www.hudclips.org 


U. S. Department of Housing and Urban Development
Washington, D.C. 20410-8000

October 28, 1993
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
MORTGAGEE LETTER  93-37
     TO:  ALL APPROVED MORTGAGEES
     ATTENTION:  SERVICING MANAGERS (SINGLE FAMILY)
     SUBJECT:  Single Family Loan Servicing Fees and Charges After
                 Endorsement - Charges to mortgagors
 
          This Mortgagee Letter is in response to a number of
     mortgagee inquiries, and provides mortgagees with additional
     servicing fees the Department of Housing and Urban Development
     (HUD) has determined as allowable for a mortgagee to charge a
     mortgagor.  This information is in addition to the guidelines
     currently found in Handbook 4330.1  Rev-4, Administration of
     Insured Home Mortgages.
 
          The following services with established fees are considered
     reasonable and customary for all sections of the country.  The
     Department has established the number of times a service can be
     provided at no charge to the mortgagor.  After the established
     number of times has been exhausted, each time a service is
     performed, the cost can be charged to the mortgagor.
 
          1.   Providing a copy of the mortgage or deed of trust:  if
               the copy is a duplicate of what had already been
               provided to the mortgagor, a maximum fee of $10 is
               allowable.
 
          2.   Providing a copy of the mortgage note:  if the copy is
               a duplicate of what has already been provided to the
               mortgagor, a maximum fee of $10 is allowable.
 
          3.   Providing a copy of the settlement statement, gift
               letters and other documents:  a maximum fee of $10 is
               allowable.
 
          4.   Providing a new amortization schedule other than the
               schedule provided at closing:  a maximum fee of $15 is
               allowable.
 
          5.   Incorporating a borrower's name change into the
               servicer's loan system:  since this service is considered
               a routine servicing function, no fee is approved.
 
          6.   Providing payoff statements by facsimile (upon request
               of mortgagor):  a maximum fee of $5 is allowable.
 
_____________________________________________________________________
 
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           7.  Providing payoff statements (other than the initial
               request):  no charge may be made for the first two such
               statements provided per calendar year; the mortgagee
               may charge $10 for providing each additional statement
               requested.
 
           8.  Providing replacement coupon books:  a maximum fee of
               $5 is allowable.
 
           9.  Re-analyzing escrow accounts and providing new coupon
               books:  since these are normal servicing functions no
               fee is allowable.
 
          10.  Providing a payment history to the mortgagor (other
               than the current year and one prior year):  a maximum
               fee of $5 is allowable.
 
          11.  Verifying the mortgage to prospective creditor:  This
               covers requests from other lenders to verify the status
               of an existing loan (typically in connection with a
               refinance application).  A $20 fee is allowed as long
               as the mortgagor has given the new lender a written
               authorization for the release of the information to the
               new lender and for the fee.
 
          12.  Providing duplicate year-end statements:  a maximum fee
               of $5 is allowable.
 
          13.  Processing and/or reprocessing of checks returned as
               uncollectible:  if a State has a set fee, a mortgagee
               may charge up to the maximum amount; otherwise, the
               maximum allowable fee is established by HUD Regional
               Offices.
 
          The Department will continue to allow the HUD Regional and
     Field Offices to assume the responsibility of setting the fees
     for providing partial releases of security because of the
     possible differences in the cost of these actions in various
     jurisdictions.
 
          If you have questions regarding this Mortgagee Letter, you
     may contact the Single Family Loan Management Branch in the local
     HUD Field Office.
 
Sincerely yours,
 

Nicolas P. Retsinas
Assistant Secretary for Housing
- Federal Housing Commissioner
 
*U.S. G.P.O.:1993-301-054:80226