www.hudclips.org 


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

 
November 10, 1994
 
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
 
Mortgagee Letter 94-55
 
     TO:  ALL APPROVED MORTGAGEES
 
        SUBJECT:  Single Family Loan Production - Reduction in
                          Documentation/Paperwork for FHA-Insured Mortgages
 
                Several months ago, the Department formed a Working Group
        comprised of lenders and HUD staff to review the documentation
        that HUD is requiring to underwrite and insure mortgages.  This
        Working Group, which is led by HUD's Seattle Field Office,
        recommended the elimination of a number of documents to reduce
        the "paperwork burden" on lenders and borrowers.
 
                The Department has accepted many of the recommendations of
        the Working Group and is pleased to announce that effective
        immediately, the following documents need no longer be included
        in the insurance package when it is submitted to the local HUD
        Field Office for endorsement:
 
     Documents Eliminated from right side of HUD case binder:
 
        Request for Insurance Endorsement, form HUD-54111.  This
                form no longer needs to be completed, provided the lender
                transmits the required data elements electronically through
                CLAS (CHUMS Lender Access System).
 
        Risk Based MIP Statement of Account.  This information is
                already in our CHUMS system.
 
        Initial Uniform Residential Loan Application (URLA).  Only
                the original final URLA is required.
 
        Preliminary Title Report or Binder.  No preliminary title
                report or binder need be submitted.
 
                            2
 
     Documents Eliminated from left side of the HUD case binder:
 
        Appraisal copy.  A photocopy of the appraisal is no longer
                needed.  Continue to place the original on the right side of
                the case binder.
 
        Affirmative Fair Housing Marketing Plan (AFHMP).  Some
                lenders are including the AFHMP in the case binder.  If an
                AFHMP has been previously submitted to HUD and approved
                there is no need to include a copy in the case binder.
 
        Picture Identification.  The Department will no longer
                require the lender to provide a picture identification of
                the borrower in the case binder.  (The lender is still
                responsible for verifying the identity of the borrower.)
 
                The Department considers this only a first step in reducing
        unnecessary documentation and the Working Group is continuing to
        explore opportunities to eliminate or reduce documentation and
        paperwork.
 
                If you have any questions concerning this Mortgagee Letter,
        please contact your local HUD Office.
 
Sincerely yours,
 

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