FHA issued Mortgagee Letter 2021-21, announcing the transition of the Single Family Default Monitoring System (SFDMS) from FHA Connection to FHA Catalyst. Per the Mortgagee Letter, beginning December 1, 2021, mortgagees must submit all default data in the FHA Catalyst: SFDMS Reporting Module or through the Electronic Data Interchange. FHA also clarified that reporting the Default Reason Code is not optional, updated and streamlined the data elements submitted as part of default reporting, and updated fatal error codes to ensure data integrity in FHA portfolio reporting. The Mortgagee Letter is effective immediately.
Click to view the FHA Mortgagee Letter 2021-21: https://www.tenaco.com/wp-content/uploads/2021/09/FHA-Mortgagee-Letter-2021-21-09-13-21.pdf
