www.hudclips.org 


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

September 19, 1994
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 94-42
     TO:  ALL APPROVED MORTGAGEES
     SUBJECT:  Single Family Loan Production - Termination of the Single
                 Family Coinsurance Program
 
          This Mortgagee Letter is to advise you of the termination of the
     Single Family Coinsurance Program.  The final rule was published in
     the Federal Register on August 5, 1994.  The Department will coinsure
     only those loans with Mortgage Credit Analysis Worksheets, Form HUD
     92900-WS, that are approved, signed and dated, prior to December 29,
     1994.
 
          After extensive analysis, the Department found the coinsurance
     program to be one whose usefulness and utilization by lenders is
     outweighed by the demands it makes on limited departmental resources.
     Since the inception of this program in early 1976, the Department has
     endorsed very few coinsured single family loans.  Contributing to this
     lack of lender interest in the program has been the advent of Direct
     Endorsement which has blunted many of the benefits attributable to the
     coinsurance program, especially the delegation of processing to the
     lenders.
 
          If you should have any further questions concerning the
     termination of this program, please contact your local HUD Office.
 
Sincerely yours,
 

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