www.hudclips.org U. S. Department of Housing and Urban Development Washington, D.C. 20410-8000 September 9, 1996 MORTGAGEE LETTER 96-49 TO: ALL APPROVED MORTGAGEES ATTENTION: SINGLE FAMILY SERVICING MANAGERS SUBJECT: Single Family Default Monitoring System (SFDMS) Status Code Changes The purpose of this Mortgagee Letter is to introduce several changes in the reporting requirements for Form HUD-92068A (Monthly Delinquent Loan Report). Additional status codes are being added to reflect several of the Department's new Loss Mitigation initiatives. In conjunction with these changes, HUD is adopting the status codes defined for Transaction Set 264 (TS264) as a means to assist mortgagees which must periodically report this same information to various investors, insurers and guarantors. New status codes are being added to close the information gap that exists between the time a mortgagee notifies HUD that an account has become 90 days delinquent and the date the mortgagee notified HUD that foreclosure had been initiated. The additional codes will provide mortgagees a means to identify all proactive steps that are being taken to assist the mortgagor in curing the delinquency such as forbearance, partial claim, loan modification or refinance. The mortgagee will now also have the means to identify issues which are outside its control, such as government seizure, that have delayed or otherwise restricted loss mitigation efforts. HUD will be ready to accept the new status codes effective with the reporting cycle ending December 31, 1996. As such, mortgagees reporting via hard copy (paper) must begin providing the revised status codes as of that date. Mortgagees reporting via Electronic Data Interchange (EDI) or magnetic tape must begin using the new codes effective with the reporting cycle ending March 31, 1997. This will allow mortgagees and their respective systems support adequate time to make the necessary system changes. Page 2 The mandate to begin reporting via EDI will not change (see Mortgagee Letter 96-14 dated March 19, 1996). Although HUD will begin accepting the new codes effective with the reporting cycle ending December 31, 1996, HUD will not require the new codes from those mortgagees reporting via EDI (or magnetic tape) until the reporting cycle ending March 31, 1997. The Form HUD-92068A will be reprinted at a later date to identify the status code changes, but may continue to be used in its current version until the forms are reprinted. This should not be much of an issue, because all but the smallest portfolio mortgagees shall be reporting via EDI as of the reporting cycle ending June 30, 1997. Attachment 1 provides a listing of the previous status codes as well as the new codes being added. Because of the change from a one character field to a two character field (for block 16a on Form HUD-92068A), the keypunch instructions are also changed. The revised keypunch instructions are provided in Attachment 2. If you have questions regarding the proper reporting of delinquent FHA-insured mortgages, contact your local HUD Field Office. Sincerely yours, Nicolas P. Retsinas Assistant Secretary for Housing- Federal Housing Commissioner Attachments Attachment 1 GUIDANCE FOR USING SFDMS STATUS CODES USE THE FOLLOWING CODES TO REPORT ACTIVE ACCOUNTS: PREVIOUS NEW STATUS STATUS DEFINITION GUIDANCE FOR USAGE CODE CODE A 42 Delinquent Use to advise that an account has become 90 or more days delinquent. 09 Forbearance Use when the mortgagee has provided forbearance and the payments have been reduced or suspended. 12 Repayment Use when the mortgagee has provided forbearance and the borrower is required to make a minimum of full regular mortgage payments. 26 Refinance Use to advise that action has begun to refinance the delinquent account. (Successful completion of this action will be reported separately as code 13, payment in full.) 28 Modification Use to advise that action has begun to modify the existing mortgage to bring the account current. (Successful completion of this action will be reported separately as code 20, reinstated by mortgagor who retains ownership.) 