HUD activates Pay.gov for electronic lender fees
- By Mary Mosquera
- May 20, 2004
The Housing and Urban Development Department activated Pay.gov for the agency's business partners in the F51/Institution Master File System to provide a quicker and more efficient method for them to pay fees to the Office of Lender Approval.
Advanced Technology Systems Inc. of McLean, Va., said this week it developed the Pay.gov interface under contract to HUD's Office of Real Estate Management using HUD's FHA Connection, the Internet-based application used by business partners conducting official business with the Federal Housing Administration.
Pay.gov is a government-wide transaction portal the Treasury Department's Financial Management Service developed to provide for electronic collections that enable agencies to conduct online business.
Currently, all lenders must pay a fee to HUD when a new branch is approved, followed by annual recertifications of all active branches.
Prior to Pay.gov, these fees were submitted to HUD via a lockbox at the Bank of America in Atlanta, which then processed the fees and transmitted the collections information to HUD every night. Then, photocopies of all canceled checks were sent to OLA where staff members had to manually reconcile each collection against their records. This manual process was time-consuming and prone to errors.
With Pay.gov, bills are presented electronically for collection purpose. Pay.gov provides access control services to facilitate immediate collection and then issues reports to HUD about these automated transactions, which are integrated into the IMF processing.
Pay.gov will reduce costs for HUD since Treasury provides these transaction services free of charge. Previously, HUD paid Bank of America for its lockbox services and a fee per keystroke of data entry. HUD anticipates saving one dollar for every form and collection authorization received in electronic format.
Mary Mosquera is a reporter for Federal Computer Week.