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

February 28,1992
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
MORTGAGEE LETTER 92-9
    TO:  ALL APPROVED MORTGAGEES
    ATTENTION:  SERVICING MANAGERS (SINGLE FAMILY)
    SUBJECT:  Use of the Credit Alert Interactive Response System
                (CAIVRS) in Deeds-in-Lieu of foreclosure.
 
         This Mortgagee Letter establishes a new requirement for
    mortgagees to follow when pre-screening mortgagors' eligibility
    for deeds-in-lieu.  Mortgagees will now be required to use the
    Credit Alert Interactive Response System (CAIVRS) to find out if
    the mortgagor has another FHA-insured mortgage in default or if
    a claim for insurance benefits has been paid for another
    FHA-insured mortgage executed by the mortgagor.  If the system
    indicates that the mortgagor does have another FHA-insured mortgage
    in default or a claim has been filed or paid, then the case must
    be forwarded to the HUD Field Office where the property is
    located for approval to accept a deed-in-lieu.
 
                                    Very sincerely yours,
 
                                    Arthur J. Hill
                                    Assistant Secretary for Housing
                                      Federal Housing Commissioner
 
                 *U.S. Government Printing Office 1992 - 312-218/60086