www.hudclips.org 


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

 
December 9, 1994
 
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
 
Mortgagee Letter 94-58
 
TO:     ALL APPROVED MORTGAGEES
 
SUBJECT:Change in Error Processing for Single Family Mortgage
Record Changes and Terminations
 
        In an effort to provide a more timely response to mortgage
record change error resolution, the Single Family Insurance
Operations Division is implementing workflow changes that will
improve error processing and reporting.
 
        Beginning in early December 1994, transactions which cannot
be processed will no longer be written to the error suspense file
and will be returned to the mortgagee that initiated the
transaction.  The Advice of Mortgage Servicing Actions report
will indicate transactions in error as well as positive
confirmations and will be provided on a weekly basis.  This will
allow transactions in error to be corrected and resubmitted to
HUD in a timely manner.  Lender compliance with servicing
requirements will not be met until the receipt of corrected
transactions.
 
        Currently, these errors are updated to FHA's Insurance in
Force error suspense file.  They are reported back to mortgagees
on a monthly basis which causes a delay in the processing of
corrected transactions.  The current process creates cumbersome
correspondence exchanges, delays services such as homeowner
refunds and makes retrieval of source documents difficult for
lenders.
 
        If you have any questions, please contact your data quality
representative on (202) 708-1994.
 
Sincerely yours,
 

Nicolas Retsinas
Assistant Secretary for Housing-
Federal Housing Commissioner
 
Attachment
 
Error codes that will be returned for correction
 
1.      05 -    No premium paid on upfront case
2.      21 -    Termination date < endorsement date or > current date
3.      39 -    Case already terminated
4.      40 -    Act cd requires mandatory holder transfer
5.      41 -    Servicer mortgagee must be numeric
6.      42 -    Holder transfer, mortgagee type not = 6,7,8
7.      43 -    Servicer transfer mortgagee type not = 5,6
8.      44 -    Mortgagee amount must be numeric and > 0
9.      46 -    Check digit error
10.     47 -Transaction original mortgage amount not equal to
database
11.     48 -    Holder mortgagee not on IMF database
12.     50 -    Effective date prior to endorsement date
13.     52 -    Mortgagee ID invalid
14.     53 -    Mortgage amount must be 7 position numeric
15.     67 -    Termination type invalid (11-15,18-19,21-24)
16.     68 -    Termination date must be MMDDYY format
17.     80 -    State not on table file
18.     81 -    Edit error on field year
19.     82 -    Edit error on field month
20.     83 -    Edit error on field day
21.     84 -    Assumption date must be MMYY format
22.     85 -    Case number not on file
23.     91 -    Fund code error
24.     92 -    Servicer mortgagee not on IMF database
25.     A5 -    Mortgagor mailing address missing
26.     A6 -    Mortgagor name or property address missing
27.     A8 -    Case must be a maturity termination type 18
28.     A9 -    Transaction original mortgage amount not = database
29.     AD -    Case already terminated by refinance term type  22
30.     AE -    Dash missing or misplaced in case number
31.     AF -    Numeric check on case number failed
32.     AG -    Check digit invalid position 11 = X or numeric
33.     AH -    Calculated check digit does not match
34.     AJ -    Invalid conversion type
35.     AK -    Invalid disposition type
36.     BE -    Premium collected and owed discrepancy
37.     BI -    Duplicate case on database created by form 2753
38.     BM -    Case must be a netting refinance (term type 23)