www.hudclips.org 


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

March 29, 1994
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
MORTGAGEE LETTER 94-13
     TO:  ALL APPROVED MORTGAGEES
     ATTENTION:  Single Family Servicing Managers
     SUBJECT:  Providing Prompt Responses to Inquiries
 
          The Department has recently noted a pattern of some lenders
     not having adequate telephone systems.  A number of complaints
     have been received from mortgagors and the Department's Local
     Field Offices that it is often difficult, if not impossible, to
     reach mortgagee staff by telephone.
 
          Many lenders have implemented some type of automated telephone
     answering system to handle telephone calls from the public.
     Many of these systems are very effective in routing calls to the
     proper program area and help provide prompt responses to inquiries.
     Other systems seem to backlog telephone calls so there is
     a lengthy wait, or require such information as an account number,
     or part of a Social Security number to access the system and to
     be able to speak to a company representative.
 
          This mortgagee letter serves as a reminder that Handbook
     HUD 4330.1 REV-4, Administration of Insured Home Mortgages,
     Chapter 1, Paragraph 1-5, Servicer's Responsibility requires
     mortgagees to establish adequate facilities to assure that
     mortgage loan information is promptly made available to
     mortgagors and HUD staff when needed.  HUD staff does not have
     loan account numbers, therefore, mortgagees must assure that HUD
     staff have access to a representative.
 
          Whether the inability of a mortgagee's telephone system to
     allow prompt access to customer service representatives is due
     to inadequate staffing or insufficient capacity of the system,
     the results are that mortgagors cannot easily discuss their
     mortgage problems with their lender and HUD staff cannot conduct
     the business of responding to program needs (correspondence,
     mortgagor inquiries, etc.) in an effective and timely manner.
 
          Compliance with establishing adequate facilities and
     providing prompt loan information is a part of HUD on-site
     mortgagee servicing reviews.
 
_____________________________________________________________________
 
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     Mortgagees should review their systems to assure that mortgagors
     and HUD staff can get through to mortgagee staff and that prompt
     responses are being made to inquiries.
 
Sincerely yours,
 

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