www.hudclips.org 


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

December 19, 1995
MORTGAGEE LETTER 95-58
TO:  ALL APPROVED MORTGAGEES
 
ATTENTION:  SERVICING MANAGERS (SINGLE FAMILY)
 
SUBJECT:  Destruction of Malden Mills  (Massachusetts)
 
     On December 11, 1995, Malden Mills, a very large textile
factory located in Methuen, Massachusetts, was destroyed by fire.
Malden Mills was the primary employer in the area.  This
Mortgagee Letter is to advise you of actions taken by the
Department, and actions mortgagees can take, to provide relief to
affected borrowers with FHA-insured mortgages.  Affected
borrowers are those individuals who were employed by Malden Mills
on December 11, 1995.
 
     Moratorium on Foreclosures.  A moratorium on foreclosures is
in effect for a 90-day period from the date of this Mortgagee
Letter.  This moratorium applies to the initiation of foreclosure
AND to foreclosures already in process.
 
     Servicing Actions.  The Department strongly recommends the
following servicing actions:
 
-    Special written forbearances which can result in reduced
     payments for up to nine months, or, special forbearances up
     to 18 months duration if approval is granted by the local
     HUD Office;
 
-    Waiving all late charges beginning with the December 1995
     installment;
 
-    Suspension of reporting delinquencies to credit bureaus;
 
-    Refinancing.
 
     Questions pertaining to this Mortgagee Letter should be
directed to the Single Family Asset Management Branch of the
Department's Massachusetts State Office, at:
 
     Department of Housing and Urban Development
     Single Family Asset Management Branch
     10 Causeway Street, Room 375
     Boston, MA  02222-1092
 
     The telephone number of the office is (617) 565-5321.  Thank
you for your cooperation in this matter.
 
Sincerely yours,
 

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