32 Military Use when forbearance is Indulgence offered to the mortgagor as provided in the Soldiers and Sailors Act. 10 Preclaim Use when the mortgagor is eligible for HUD's Partial Claim and the required documentation is being prepared. PREVIOUS NEW STATUS STATUS DEFINITION GUIDANCE FOR USAGE CODE CODE 41 Supplementa Use when the a subsequent 1 Preclaim Partial Claim has been submitted to HUD. (HUD will provide guidance as to the number of partial claims and total amount that may be claimed.) --- (Reinstatement as a result of the payment of the Partial Claim must be reported separately as code 20, reinstated by mortgagor who retains ownership.) p 15 Pre- Use when the mortgagor has foreclosure been accepted into the Pre- Acceptance Foreclosure Sale Program Plan Available C 44 Deed-in- Use to advise that the Lieu necessary action to accept a Started deed-in-lieu of foreclosure has begun B 43 Foreclosure Use to advise that Started foreclosure has started. *(For TS 264 mapping purposes, 43 was previously defined in the HUD EDI Implementation Guide as the First Legal Action to Commence Foreclosure - although others in the mortgage banking industry defined 43 as the referral to foreclosing attorney) 68 First Legal Use to advise that the first Action to public legal action to Commence commence foreclosure has Foreclosure occurred. D 45 Foreclosure Use to advise that Completed foreclosure has been completed. F 47 Deed in Use to advise that a deed-in- Lieu lieu of foreclosure was Completed completed. 24 Government Use to advise that the Seizure government (usually Department of Justice-DOJ) has seized possession a property securing an FHA- insured mortgage. All action by the mortgagee is on hold pending the disposition of the seizure. USE THE FOLLOWING CODES TO REPORT DELINQUENCY CURES - NO FURTHER REPORTING REQUIRED PREVIOUS NEW STATUS STATUS DEFINITION GUIDANCE FOR USAGE CODE CODE M 13 Paid in Use to advise that the Full mortgage has been paid in full. J 14 Current Use to advise that the (HUD account has been paid to less defines as than 90 days delinquent. paid to (Full reinstatements will be less than noted by either code 20 or 90 days 21). delinquent) K 20 Reinstated Use to advise that the by account was reinstated by the Mortgagor mortgagor who retains who retains ownership. ownership L 21 Reinstated Use to advise that the by account was reinstated by an Assumpter assumptor. N 22 Servicing Use to advise that the Transferred Servicing was transferred or or sold to sold to another mortgagee. another Mortgagee X 25 Cancel Use to cancel an account previously reported in error. 30 Third Party Use to advise that a third Sale party purchased the property at foreclosure. No claim will be filed. USE THE FOLLOWING CODES TO REPORT CLOSURE OF THE ACCOUNTS - NO FURTHER REPORTING REQUIRED PREVIOUS NEW STATUS STATUS DEFINITION GUIDANCE FOR USAGE CODE CODE S 17 Pre- Use to advise that a Pre- foreclosure Foreclosure Sale was Sale completed. (A Pre-Foreclosure Completed Sale claim will be submitted.) E 46 Property Use to advise that the Conveyed to property was conveyed to HUD. Insurer (A Conveyance claim will be submitted.) G 48 Claim Use to advise that a third without party purchased the property Conveyance at foreclosure where HUD of Title authorized a Claim Without Conveyance of Title (CWCOT). (A CWCOT claim will be submitted.) H 49 Assignment Use to advise that an Completed Assignment to HUD has been completed. (An Assignment claim will be submitted.) Attachment 2 U.S. Department of Housing and Urban Development KEYPUNCH/VERIFY INSTRUCTIONS Page 1 of 4 F42 Consolidated Single Family Statistical System Single Family Default Monitoring Data Source Document(s): Form HUD-92068-A (6/93) Instructions: Document Form HUD-92068-A (6/93) contains keypunch data for individual default cases. All data are contained in the top section of the form. Use trailing blanks in Alpha/Numeric fields. Punch Data Fields Key Points Verify (Cols.) (Cols.) 1- 30 Mortgagee Name Box 1 Alpha/Numeric 1- 30 Left justify 31- 50 Contact Person