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

February 28, 1991
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 91 - 12
    TO:  ALL APPROVED MORTGAGEES
    SUBJECT:  Single Family Loan Production - Use of the Department
                of Veterans Affairs (VA)/U.S. Department of Housing
                and Urban Development Wood Destroying Insect
                Information Report for Existing Construction,
                VA Form 26-8850/HUD Form 92053 dated April, 1983.
 
         The Department wishes to reiterate its requirement that a
    copy of VA Form 26-8850/HUD-92053 (attached) must be completed
    and included with all existing single family case binders where
    termite inspections are required.  We are aware that several wood
    destroying insect information forms are being used by pest
    control operators (PCOs) to record their findings resulting from
    inspections of single family properties.  Such forms must be
    accompanied by the VA/HUD form for FHA insured mortgages.  The
    only exceptions are as follows:
 
         1.   If a State has a wood infestation form which
              is identical to the VA/HUD Form.  If it is
              not identical, then the VA/HUD Form must be
              used in addition to or in place of the state
              form.
 
         2.   If a State mandates the use of only the state
              approved form, HUD will accept only the state
              mandated form.  In such States, Regional or
              Field Offices shall determine what areas or
              improvements, in addition to the main
              dwelling, are to be inspected by the PCOs
              during their appraisal and must make such
              information a part of the preprinted
              Valuation Condition Sheet (VC Sheet).
 
_____________________________________________________________________
                                                                  2
 
      The provisions of this Mortgagee Letter shall be effective
 for all cases in which the sales contract is signed after
 April 1, 1991.
 
      If you have any questions concerning this letter, please
 contact the Single Family Development Division on
 (202) 708-2720.
 
                          Very sincerely yours,
 
                          Arthur J. Hill
                          Acting Assistant Secretary for
                            Housing-Federal Housing Commissioner
 
Attachment
 
_____________________________________________________________________
 
                                                    VA FORM 26-8850
 
                                                    ML 91-12
 
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