www.hudclips.org 


U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D. C. 20410-8000

November 8, 1985
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 85-25
TO:  All Approved Mortgagees
SUBJECT:  Implementing wire transfers of multifamily claims
            payable in cash of $5,000 or more
 
     The Department of Housing and Urban Development and the
Department of the Treasury are ready to use electronic funds
transfers starting November 4, 1985, to pay multifamily claims
payable in cash.  If the claim is payable in cash, payments of
$5,000 or more will be made through the Treasury Financial
Communication System (TFCS).  This will improve the efficiency of
Federal financial management and also benefit mortgagees.
 
     The TFCS provides on-line access to the Federal Reserve
Communications System (FRCS) enabling payments to mortgagees to be
made to financial institutions that have access to the FRCS.  The
payment can also be made to financial institutions that do not
have access to the FRCS through correspondent financial
institutions or Federal Banks.
 
     The TFCS payment method will eliminate mail and processing
time associated with payment by check.  Instead of waiting for a
check payment to arrive in the mail, payment will be received
through the financial institution on the actual payment due date.
This is a more secure and reliable method of making and receiving
payment.  Information about the invoice(s) being paid will still
be received as each TFCS payment message will contain invoice
information and the account number at the financial institution.
 
    In order to make payment by TFCS to mortgagees, the attached
payment information form will be sent to mortgagees or their
servicers with the Multifamily Insurance Benefits Claims Package.
The form will also be sent on outstanding cases in which the
package has already been sent.  For the TFCS payment method to be
used, the form must be completed and returned as instructed.
 
_____________________________________________________________________
 
                                                       2
 
    If you have any questions or need additional information
regarding this matter, please feel free to contact Eugene Morroni
on (202) 755-7523.
 
    Thank you for your cooperation and support of FHA programs.
 
                              Sincerely,
 
                              Janet Hale
                              General Deputy Assistant
                                Secretary For Housing-
                                Federal Housing Commissioner
 
Attachment
_____________________________________________________________________
 
                                      OMB Number:  1510-0050
                                      Expiration Date:  9/30/86
 
                   Payment Information Form
            Treasury Financial Communications System
 
     The information requested on this form concerning your
financial institution should be available through your company's
Treasurer or financial institution.
 
     If your financial institution has access to the Federal
Reserve Communications System, please only complete items 1-9 and
14.  If your financial institution does not have access to the
Federal Reserve Communications System, please complete all items
except item 7.
 
1. Name of Company: ________________________________________
 
2. Address:         ________________________________________
                    ________________________________________
                    ________________________________________
 
3. Contact Person:  ________________________________________
 
4. Phone Number:    Area Code (   ) ________________________
 
5. Name of Financial
       Institution:  _______________________________________
 
6.  Address of
    Financial
      Institution: ______________________________________
 
7.  Financial institution's 9-digit ABA identifying number for
    routing transfer of funds:  _ _ _ _ _ _ _ _ (Complete only if
    your financial institution has access to the Federal Reserve
    Communications System).
 
8.  Telegraphic abbreviation of financial institution: __________
 
9.  Account number at your financial institution to be credited
    with the funds: ______________
 
10. Name of the correspondent financial institution your financial
    institution receives electronic funds transfer messages
    through, if it does not have access to the Federal Reserve
    Communications System: ________________
 
_____________________________________________________________________
 
11. Address of Correspondent
      Financial Institution: _________________________________
                             _________________________________
                             _________________________________
 
12. Correspondent financial institution 9-digit ABA identifying
    number for routing transfer of funds: _ _ _ _ _ _ _ _ _.
 
13. Telegraphic abbreviation of correspondent financial
    institution: _______________________________________
 
14. Signature and title of person completing this form:
 
    __________________   ________________________   ______________
    Signature            Title                      Date
 
    Comments: ____________________________________________
              ____________________________________________
              ____________________________________________
              ____________________________________________
 
    Mail to:
 
                                                  GPO 920-072
 
U.S. Department of Housing                 Postage and Fees Paid
and Urban Development                      Department of Housing
                                           and Urban Development
Washington, D.C. 20410                     HUD-401
 
Official Business
Penalty for Private Use, $300
 
_____________________________________________________________________