www.hudclips.org 


DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D. C. 20410

December 22, 1981
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING - FEDERAL HOUSING COMMISSIONER             IN REPLY REFER TO:
Mortgagee Letter 81-40
TO:        ALL APPROVED MORTGAGEES
SUBJECT:   Redemption of Debentures in Exchange for the Payment of
           Mortgage Insurance Premiums
 
     This Mortgagee Letter is intended to clarify the time limitation
established for submission of debentures in exchange for the timely
payment of mortgage insurance premiums (MIP).  The Mortgagee's Guide,
Handbook 4110.2 , Chapter 13, paragraph 13-14 provides:  "Debentures
must be received by HUD in Headquarters within five calendar days
following the due date of the premium regardless of whether it is a
renewal or initial premium.  Any debenture not received by HUD in
Headquarters within five calendar days will be returned as
unacceptable for purchase."
 
     For the purpose of this procedure, if the fifth day falls on a
Saturday, Sunday or holiday, HUD will accept such debentures on the
next business day thereafter.  For example, if the fifth calendar day
following the due date of the premium is on a Friday, which also
happens to be a holiday, HUD will accept the debentures, before close
of business, the following Monday, which is the next business day.
 
     For further information, contact John Stahl, Office of Finance
and Accounting, Washington, D.C. 20410. Telephone (201) 755-5154.
 
                              Sincerely,
 
                              Philip D. Winn
                              Assistant Secretary for
                              Housing - Federal Housing Commissioner