www.hudclips.org 


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

May 28, 1991
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 91-23
     TO:  ALL APPROVED MORTGAGEES
     SUBJECT:  Multifamily Mortgage Insurance Premiums
 
          The purpose of this letter is to clarify the Department's
     requirements governing:  (1) the payment of multifamily
     mortgage insurance premiums and late penalties; and (2) the
     reporting of changes in project mortgagee holders and
     servicers.
 
     PROPER REMITTANCE ADDRESSES
 
          The Multifamily Premium lock box facility has designated
     two addresses for the receipt of premium payments.  These are
     designed to accommodate the distinct processing needs of first
     class mail and overnight delivery services.  It is important
     that the proper address be used to facilitate timely processing
     and recording of payments.  Mortgagees are strongly encouraged
     to use first class mail for all their payments.
 
          Premiums forwarded through U.S. Postal First Class Mail
     services are to be addressed as shown below.
 
               Department of Housing and Urban Development
               C & S National Bank
               Post Office Box 198045
               Atlanta, GA  30384-8045
 
          Payments transmitted via Overnight Delivery Services such
     as U.S. Postal Service Express Mail, United Parcel Service,
     Purolator and other similar services cannot be delivered to a
     Post Office Box.  Use of these should be restricted to
     emergency situations because they often take longer to process
     once they are received by the lock box.  The following address
     is to be used for these special services:
 
_____________________________________________________________________
                                                              2
 
          Department of Housing and Urban Development
          Multifamily Premiums
          C & S National Bank
          6000 Feldwood Road-(3SSE)
          College Park, GA  30349
 
LATE CHARGES
 
     HUD's regulations at 24 CFR 207.252d, mandate that
"Mortgage Insurance Premiums which are paid to the Commissioner
more than 15 days after the billing date or due date, whichever
is later, shall include a late charge of 4 percent of the
amount of the payment due."   Multifamily premium billings are
normally mailed to mortgagees about 6 weeks prior to their due
date.  Therefore, late charges will typically be calculated
based on the due date rather than the billing date.  All
payments that are not received at the designated lock box
address within the allotted 15 days will be assessed the 4
percent late penalty.  Payments received at the lock box on
Saturday, Sunday or legal holidays will be recorded as received
on the next business day; this must be considered when shipping
payments in order to avoid late penalties.  LATE CHARGES WILL
BE APPLIED TO ALL PAYMENTS RECEIVED ON THE 16TH DAY OR LATER!
 
     Remittances made through the Automated Clearing House
(ACH) payment method will be credited on the day transmitted.
All restrictions cited above regarding Saturdays, Sundays and
legal holidays will apply to ACH payments.
 
REPORTING MORTGAGEE SERVICER AND HOLDER CHANGES
 
     In the event of a mortgage sale, the seller is responsible
for submitting Form HUD-92080 (Mortgage Record Change)
notifying the Department of the change in mortgage holder and
servicer, as applicable.  Responsibility for premium related
charges will shift to the purchasing mortgagee upon transfer of
the mortgage.  This includes all unpaid premiums and applicable
late fees, including late penalties that can be attributed to a
failure by the selling mortgagee to file mortgage record
changes in a timely manner.
 
_____________________________________________________________________
                                                             3
 
      Effectively immediately, Forms HUD-92080, providing
notification of multifamily mortgagee changes, are to be mailed
to:
 
          Multifamily Insurance Operations Branch
          P.O. Box 44124
          Washington, DC  20026-4124
 
As an alternative, mortgagees may FAX their forms to
(202) 619-8408.
 
     Any questions regarding this letter should be directed to
the Multifamily Insurance Operations Branch, (202) 708-2022.
 
                             Sincerely,
 
                             Arthur J. Hill
                             Assistant Secretary for
                               Housing-Federal Housing Commissioner