www.hudclips.org DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, D. C. 20410 January 12, 1983 OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING - FEDERAL HOUSING COMMISSIONER Mortgagee Letter 83-1 Letter For: All Approved Mortgagees Subject: Assignment of Multifamily Mortgages Your immediate attention is directed to a growing concern relative to the increasing number of multifamily mortgage assignment elections being received by the Department of Housing and Urban Development. Both lenders and HUD have common financial interests in insured projects. High interest rates have the potential for creating negative spreads for the lender. At the same time, increasing assignments have contributed to Federal Budget problems through substantial outlays from the Insurance Funds. At a time when increasing budget deficits are at the forefront of the national attention, we urge your cooperation. The Department recognizes that there is an incentive to assign low interest rate mortgages as soon as they become eligible for insurance benefits. This is of particular concern to us, since such elections might be prevented if the mortgagee, mortgagor, and HUD attempt to develop acceptable payment arrangements to cure the financial defaults. Because of the problem of rapid assignments, please give HUD a reasonable amount of time to cure the problem before electing to assign a mortgage. In addition, we ask that you notify HUD of a delinquency of an insured mortgage immediately after the 15th day of the month in which the payment is due. Please direct the notification to the local HUD Area Office and/or Multifamily Service Office, Loan Management Branch Chief, and also to the Director of Multifamily Management Operations at HUD's Headquarters in Washington and ensure its arrival at those locations by the 20th day of the delinquency. Earlier notification will give the Department the crucial time needed to cure the default. In many cases, this will also give you and the mortgagor the time needed to plan an acceptable payment agreement. _____________________________________________________________________ 2 When making notification, please provide the following: 1. FHA Project Number 2. Project Name and Address 3. Mortgagor billing Name, address, and phone number 4. Outstanding Mortgage Balance 5. Interest Rate 6. Number of installments past due 7. Amount delinquent 8. Reason for delinquency The address of the Director of Multifamily Operations is: The Department of Housing and Urban Development Office of Multifamily Housing Management, HMH Management Operations Division, HMHM Attention: Delinquency Alert 451 7th Street, S.W. Washington, D.C. 20410 Enclosed is a list of Loan Management Branch Chiefs. The 15 day notification period has been discussed with members of the Mortgage Bankers Association of America, (Insured Project Committee-Servicing Subcommittee) with favorable response. Some of the large FHA Multifamily lenders have already agreed to the advance notification period. Together, we must strive to create a stronger economy and a healthier investment climate---a climate which will ensure reasonable regulations for mortgagees and adequate safeguards for the taxpayer's investment. By working together now, we will both reap greater benefits in the future. Your cooperation is appreciated. If you have any questions please contact Patrick McInturff at 202-755-5547. This letter has been approved by the Office of Management and Budget and assigned OMB approval No. 2502-0041. Philip Abrams Assistant Secretary for Housing-Federal Housing Commissioner Enclosure _____________________________________________________________________ HUD FIELD OFFICE CONTACTS NAME AND LOCATION OF NAME AND PHONE NO. SERVICING HUD OFFICE OF HUD CONTACT Boston Area Office Ms. Laurie Langlois Bulfinch Building 15 New Chardon Street (617) 223-4182 Boston, MA 02114 Hartford Area Office Mr. Robert Donovan One Hartford Square West Suite 204 (203) 244-2317 Hartford, CT 06106 Manchester MF Service Office Mr. James Zachos Norris Cotton Federal Bldg. 275 Chestnut St. (603) 666-7684 Manchester, NH 03103 Providence MF Service Office Mr. Christano Neves Rm. 330-John O. Pastore Federal Bldg. (401) 528-4835 Providence, RI 02903 Buffalo Area Office Mr. Charles H. Meyer, Jr. Statler Bldg., Mezzanine 107 Delaware Avenue (716) 846-5710 Buffalo, NY 11202 Caribbean Area Office Mr. Ramon Moreno Federico Deoptau Federal Bldg. U.S. Court House, Room 428 (809) 753-4351 Carlos E. Chardon Avenue Hato Rey, Puerto Rico 00918 Newark Area Office Mr. Ronald J. Santa Gateway Bldg. No. 1 Raymond Plaza (201) 645-3230 Newark, NJ 07102 New York Area Office Mr. Donald J. Foy 26 Federal Plaza New York, NY 10278 (212) 264-4975 Baltimore Area Office Mr. Kenneth Hannon Equitable Bldg. 10 N. Calvert St. (301) 962-2144 Baltimore, MD 21202 Charleston MF Service Office Acting: Ernest R Marsh Kanawha Valley Bldg. Capitol & Lee St. (304) 347-7064 Charleston, WV 25301 _____________________________________________________________________ page 2 NAME AND LOCATION OF NAME AND PHONE NO. SERVICING HUD OFFICE OF HUD CONTACT Philadelphia Area Office Mr. Joseph Mallon 625 Walnut Street Philadelphia, PA 19106 (215) 597-3409 Pittsburgh Area Office Mr. Robert G. Speicher Ft. Pitt Commons 455 Ft. Pitt Blvd. (412) 644-3431 Pittsburgh, PA 15219 Richmond Area Office Mr. William Henderson, Jr. 701 E. Franklin St. Richmond, VA 23219 (804) 771-2001 Washington D.C. Area Office Ms. Juanita Burgess Universal North Bldg. 1875 Connecticut Avenue (202) 673-5839 Washington, D.C. 20009 Atlanta Area Office Mr. William E. Beasley Richard B. Russell Fed. Bldg 75 Spring St., S.W. (404) 221-4017 Atlanta, GA 30303 Birmingham Area Office Mr. Claude J. Boone Daniel Bldg. 15 S. 20th St. Birmingham, AL 35322 (202) 254-1611 Columbia Area Office Ms. Arlena Espizito Strom Thurmond Fed. Bldg. 1835-45 Assembly Street (803) 765-5826 Columbia, SC 29201 Greensboro Area Office Ms. Florene E. Mitchell 415 N. Edgeworth Street Greensboro, NC 27401 (919) 378-5673 Jacksonville Area Office Mr. Austin D. Hurt Peninsular Plaza, 661 Riverside Avenue (904) 791-2953 Jacksonville, FL 32202 Jackson Area Office Mr. Thomas C. Smith, Jr. U.S. Federal Bldg. 100 W. Capital St. Rm. 1016 (601) 960-4719 Jackson, MS 39201 Knoxville Area Office Mr. William S. McClister 1 Northshire Bldg. 1111 Northshire Drive (615) 558-1477 Knoxville, TN 37919 _____________________________________________________________________ page 3 NAME AND LOCATION OF NAME AND PHONE NO. SERVICING HUD OFFICE OF HUD CONTACT Louisville Area Office Ms. Imogene Issacs 539 River City Mall P.O. Box 1044 (502) 582-6467 Louisville, KY 40202 Nashville MF Service Office Mr. Charles T. Barnett 1 Commerce Place Suite 1600 Nashville, TN 37219 (615) 251-5069 Chicago Area Office Mr. Vernon A. Washington One North Dearborn Chicago, IL 60602 (312) 353-9174 Cincinnati MF Service Office Mr. William Setty 550 Main Street Cincinnati, OH 45202 (513) 684-2884 Cleveland MF Service Office Mr. Garreth H. Dowlen 770 Rockwell Avenue 2nd Floor (216) 522-4032 Cleveland, OH 44114 Columbus Area Office Acting: Mr. Ferdinand Juluke 200 N. High Street Columbus, OH 43215 (614) 469-5704 Detroit Area Office Mr. Gary Levine McNamara Fed. Bldg. 