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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D. C. 20410

June 16, 1981
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING - FEDERAL HOUSING COMMISSIONER             IN REPLY REFER TO:
Mortgagee Letter 81-25
TO     :     ALL HUD APPROVED MORTGAGEES
SUBJECT:     HUD-Approved Forms
 
     The purpose of this Mortgagee Letter is to emphasize the
requirement that HUD-approved forms be used in HUD mortgage insurance
programs.  Several situations involving use of unauthorized closing
documents have recently come to our attention.
 
     HUD regulations, at 24 CFR Section 203.17(a), require that a
mortgage be executed on a form approved by the Commissioner for use
in the jurisdiction in which a property is located.  If a document is
not executed on a form approved by HUD, the instrument will not be
endorsed for insurance.  In cases where an unauthorized document has
already been endorsed, the insurance contract remains valid pursuant
to Section 203(e) of the National Housing Act.
 
     If consistent use of improper documents is found in the
post-review for those mortgagees submitting certifications as per HUD
Mortgagee Letter 79-29, Single Family Loan Endorsement Procedures,
the mortgagee will be notified immediately and all future requests
for endorsement will be subject to a complete review prior to
endorsement.
 
     For further information, contact John Coonts, Director, Single
Family Development Division, Washington, D.C. 20410. Telephone
(202) 755-6720.
 
                                   Sincerely,
 
                                   Philip D. Winn
                                   Assistant Secretary
 
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