Last Name Box 3a Last Name of Contact 31- 50 Person Alpha/Numeric Left justify 51- 80 Mortgagee Street Address Box 2a Number and Street 51- 80 Alpha/Numeric Left justify 81- 90 Contact Person First NameBox 3b First Name 81- 90 Alpha/Numeric Left justify 91-111 Servicing Area Box 4a Principal HUD 91-111 Servicing Office, City Alpha/Numeric Left justify 112-130 Mortgagee City Box 2b City Alpha/Numeric 112-130 Left justify 131-132 Mortgagee State Box 2c State Alpha/Numeric 131-132* 133-141 Mortgagee Zip Code Box 2d Zip Code 133-141 Alpha/Numeric-Left justify 142-151 Contact Telephone Number Box 3c Telephone Numeric 142-151 152-153 Servicing Area State Box 4b State Alpha/Numeric 152-153 154-162 Servicing Zip Code Box 4c Zip Code 154-162 Alpha/Numeric-Left justify 163-164 Mortgagee Status Box 5 Alpha/Numeric 163-164 U.S. Department of Housing and Urban Development KEYPUNCH/VERIFY INSTRUCTIONS Page 2 of 4 F42 Consolidated Single Family Statistical System Single Family Default Monitoring System Source Document(s): Form HUD-92068-A (6/93) Instructions: (Refer to Page 1) Punch Data Fields Key Points Verify (Cols.) (Cols.) 165-170 Period Ending Date Box 6 Period Ending Date 165-170 Date format YYMMDD 171-180 Mortgagee ID Number Box 7 Ten-Digit Mortgagee 171-180** No. Assigned by HUD Alpha/Numeric 181-200 Mortgage Loan Number Box 8 Mortgagee Loan Number181-200 Alpha/Numeric include hyphens Left justify 201-209 FHA Case Number Box 9 FHA Case Number 201-209*** Alpha/Numeric Left justify 210-212 ADP Code Box 10 ADP Code (3 digits) 210-212 Alpha/Numeric 213-232 Mortgagor's Last Name Box 11a Mortgagor's Last 213-232 Name Alpha/Numeric Left justify 233-234 Mortgagor's Initials Box 11b Initials (lst,Mid) 233-234 Alpha/Numeric 235-254 Co-Mortgagor's Last Name Box 12a Co-Mortgagor's Last235-254 Name Alpha/Numeric Left justify 255-256 Co-Mortgagor's Initials Box 12b Initials (lst,Mid) 255-256 Alpha/Numeric 257-261 Property Street Number Box 13a Property Street No.257-261 Alpha/Numeric Leave blank if no number given U.S. Department of Housing and Urban Development KEYPUNCH/VERIFY INSTRUCTIONS Page 3 of 4 F42 Consolidated Single Family Statistical System Single Family Default Monitoring System Source Document(s): Form HUD-92068-A (6/93) Instructions: (Refer to Page 1) Punch Data Fields Key Points Verify (Cols.) (Cols.) 262-275 Property Street Name Box 13b Property Street 262-275 Name Alpha/Numeric Left justify 276-284 Mortgagor's SSN Box 11c Mortgagor's Soc. 276-284 Sec. No. Alpha/Numeric No Hyphens Leave blank if no number given 285-293 Co-Mortgagor's SSN Box 12c Co-Mortgagor's 285-293 Soc. Sec. No.-Alpha Numeric No Hyphens Leave blank if no number given 294-311 Property City Name Box 13c City 294-311 Alpha/Numeric 312-313 Property State Name Box 13d State 312-313* Alpha/Numeric 314-318 Property Zip Code Box 13e Zip Alpha/Numeric314-318 319-324 Due Date of First PaymentBox 14 Due Date lst Pmt. 319-324 Date format YYMMDD 325-330 Oldest Unpaid Box 15 Date Oldest Unpd 325-330 Installment Installment Date YYMMDD 331-332 Status of Mortgage Box 16a Mort. Status 331-332 Alpha/Numeric 333-338 Status Date Box 16b Mort. Status Date 333-338 Date format YYMMDD U.S. Department of Housing and Urban Development KEYPUNCH/VERIFY INSTRUCTIONS Page 4 of 4 F42 Consolidated Single Family Statistical System Single Family Default Monitoring System Source Document(s): Form HUD-92068-A (6/93) Instructions: (Refer to Page 1) Punch Data Fields Key Points Verify (Cols.) (Cols.) 339-339 Occupancy Status Box 17 Occup. Status 339-339 Alpha/Numeric Codes 1, 2, 3, 4, or 5 340-340 Case in Bankruptcy Box 18a Bkrptcy Status 340-340 Numeric Codes 1, 2, 3, or 4 Leave blank if not filled 341-346 Bankruptcy Date Box 18b Bankruptcy Date 341-346 Date format YYMMDD Leave blank if not filled 347-352 Unpaid Balance Box 19 Unpaid Balance 347-352 Numeric only/Dollars only 353-355 Reason for Default Box 20 Cause of Default 353-355 Alpha/Numeric 356-360 Insert "SFDMS" 356-360 * Correct State code must be used. See attached list. ** If blank, do not key record. *** If blank, do not key record.