www.hudclips.org U. S. Department of Housing and Urban Development Washington, D.C. 20410-8000 August 11, 1992 OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER Mortgagee Letter 92-24 TO: All Approved Mortgagees SUBJECT: Single Family Loan Production - Revised Lead-Based Paint Notification to Prospective Homebuyers As part of the Department's ongoing efforts to protect borrowers from lead poisoning, we have recently developed a revised Lead-Based Paint Notice. This revised Notice replaces the one required by paragraph 5-14(f) in HUD Handbook 4150.1 REV-1. Attached is a copy of the revised Notice lenders are to use. If the house the borrower is purchasing was built before 1978, this revised Notice must be given to the borrower on or before the date the borrower executes the sales contract. The borrower must sign and date the Notice, and provide a copy to the lender when the borrower applies for mortgage financing. If the borrower does not receive this Notice on or before the date the borrower executes the sales contract, the case should not be processed by HUD or a Direct Endorsement lender until the Notice is given to the borrower and the sales contract re-executed. For refinance transactions involving properties built before 1978, this Notice must be signed by the borrower on or before the date the borrower executes the application for the refinance, regardless of whether the mortgage being refinanced is conventional or HUD-insured. This revised Notice must be used for cases involving sales contracts or applications to refinance signed on or after October 1, 1992. A copy of this Notice, signed by the borrower, must be included in the case binder when the lender requests insurance endorsement. Because this revised Notice contains important health and safety information, the Department believes _____________________________________________________________________ 2 that it is essential that borrowers receive it and HUD will take the necessary steps to assure full compliance with the requirements of this Mortgagee Letter. Any questions regarding this letter should be directed to your local HUD Field Office. Very sincerely yours, Arthur J. Hill Assistant Secretary for Housing-Federal Housing Commissioner Attachment _____________________________________________________________________ U.S. Department of Housing and Urban Development NOTICE TO PURCHASERS OF HOUSING CONSTRUCTED BEFORE 1978. WATCH OUT FOR LEAD-BASED PAINT POISONING! If the home you intend to purchase was built before 1978, it may contain lead-based paint. About three out of every four pre-1978 buildings have lead-based paint. YOU NEED TO READ THIS NOTICE ABOUT LEAD WHAT IS LEAD POISONING? Lead poisoning means having high concentrations of lead in the body. LEAD CAN: o Cause major health problems, especially in children under 7 years old. o Damage a child's brain, nervous system, kidneys, hearing, or coordination. o Affect learning. o Cause behavior problems, blindness, and even death. o Cause problems in pregnancy and affect a baby's normal development. WHO GETS LEAD POISONING? Anyone can get it, but children under 7 are at the greatest risk, because their bodies are not fully grown and are easily damaged. The risk is worse if the child: o Lives in an older home (built/constructed before 1978, and even more so before 1960). o Does not eat regular meals (an empty stomach accepts lead more easily). o Does not eat enough foods with iron or calcium. o Has parents who work in lead-related jobs. o Has played in the same places as brothers, sisters, and friends who have been lead poisoned. (Lead poison cannot be spread from person to person. It comes from contact with lead.) Women of childbearing age are also at risk, because lead poisoning can cause miscarriages, premature births, and the poison can be passed onto their unborn babies. _____________________________________________________________________ WHERE DOES IT COME FROM? The lead hazards that children most often touch are lead dust, leaded soil, loose chips and chewable surfaces painted with lead-based paint. A child may be harmed when it puts into its mouth toys, pacifiers, or hands that have leaded soil or lead dust on them. Lead also comes from: o Moving parts of windows and doors that can make lead dust and chips. o Lead-based paint on windows, doors, wood trim, walls and cabinets in kitchens and bathrooms, on porches, stairs, railings, fire escapes and lamp posts. o Soil next to exterior of buildings that have been painted with lead-based paint and leaded gasoline dust in soil near busy streets. o Drinking water (pipes and solder). o Parents who may bring lead dust home from work on skin, clothes, and hair. o Colored newsprint and car batteries. o Highly glazed pottery and cookware from other countries. o Removing old paint when refinishing furniture. In recent years some uses of lead in products that could cause lead poisoning have been reduced or banned. This is true for lead in gasoline, lead in solder used in water pipes, and lead in paint. Still, a great deal of lead remains in and around older homes, and lead-based paint and accompanying lead dust are seen as the major sources. _____________________________________________________________________ HOW DO I KNOW IF MY CHILD IS AFFECTED? Is your child: o cranky? o unable to concentrate? o vomiting? o hyperactive? o tired? o playing with children o unwilling to eat or play? who have these o complaining of stomach symptoms? aches or headaches? These can be signs of lead poisoning. However, your children might not show these signs and yet be poisoned; only your clinic or Doctor can test for sure. WHAT CAN I DO ABOUT IT? Your child should first be tested for lead in the blood between six months and one year old. Ask the clinic or your doctor to do it during a regular checkup. Your doctor will tell you how often you should have your child tested after that. A small amount of lead in the blood may not make your child seem very sick, but it can affect how well he or she can learn. If your child does have high amounts of lead in the blood, you should seek treatment and have your home tested for lead-based paint and lead dust. HOW DO I KNOW IF MY HOME HAS LEAD-BASED PAINT? The HUD inspection does not determine whether a home actually has lead-based paint. It only identifies whether there is defective paint in a home that might have lead-based paint. Therefore, the only way you can know for sure is to have the home tested by a qualified firm or laboratory. Both the interior and exterior should be tested. You should contact you local health or environmental office for help. WHAT DO I DO IF MY HOME DOES HAVE LEAD? Do not try to get rid of lead-based paint yourself, you could make things worse for you and your family. If your home contains lead-based paint, contact a company that specializes in lead-based paint abatement. Have professionals do the job correctly and safely. This may cost thousands of dollars, depending on the amount of lead-based paint and lead dust found in your home, but it will also protect you and your children from the effects of lead poisoning. In the meantime, there are things you can do immediately to protect your child: _____________________________________________________________________ o Keep your child away from paint chips and dust. o Wet-mop floors and wipe down surfaces often, especially where the floors and walls meet. Be sure to clean the space where the window sash rests on the sill. Keeping the floor clear of paint chips, dust and dirt is easy and very important. Do not sweep or vacuum lead-based paint chips or lead dust with an ordinary vacuum cleaner. Lead dust is so fine it will pass through a vacuum cleaner bag and spread into the air you breathe. o Make sure your children wash their hands frequently and always before eating. o Wash toys, teething rings, and pacifiers frequently. WILL HUD INSURE A MORTGAGE LOAN ON A HOME WITH LEAD-BASED PAINT? HUD will insure a mortgage on a house even if it has lead-based paint. If you purchase a property with lead-based paint, HUD will not remove it. You will have to pay for the cost of removal yourself. ACKNOWLEDGEMENT I acknowledge that I have received and read a copy of this Notice before signing the sales contract to purchase my property. _________________ _________________________________________ Date Signature(s) *U.S. Government Printing Office: 1992 - 312-218/60240