The Federal Housing Administration (FHA) has recently announced changes to its Unique Entity Identifier (UEI) policy for mortgage lenders and entities seeking to conduct business with FHA. The updated policy, outlined in ML 2024-09, simplifies reporting requirements that were initially established in 2022 and implemented later that year.
Under the new policy, FHA-approved lenders are required to obtain and maintain a UEI number in the General Services Administration’s (GSA) System for Award Management (SAM.gov). This requirement aligns with a government-wide directive from the GSA, an agency responsible for overseeing federal agencies’ basic operations and support functions.
The UEI is a crucial compliance measure that aids the Department of Housing and Urban Development (HUD) in adhering to federal regulations such as the Federal Funding Accountability and Transparency Act of 2006 and the Digital Accountability and Transparency Act of 2014. These laws mandate federal agencies to report data on federal awards, which are tracked using the UEI.
The latest mortgagee letter, ML 2024-09, modifies FHA’s eligibility criteria by eliminating the requirement for the home office geographic address to match in both the Lender Electronic Assessment Portal (LEAP) and SAM.gov. This amendment aims to enhance data reporting efficiency, promote lender compliance, and minimize inconsistencies between the two platforms.
The policy changes apply to all FHA-approved lenders and other entities looking to engage in business with FHA, including mortgage underwriters, appraisers, housing counselors, and real estate brokers. These entities must review their SAM.gov registration annually and maintain an active profile on the website to remain compliant with FHA’s UEI policy.
In summary, FHA has simplified its reporting requirements for mortgage lenders by requiring them to obtain a UEI number in SAM.gov while eliminating a requirement for home office geographic address consistency across LEAP and SAM.gov platforms. The updated policy applies to all FHA-approved lenders seeking business opportunities with FHA.