477 Michigan Avenue (313) 226-4817 Detroit, MI 48226 Grand Rapids Service Office Mr. William H. Deboer 2922 Fuller Ave., N.E. Grand Rapids, MI 49505 (616) 456-2214 Indianapolis Area Office Mr. Malcolm Stockwell 151 N. Delaware St. P.0. Box 7047 (317) 269-2087 Indianapolis, IN 46207 Milwaukee Area Office Ms. Marcelle Schoeneman 744 N. Fourth Street Milwaukee, WI 53203 (414) 291-1028 Minneapolis St. Paul Area Office Mr. Howard Goldman 220 South Second Street Bridge Place Bldg. (612) 349-3095 Minneapolis, MN 55803 _____________________________________________________________________ page 4 NAME AND LOCATION OF NAME AND PHONE NO. SERVICING HUD OFFICE OF HUD CONTACT Springfield Valuation & Mr. Robert Walker Endorsement Station Lincoln Towers Plaza (217) 492-4174 524 So. Second Street, Room 600 Springfield, IL 62701 Albuquerque Service Office Mr. Allen S. Riddle 625 Truman Street, N.E. Albuquerque, NM 87110 (505) 766-3249 Dallas Area Office Mr. Edwin R. Burton 2001 Bryan Tower 4th Floor (214) 767-8394 Dallas, TX 75201 Houston MF Service Office Mr. R. Earle White Two Greenway Plaza East Suite 200 (713) 226-4352 Houston, TX 77046 Lubbock Service Office Mr. Harry Stokely, Jr. Federal Building 1205 Texas Avenue (806) 762-7275 Lubbock, TX 79408 Little Rock Area Office Mr. James E. Hicks One Union North Plaza Suite 1400 (501) 378-6148 Little Rock, AR 72201 Oklahoma City Area Office Mr. James L. Cook Murrah Federal Building 200 N.W. 5th Street (405) 231-4582 Oklahoma City, OK 73102 New Orleans Area Office Mr. Robert J. Villars 1001 Howard Plaza Tower New Orleans, LA 70113 (504) 589-6635 San Antonio Area Office Thomas F. Meadows, Jr. Washington Square Bldg. 800 Dolorosa - P.O. Box 9163 (512) 229-6830 San Antonio, TX 78285 Shreveport Service Office William G. Bonner, Jr. 50 Fannin Street New Federal Bldg., 6th Floor (318) 226-5405 Shreveport, LA 71101 _____________________________________________________________________ page 5 NAME AND LOCATION OF NAME AND PHONE NO. SERVICING HUD OFFICE OF HUD CONTACT Tulsa Service Office Mr. James Cooke State Office Building 440 S. Houston Avenue (405) 231-4582 Tulsa, OK 74127 Des Moines MF Service Station Mr. Steven Robins 210 Walnut Street Room 259 (515) 284-4770 Des Moines, IA 50309 Kansas City Area Office Mr. Vern Davis, Jr. Professional Building 1103 Grand Street (816) 374-6125 Kansas City, MO 64106 St. Louis Area Office Mr. George Demetre 270 N. Tucker Blvd. St. Louis, MO 63101 (314) 425-4777 Omaha Area Office Mr. George Vogel Univac Building 7100 West Center Road (402) 229-9428 Omaha, NE 68106 Denver Regional/Area Office Mr. Larry C. Sidebottom Executive Tower Building 1405 Curtis Street (303) 837-4721 Denver, CO 80202 Honolulu Area Office Mr. Mike Flores 300 Ala Moana Blvd. Honolulu, HI 94830 (808) 546-2137 Los Angeles Area Office Mr. Malcolm Findley 2500 Wilshire Blvd. Los Angeles, CA 90057 (213) 688-5978 Phoenix Service Office Mr. George Stensland Arizona Bank Bldg. 101 N. First Avenue (602) 261-4497 Suite 1800 Phoenix, AZ 85002 Sacramento MF Service Office Ms. Elizabeth Downing 545 Downtown Plaza P.O. Box 1978 - Suite 250 (916) 440-2334 Sacramento, CA 95809 _____________________________________________________________________ page 6 NAME AND LOCATION OF NAME AND PHONE NO. SERVICING HUD OFFICE OF HUD CONTACT San Francisco Area Office Acting: William H. Harrison One Embarcadero Center Suite 1600 San Francisco, CA 94111 (415) 556-6781 Anchorage Area Office Acting: Pat Brown 334 West Fifth Avenue Anchorage, AK 99501 (907) 271-4175 Portland Area Office Mr. Albert E. Olson Cascade Building 520 S.W. Sixth Avenue (503) 221-2788 Portland, OR 