www.hudclips.org 


U. S. Department of Housing and Urban Development
Washington, D.C. 20410-8000

July 20, 1992
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
MORTGAGEE LETTER 92-22
     TO:  ALL APPROVED MORTGAGEES
     SUBJECT:  Announcement of Automated Clearing House Payments (ACH)
                 for Monthly Risk-Based Mortgage Insurance Premiums
 
          Effective June 1, 1992, the Risk-Based Monthly Automated
     Clearing House (ACH) allows approved FHA lenders to authorize
     monthly payments of periodic Risk-Based Single Family Mortgage
     Insurance Premiums directly from their bank accounts, instead of
     mailing checks.  The premium information is input via a personal
     computer and sent electronically, eliminating a paper transmittal
     (form HUD 2748).  If you are currently using the Upfront ACH
     process, you will be familiar with the Mellon Telecash format and
     screen prompts.  A new Telecash K number and Company number have
     been established for the Risk-Based Monthly Program.  Once you are
     set up on the system, a unique PIN number will be assigned to you
     as an additional level of security.
 
          The ACH process allows the lender to:
 
          -  Electronically authorize the premium payments to be made
             directly from the designated bank account;
 
          -  Control the timing of the premium payment;
 
          -  Control the accuracy of information through direct entry;
 
          -  Receive an expedited statement of account.
 
_____________________________________________________________________
                                                                 2
 
     In addition to the Risk-Based Monthly ACH process, HUD also
offers the ACH process for the Upfront Premium, including
Refinance, and Section 530 Monthly remittances.
 
     See the enclosure for participation in Risk-Based ACH.  For
further information call 202/708-4346.
 
     We look forward to having all approved FHA lenders participate
in the ACH process.
 
                               Very sincerely yours,
 
                               Arthur J. Hill
                               Assistant Secretary for Housing
                                 - Federal Housing Commissioner
 
Enclosure
 
_____________________________________________________________________
 
FAX to 202/401-1252
 
Application to Participate in the Single Family Monthly Risk-Based ACH
Process
 
         Mortgagee/Unit Number:    __________________________
 
                Mortgagee Name:    __________________________
 
                       Address:    __________________________
 
                                   __________________________
 
                                   __________________________
 
                     Bank Name:    __________________________
 
                   City, State:    __________________________
 
           Bank Account Number:    __________________________
 
             Bank's ABA Number:    __________________________
(Transit Routing (TR) - 9 digit number)
 
Two Contact Names & Numbers:
 
_____________________________      __________________________
(name - typed)                     (name - typed)
 
_____________________________      __________________________
(number)                           (number)
 
Signature and Title of Authorizing Official:
 
___________________________________________________________________________
(signature)                        (title)                   (date)
 
        U.S. Department of HUD, Single Family Insurance Operations Division
 
*U.S Government Printing Office: 1992 - 312-218/60215