www.hudclips.org 


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

August 23, 1990
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 90-31
   TO:  ALL APPROVED MORTGAGEES
   SUBJECT: Single Family Loan Production - Compliance with the Byrd
               Amendment - Clarification to Mortgagee Letter 90-13
 
        On April 26, 1990 HUD issued Mortgagee Letter 90-13 concerning
   compliance with Section 319 of Public Law 101-121, more
   commonly known as the Byrd Amendment, which implemented new
   government-wide restrictions on lobbying.  The purpose of this
   letter is to clarify the procedures that must be followed by
   lenders that originate single family FHA-insured mortgages to
   comply with the Byrd Amendment.
 
        The Byrd Amendment applies to both the borrower and the
   lender for an insured loan or a commitment to insure a loan in an
   amount exceeding $150,000.  Government regulations require the
   lender and the borrower to file a Certification (Exhibit A of this
   letter) with HUD to state whether the lender or borrower has made
   or has agreed to make any payment to influence or attempt to
   influence an officer or employee of any agency, a Member of
   Congress, an officer or employee of Congress or an employee of a
   Member of Congress in connection with that loan.
 
        If the borrower or lender has made or has agreed to make any
   payment to influence an officer or employee of any agency, Member
   of Congress, an officer or employee of Congress or an employee of
   a Member of Congress in connection with that loan, then the
   borrower or lender must complete a Disclosure Form (Exhibit B of
   this Letter).  Inasmuch as very few lenders or borrowers make
   payments to Members of Congress or the other individuals mentioned
   above in connection with an individual loan, it is not likely that
   Exhibit B will be used very often.
 
        Please keep in mind that the Byrd Amendment only applies to
   loans that exceed $150,000.  Generally, these will be 3 and 4 unit
   properties in high cost areas and many one-to-four unit properties
   in Hawaii.
 
_____________________________________________________________________
 
                                                                2
 
     Both the borrower and the lender must sign the Certification
(Exhibit A to this letter).  In the event there has been, or there
is subsequent, lobbying in connection with the transaction, the
appropriate party must file the Disclosure Form (Exhibit B to this
letter) with the HUD Field Office.  In most cases, the borrower
and lender will be signing only the Certification, so the
signatures of both borrower and lender may be combined on one
form.  The signed form must be included as part of the closing
package for all Direct Endorsement cases when submitting the
request for insurance endorsement or submitted with the
application for firm commitment for all HUD processed cases.
 
     If you have any questions concerning this letter, please
contact the Single Family Development Division in HUD Headquarters
at ( 202) 708-2700.
 
                              Very sincerely yours,
 
                              Arthur J. Hill
                              Acting Assistant Secretary for
                              Housing-Federal Housing
                              Commissioner
 
_____________________________________________________________________
 
                                                       EXHIBIT A
 
                       CERTIFICATION STATEMENT
 
                                  FOR
 
                LOAN GUARANTEES AND LOAN INSURANCE
 
     The undersigned states, to the best of his or her knowledge
and belief, that:
 
     If any funds have been paid or will be paid to any person for
influencing or attempting to influence an officer or employee of
any agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection
with this commitment providing for the United States to insure or
guarantee a loan, the undersigned shall complete and submit
Standard Form-LLL, "Disclosure Form to Report Lobbying," in
accordance with its instructions.
 
     Submission of this statement is a prerequisite for making or
entering into this transaction imposed by Section 1352, Title 31,
U.S. Code.  Any person who fails to file the required statement
shall be subject to a civil penalty of not less than $10,000 and
not more than $100,000 for each such failure.
 
Executed this _______________ date of _________________, 19___.
 
                                  By ________________________
                                    (Signature of Borrower)
 
                                  By_________________________
                                    (Signature of Co-Borrower)
 
Executed this ________________ date of _______________, 19____.
 
                                  By ________________________
                                    (Signature of Lender's
                                      Representative)
 
                                    _________________________
                                    (Typed or Printed Name)
 
                                    _________________________
                                     (Title, if any)
 
_________________________________
FHA Case Number
 
_________________________________
Property Address