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

November 29, 1996
 
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
 
MORTGAGEE LETTER 96-68
 
TO:  ALL APPROVED MORTGAGEES
 
ATTENTION:     SINGLE FAMILY SERVICING MANAGERS
 
SUBJECT:  Disposition of Assignment Requests
 
     Effective December 31, 1996, lenders will no longer have the
responsibility or the authority to process requests for mortgage
assignment. (This Mortgagee Letter supersedes instructions in
Mortgagee Letter 95-23  dated May 17, 1995, Issuance of Handbook 4330.2
Rev-2, Mortgage Assignment Processing).
 
     The former Assignment Program ended for those mortgagors who had
not applied on or before April 25, 1996 for assignment consideration.
Borrowers were ineligible for assignment consideration if they had not
applied by that date.  As was expected, during the seven months since
the termination of the program, there has been a significant reduction
in the number of lender-processed cases being referred to Field
Offices.  It is anticipated that the processing of all assignment
requests currently in the Field Offices will be completed by January
31, 1997.
 
     Therefore, lenders must forward to the local Field Offices for
processing all remaining requests for assignment consideration
received prior to April 26, 1996.  The cases should be sent
immediately.  They must reach the Field Offices no later than December
31, 1996.  The cases must be transferred regardless of whether: (1) a
decision has been made to recommend assignment acceptance under
Scenario One, (2) additional information is required to make a
decision under Scenario Two, (3) documentation has been requested but
not yet received from borrowers, (4) no decision has been made whether
the borrower meets any of the program criteria, or (5) no action has
been taken to process the assignment request.
 
     Each case must include a hard copy of all assignment-related
correspondence sent to the borrower, documentation submitted by the
borrower and any completed program worksheets and/or forms., The cases
must be mailed via registered mail or other guaranteed delivery method
to the appropriate local Field Office Director of Single Family
Housing.  Lenders must forward upon receipt all subsequent inquiries
or documentation received from borrowers associated with the
processing of an assignment request to the attention of the Chief,
Single Family Asset Management Branch.
                                                                 2
 
     Questions concerning these instructions should be directed to
Joseph McCloskey, Director, Single Family Servicing Division at (202)
708-1672.
 
Sincerely,
 

Nicolas P. Retsinas
Assistant Secretary for Housing-
Federal Housing Commissioner