From time to time, when you are working with a lender to get an FHA loan, a reason arises that you decide you want to work with another lender. The reason that you decide to work with a different FHA lender once you have started the loan process isn’t all that important, but what happens next can be.
Anytime you start the process of getting an FHA loan with one lender and then decide to switch to another lender, the first lender must actually “transfer” the FHA case number to the new lender by logging into FHA’s website and transferring the case number to the new lender.
It is a simple process really – it takes all of less than a couple of minutes and is usually done by one of the people processing the loan.
When your case number is transferred from one lender to another, typically there are no fees “allowed” (although technically, one lender could collect a lock fee from another) and I haven’t seen any lenders request money to transfer a case number. The transferring lender will typically provide a copy of the appraisal if requested and will NOT provide any of the processing documents that are associated with the loan unless negotiated by the new lender.
An FHA case number transfer is usually something that is done behind the scenes when you switch from one lender to another – and only occasionally does it need to involve the borrower formally requesting their documents be transferred to the new lender.
But should your new lender tell you that you need to call your old lender and request a case transfer, one thing is certain:
It didn’t go as smoothly as it should have.