97204 Seattle Area Office Mr. George M. Mathisen 403 Arcade Plaza Bldg. 1321 Second Avenue (206) 442-0334 Seattle, WA 98101 Tucson Service Office Mr. Lawrence H. Peters 33 N. Stone Avenue Arizona Bank Bldg. Comm: (602) 792-6779 Suite 1400 Tucson, AZ 85701 Boise Service Office Mr. Albert E. Olson 419 N. Curtis Road P.O. Box 32 Comm: (503) 221-2788 Boise, ID 83705 Portland Area Office Mr. Albert E. Olson Cascade Building 520 S.W. Sixth Avenue Comm: (503) 221-2788 Portland, OR 97204 Seattle Area Office Mr. George M. Mathisen 403 Arcade Plaza Bldg. 1321 Second Avenue Comm: (206) 442-0334 Seattle, WA 98101 Spokane Service Office George M. Mathisen 746 U.S. Courthouse West 920 Riverside Avenue Comm: (206) 442-0334 Spokane, WA 99201 _____________________________________________________________________ FEDERAL NATIONAL MORTGAGE ASSOCIATION 3900 WISCONSIN AVENUE, NW, WASHINGTON, DC 20016 202 537 7900 Robert J. Mahn Senior Vice President Mortgage Operations DATE: September 27, 1982 TO: All FNMA Lenders FROM: Robert J. Mahn SUBJECT: Changes to Loan Packaging Requirements We are further streamlining our purchase procedures for whole loans by eliminating certain documentation previously requested in the loan purchase package. This change should result in a significant savings to lenders in terms of photocopy, mailing and other administrative costs. Underwriting Packages/Post-Purchase Reviews Beginning immediately, we will no longer require lenders to furnish credit and property exhibits at the time a conventional loan or a VA 2-4 family loan is submitted for purchase. Instead, we will request this documentation on an individual loan basis through our post-purchase review procedures. We will notify lenders in writing of each loan selected for review and the documentation to be submitted. Documents are to be received by us no later than 10 days from receipt of our notice. Lender Responsibilities/Quality Control System This change to our purchase procedures in no way relieves lenders of their warranties or responsibilities under our purchase programs. The actions we have taken to streamline our procedures and reduce paperwork emphasize the importance of lenders ensuring that loans meet our eligibility requirements. For this purpose, we require lenders to have an operative quality control system which covers not only conventional loan production, but that of FHA and VA loans as well. _____________________________________________________________________ All FNMA Lenders 2 A quality control system has many important functions, one of which is to verify the accuracy of the loan origination documents. This function involves the reorder of credit reports, new appraisals by a different independent appraiser and a review of the original underwriting decisions. The primary purpose of a quality control system, however, is to ensure that the loans originated meet not only the lender's standards, but those of its insurers and investors. This can be accomplished through a system which adequately defines those expectations and monitors the results on an on-going basis. Although it is not our intention to dictate a specific system to lenders, there are elements which we consider essential to a good quality control system. The attached outline includes these elements and is provided as a guideline. Lenders should review their own operations to determine the adequacy of their system in relation to these guidelines. Any questions should be directed to the FNMA regional offices. Senior Vice President - Mortgage Operations Attachment _____________________________________________________________________