www.hudclips.org 


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

November 21, 1996
 
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
 
Mortgagee Letter 96-64
 
TO: ALL LENDERS AND MORTGAGEES
 
SUBJECT: Recent Changes in Lender Approval for Title I and Title II
 
As part of HUD's ongoing effort to streamline processing, eliminate
duplication and provide better customer service, the Department is pleased
to announce the following changes pertaining to the approval of lenders to
participate in the FHA Title I or Title II programs.
 
Joint Submission of Financial Statements for FHA and Ginnie Mae
 
Those nonsupervised mortgagees approved by both the Federal Housing
Administration (FHA) and the Government National Mortgage Association
(Ginnie Mae) need no longer submit annual financial statements to both FHA
and Ginnie Mae separately.
 
Effective immediately, FHA Title II mortgagees and Ginnie Mae issuers
approved by both FHA and Ginnie Mae need to submit their annual audited
financial statements only to Ginnie Mae. The mortgagee must indicate its
Ginnie Mae and FHA ID numbers on the audit. Two copies of the audit must be
submitted to:
 
        Ginnie Mae Special Projects Group
        c/o Coopers and Lybrand
        1751 Pinnacle Drive
        McLean, VA 22102
 
The audit must continue to comply with FHA and Ginnie Mae requirements as
noted in HUD Handbook 2000.4, Mortgagee Letter 95-6 and GNMA Handbooks
5500.1 and 5500.2  (where applicable). Do not submit a copy of the audit to
FHA's Lender Approval and Recertification Division. There has been no
change regarding the amount of the annual FHA recertification fee or where
it is to be sent.
 
Mortgagees that are not also Ginnie Mae issuers must continue to submit
annual financial statements to the Lender Approval and Recertification
Division.
 
Joint FHA/Ginnie Mae Approval Form
 
The Department has designed a new joint application form for use by
institutions wishing to become approved to participate in the FHA Title I
or Title II programs or to become approved as a Ginnie Mae issuer. It is
not our intention that institutions must become Ginnie Mae issuers in order
to participate in the FHA programs. Our intention is to reduce the number
of forms lenders must submit to become approved. By incorporating the
various program requirements into one form, we eliminated six separate
forms. To apply for approval, a lender or mortgagee must submit the form,
the Supplement to Application (HUD-92001 LD for Title I applicants and
92001 D for Title II applicants) and the supporting documentation.
 
A copy of the new form is attached to this letter. The form is also
available on the HUD Homepage on the worldwide web (http://www.hud.gov). To
find the form, go to the Library section of the Homepage and click on HUD
Forms Warehouse. The Homepage contains instructions on how to download the
form. To order any quantity of forms, lenders may call 1-800-767-7468.
 
Contacting the Lender Approval and Recertification Division by Electronic
Mail
 
To be more accessible to the public, the Lender Approval and
Recertification Division has created an electronic mailbox. Lenders and
other members of the public may contact the Division by addressing
electronic mail (email) messages to:
 
HSG-Lender_Approval@HUD.GOV
 
Our intention is for this to be an alternative to the telephone for routine
inquiries, or routine inquiries requiring a written response.
 
New Address for the Lender Approval and Recertification Division
 
The Lender Approval and Recertification Division, and the Office of Lender
Activities and Program Compliance have moved. All regular mail should be
sent to the following address:
 
        U.S. Department of Housing and Urban Development
        Office of Lender Activities and Program Compliance
        451 7th Street SW
        Room B133 - P3214
        Washington, D.C. 20410
 
Overnight mail and other special deliveries should be directed to:
 
        U.S. Department of Housing and Urban Development
        Office of Lender Activities and Program Compliance
        490 L'Enfant Plaza East, SW
        Suite 3214
        Washington, D.C. 20024
 
If you have any questions or comments, please contact the Lender Approval
and Recertification Division on (202)708-3976 or send an email.
 
Sincerely yours,

Nicolas P. Retsinas
Assistant Secretary for Housing-
Federal Housing Commissioner