www.hudclips.org 


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

July 6, 1995
 
MORTGAGEE LETTER 95-31
 
TO:  ALL APPROVED MORTGAGEES
 
SUBJECT:  Single Family Loan Production - Reduction in
                  Documentation/Paperwork
 
        The Department is pleased to announce another stage of its "Reducing
FHA Paperwork" effort.  Begun with Mortgagee Letter 94-55 and continued in
Mortgagee Letter 95-11, this endeavor will eliminate certain forms and
revise others.
 
        The Department is eliminating form HUD-54113, the
Underwriter/Mortgagee Certification.  This form is now a part of the
revised form HUD 92900-A, the Addendum to the Uniform Residential Loan
Application (the Addendum).  The certifications previously found on it are
incorporated into pages three and four of the Addendum.  By doing this,
lenders will no longer have to complete, photocopy and store a separate
form in order to certify that the loan was underwritten and closed in
accordance with the Department's rules and regulations.  There are no
changes to the Department of Veterans Affairs' part of the revised
Addendum.
 
        The Department is also eliminating the Attachment A, the form used to
compute financing concessions to determine if they exceed the six percent
limitation.  It has been consolidated into the form HUD 92900-WS, the
Mortgage Credit Analysis Worksheet (the Worksheet) and appears to the right
of the Remarks' section.  Lenders will also notice that certain items have
been removed from the form such as the borrower's age, marital status, and
the number of dependents.  Providing this information on the Worksheet is
repetitive since it is collected elsewhere.
 
        The Department has also revised the form HUD 92900-B and given it a
new name, Important Notice to Homebuyers.  The revised 92900-B
consolidated, into a single form, the Borrower's Interest Rate Disclosure
Statement (the former 92900-B), the Homeowner's Fact Sheet, and the
servicing form notifying borrowers of prepayment requirements.
Consequently, lenders no longer need to have the borrower read, sign and
date three separate disclosure forms, as well as have them photocopied and
placed in the casebinder.
 
        Lenders are encouraged to use the revised forms immediately.  However,
existing supplies may be used until they are exhausted.  Mandatory use of
these forms is January 2, 1996.
 
        For your convenience, the revised forms have been attached to this
Mortgagee Letter.  If you have any questions regarding these forms, please
contact the local HUD Office.
 
Sincerely yours,
 

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