF Admin Help Desk (internal processing error occurred).
Transaction information is available within 24-48 hours after the payment is transmitted, either
online or via batch file.
In addition, the following are available on the Upfront Premium Collection menu (Figure 1) for research
and information updates. (See the FHA Connection Guide module, Upfront Premium Case
Information.) Use:
• Payment Details to view payment information for a specific case, including any error that caused
a payment suspension.
• Case Corrections to correct a case with a suspended payment.
• Case Master Summary to view summary payment information for a specific case, including any
suspended amounts and penalties.
The Unendorsed Cases report can also be used to view payment information for all of your institution’s
cases for which a payment was made but the case is not yet endorsed. (See the FHA Connection
Guide module, Upfront Premium Reports.)

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