www.hudclips.org 


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

April 17, 1996
 
MORTGAGEE LETTER 96-19
 
TO:  ALL APPROVED MORTGAGEES
 
SUBJECT:  Lockbox Closes for Section 530 and Risk-Based Monthly
           Premiums
 
  Effective April 30, 1996, the lockbox for the remittance of periodic mortgage
insurance premiums (also called Section 530 premiums and Risk-Based premiums)
closes --therefore it is MANDATORY for mortgagees to remit their Section 530
and Risk-Based Monthly Premium transactions through ACH.  If you are not
already using ACH, we urge you to sign up as soon as possible by calling the
ACH Outreach Team at (703) 845-4991.
 
  Mortgagees who will be remitting their 530 Premium payments through ACH for
the first time must use the new windows-based software package called HUD
Mortgage Premium Connection (HUDMPC).  For mortgagees who are already using
ACH, we encourage you to obtain the new user-friendly software package.
 
  HUDMPC offers a variety of benefits aimed specifically at enhancing
mortgagees' ability to remit premium payments to HUD via the ACH system.
These include:
 
              Timely reporting of deposits, which improves audits and
               reconcilement control
              A user-friendly Windows-based system
              Comprehensive on-line help
              Periodic software enhancements that can be downloaded on-line
               to every user
              Upfront edits on entry fields to prevent errors
 
     HUDMPC is available free of charge through the ACH Outreach Team at
(703) 845-4991.  Questions regarding this Mortgagee Letter may be directed
through the Internet to:  sfpremiums@hud.gov
 
Sincerely yours,
 

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