www.hudclips.org U. S. Department of Housing and Urban Development Washington, D.C. 20410-8000 March 19, 1996 MORTGAGEE LETTER 96-14 TO: ALL APPROVED MORTGAGEES ATTENTION: SINGLE FAMILY SERVICING MANAGERS SUBJECT: Mandate for Electronic Data Interchange (EDI) The purpose of this mortgagee letter is to provide instructions regarding HUD's mandate for submission of Forms HUD-92068A (Monthly Delinquent Loan Report), HUD-92080 (Mortgage Record Change), and HUD-27050- A (Mortgage Insurance Termination), via Electronic Data Interchange (EDI). Additional EDI applications (such as claims) may be subject to mandate at a later date. For large volume lenders, HUD will no longer accept hard copy (paper) or magnetic tape submissions of these forms after September 30, 1996. Lower volume lenders will be phased in, in accordance with Attachment 1. However, mortgagees need not wait to begin reporting via EDI, as all three applications are currently in production. In fact, in the two years since FHA first announced this electronic commerce initiative, more than 300 mortgagees have established themselves as Trading Partners with HUD or have taken preliminary steps to join the program. Many other mortgagees have also expressed interest in EDI, but some were concerned that the technology or the process would prove to be overly burdensome, particularly for smaller mortgagees. HUD has responded to this by streamlining the process of first becoming a Trading Partner, reducing the level of technical information required to participate, and by considering the development of specialized EDI software for the creation and transmission of various reports to HUD. This software would be targeted for use by the smallest portfolio mortgagees, and the type of software that would be developed will be based on information obtained through the attached EDI Profile Survey (Attachment 2). Regardless of your company's size or whether or not you intend to utilize HUD's software, it is essential that all mortgagees that are not currently participating in HUD's EDI program complete the attached EDI Profile Survey and return it to HUD no later than May 1, 1996, to the electronic mail address listed on page 2 of the Survey. For those lenders that do not presently have the capability to use electronic mail, a fax number is also provided on page 2 of the EDI profile Survey. HUD's Trading Partner Coordinator is available to provide assistance and can be reached by calling 1-800 HUD-4EDI (i.e., 1-(800) 483-4334)). Page 2 Upon receipt of your EDI Profile Survey, HUD's Trading Partner Coordinator will contact the individual identified in your company's Survey to begin the transition to EDI. The Trading Partner Coordinator will remain available as a resource throughout that process. Sincerely yours, Nicolas P. Retsinas Assistant Secretary for Housing- Federal Housing Commissioner ATTACHMENT #1 PORTFOLIO CATEGORY CATEGORY I: (LARGEST PORTFOLIO MORTGAGEES) MORTGAGEES WITH SERVICING PORTFOLIOS EQUAL TO OR GREATER THAN 20,000 MORTGAGES; CATEGORY II: (MED/LARGE-SIZE PORTFOLIO MORTGAGEES) MORTGAGEES WITH SERVICING PORTFOLIOS EQUAL TO OR GREATER THAN 5,000 MORTGAGES, BUT LESS THAN 20,000 MORTGAGES; CATEGORY III: (MED/SMALL-SIZE PORTFOLIO MORTGAGEES) MORTGAGEES WITH SERVICING PORTFOLIOS EQUAL TO OR GREATER THAN 1,000 MORTGAGES, BUT LESS THAN 5,000 MORTGAGES; CATEGORY IV: (SMALLEST PORTFOLIO MORTGAGEES) MORTGAGEES WITH SERVICING PORTFOLIOS LESS THAN 1,000 MORTGAGES EDI MANDATE IMPLEMENTATION TIME FRAMES* PORTFOLIO FORMS HUD-92080 & HUD-27050A MUST HUD-92068A MUST BE CATEGORY BE REPORTED VIA EDI 1/ REPORTED VIA EDI EFFECTIVE FOR THE REPORTING CYCLE ENDING 2/ I 9/1/96 9/30/96 II 12/1/96 12/31/96 III 6/1/97 6/30/97 IV 12/1/97 12/31/97 (1) Reporting via EDI will be required effective the first day of the month. (2) Reporting via EDI will be required beginning with the reporting cycle ending 9/30/96. All reporting of form HUD-92068A reflects the delinquency status as of month end. All reports HUD-92068A are due to HUD within five days following the last day of each month. * HUD WILL NO LONGER ACCEPT HARD COPY (PAPER) OR MAGNETIC SUBMISSIONS AFTER THE IMPLEMENTATION DATE FOR EACH PORTFOLIO CATEGORY. ATTACHMENT 2 Mortgage Lender/Servicer EDI Profile Survey The Department of Housing and Urban Development is seeking to enroll all HUD-approved Mortgage Lenders and Servicers of FHA-insured mortgage portfolios in an Electronic Data Interchange (EDI) Program that will enable electronic submission of mortgage insurance claims, mortgage loan default reports, mortgage record changes, mortgage insurance terminations, and mortgage insurance premiums directly to HUD via EDI. Additional HUD EDI applications are also planned and mortgagees will be notified as each new application becomes available. Please complete the following survey to provide HUD with the information necessary to begin the enrollment process. Organization s Full Name and Address: ___________________________________________________________________________ Organization s Name ___________________________________________________________________________ Mailing Address ___________________________________________________________________________ City State ZIP+4 10-digit HUD Mortgagee Number: ____________________________________________ Do you have an Internet address? Yes____, it is:___________________ No____ Would you consider conducting electronic commerce via the Internet? Yes____ No____ EDI Contact: _________________________________________________________________ Name Phone Number Alternate Point of Contact:__________________________________________________ What type of computer system do you currently use to conduct business with HUD? ____ Mainframe ____ Mini-level computers ____ Department-level computers ____ Micro computers If you indicated micro computers in the previous question, please answer the following questions: (Please check all that apply.) ____ IBM (or compatible) ____ 386 Memory: ____ Apple ____ 486 ____ 2 megabyte ____ 8 megabyte ____ Pentium ____ 4 megabyte ____ 16+ megabyte ____ Other: ____________________________________________________________ Which operating systems are used? (Please check all that apply.) ____ MS-DOS ____ OS/2 ____ Macintosh ____ Windows ____ UNIX ____ Other: _______________________ ____ Windows 95 ____ Windows NT Is the application system that you use to service your mortgage portfolio for processing ____ Custom (in-house) developed? ____ Service Bureau provided? ____ Commercial Off-the-Shelf? ____ Not automated? Does your organization now have any operational EDI business applications? Yes____ No____ Do you currently use a service bureau to process your data? Yes____ No___ Please indicate who you are using, or are planning to use, for your EDI transmissions: Mortgage Activity Software Provider/ Presently Using Service Bureau EDI (Yes or No) Claims ______________________ _________________ Defaults ______________________ _________________ Mortgage Record Changes ______________________ _________________ Mortgage Insurance Terminations ______________________ _________________ If your firm uses commercial off-the-shelf software, please provide the product name, version name and complete vendor name for each package used for the following mortgage activities: Mortgage Activity Product Name Version Vendor Name/Contact Claims _______________ _________ __________________ Defaults _______________ _________ __________________ Mortgage Record Changes _______________ _________ __________________ Mortgage Insurance Terminations _______________ _________ ___________________ Comments:___________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ Mail or Fax this survey to: Department of Housing and Urban Development Headquarters James R. Beall Mailstop: AMISH 451 7th Street, SW Fax Number: (202) 755-0070 Washington, DC, 20410-3600 Internet Address: EDI@hud.gov