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FHA Case Number Concerns

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Jamisonke
New Contributor

FHA Case Number Concerns

So, I have an interesting dilemma.  I know that people claim that two FHA case numbers cannot be issued for the same property, but this is what has happened.  Well, sort of. I was working with a lender who was giving me the run around.  That lender pulled a FHA case number for the property I am in contract for.  Unfortunately, they entered the wrong zip code when requesting the case number.  Some time passed, and I am now working with another lender who has pulled a case number for the same property using the correct zip code.  A case number was issued.  My loan has been approved.  I am now being told that the original lender needs to cancel the case number they pulled from FHA.  That lender refuses to do so.

 

This results in a couple of questions:

1.  Can I force the original lender to cancel their case number.

2.  What are the implications for the loan?

 

I am supposed to close at the end of January and I am concerned there will be problems.  Any advice is appreciated!

 

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Current FICO scores: EQ 762, EX 761, TU 773
Message 1 of 6
5 REPLIES 5
BrianB_The_Loan_Professor
Valued Contributor

Re: FHA Case Number Concerns

Contact the manager or broker for the office - they have to release the case number - 

if they dont, have your lender get you the contact info for the agency that does them and call yourself - they can and will help

 

It is a tough pil to swallow when someone doesnt follow through on a loan after putting time into it - if they screwed around and lost your business it is on them

but the frustration can cause situations like this - keep on it they will take care of it - 

if none of the above works - have a RE atty draft a letter to them for you - a little threat of being sued for damages will get the ball rolling

 

Hopefully it doesnt come to that

 

Good Luck

Brian

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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Message 2 of 6
Jamisonke
New Contributor

Re: FHA Case Number Concerns

I suppose I don't understand why the 1st case number is truly an issue. Because it was pulled using an incorrect zip code in the address, it technically is a different property in the eyes of FHA, right?

Why exactly does it have to be cancelled?
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Current FICO scores: EQ 762, EX 761, TU 773
Message 3 of 6
BrianB_The_Loan_Professor
Valued Contributor

Re: FHA Case Number Concerns

They want to avoid any confusion in the future - it just muddies up the system and could pop up at a later time - when you have FHA the case number stays with the home  even if you refi later to another FHA - 

How did they find out that the other case number had been pulled?

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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Message 4 of 6
Jamisonke
New Contributor

Re: FHA Case Number Concerns

After I found out that the second lender had also pulled a case number, I told them that the original lender had pulled a case number too. I had figured that they would see a case number was pulled by the original lender in FHA's system, but the system didn't recognize the property as the same address (due to the original lender entering the wrong zip code).

Although this may cause problems in the future, does it have any affect on my ability to close this loan? Can I close on the property and subsequently contact a RE Atty to put pressure on the original lender to cancel the case number?
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Current FICO scores: EQ 762, EX 761, TU 773
Message 5 of 6
BrianB_The_Loan_Professor
Valued Contributor

Re: FHA Case Number Concerns

That is a decision your lender will have to make- 

if they insist you will have to fight it now

 

It really isnt that hard - just apply the right pressure and they will do what they need to do - 

Your LO should be able to contact the HUD office and find out if they can help or at least tel you what you need to do - 

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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Message 6 of 6
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