www.hudclips.org 


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

July 29, 1994
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 94-37
     TO:  ALL APPROVED MORTGAGEES
     SUBJECT:  Single Family Loan Production - Release of CHUMS
                 Enhancements
 
          This Mortgagee Letter is to inform you that recent changes have
     been made to our CHUMS system so that lenders and HUD can more easily
     track specific types of mortgage products.
 
     I.   Until now, lenders using CLAS could not specify at the time of
          FHA case number assignment that the mortgage would be an
          Adjustable Rate Mortgage (ARM).  Lenders can now identify ARMs
          when requesting a case number through CLAS by entering the
          following ADP Codes:
 
          ADP CODE       SECTION OF ACT                  PROGRAM
          ________       ______________                  _______
 
            729          203(b) - Mutual Mortgage        ARM
            788          248 - Indian Lands              203(b)/248/ARM
            730          203(k) - Rehab                  203(k) ARM
            731          234(c) - Condominium            234(c)/ARM
 
     II.  New ADP Codes have been established in CHUMS to identify certain
          specialized mortgage products, including Growing Equity Mortgages
          (GEM) and Graduated Payment Mortgages (GPM) on Indian lands and
          certain mortgages to be insured under Section 203(k) using the
          Escrow Commitment process or where the property is located in an
          older declining neighborhood (Section 223(e)).  Lenders must
          identify these products by using the New ADP Code and entering it
          on the Form HUD-54111, Request for Insurance Endorsement Under
          the Direct Endorsement Program, for the following mortgages:
 
_____________________________________________________________________
                                                                 2
 
           NEW
          ADP CODE   SECTION OF ACT      PROGRAM
          ________   ______________      _______
 
            707      203(k) - Rehab.     203(k) Escrow Commitment
            802      203(k) - Rehab.     203(k)/223(e) Older Declining Area
            782      248 - Indian Resv.  203(b)/248/245(a)/GEM
            787      248 - Indian Resv.  203(b)/248/245(a)/GPM
            788      248 - Indian Resv.  203(b)/248/ARM
 
     If you have any questions regarding these enhancements, please contact
your local HUD office.
 
Sincerely yours,
 

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