www.hudclips.org 


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

October 1, 1996
 
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
 
MORTGAGEE LETTER 96-55
 
TO:  ALL APPROVED MORTGAGEES
 
SUBJECT:  Participation in the Automated Clearing House Program for
          Paying Multifamily Insurance Premiums
 
     In August 1985, the Department of Housing and Urban Development
(HUD) implemented the Automated Clearing House (ACH) program.
Subsequently, in 1992 the Multifamily Insurance Operations Branch
entered into the program for the remittance of Multifamily Mortgage
Insurance Premiums.  The ACH program is designed to provide FHA approved
mortgagees the opportunity to utilize their personal computers to
electronically authorize the payment for Multifamily Mortgage Insurance
Premiums instead of sending checks and Form HUB-27032-A (Billing
Statement and Reconciliation) by mail.
 
     ACH provides mortgagees with numerous tangible benefits that may
reduce servicing costs.  Through the use of ACH, mortgagees may:
 
     -    Eliminate the handling of paper.
     -    Eliminate lost or misdirected checks.
     -    Save time in resolving errors found on billings.
     -    Timing of the premium payment can be controlled.
     -    Improve turnaround time for receipt of Statement of Accounts.
 
We view ACH as a benefit for the Department and for mortgagees.
Consequently, HUD is exploring the possibility of making ACH the sole
method for collecting the Multifamily Mortgage Insurance Premiums.  We
will publish a notice of this new requirement in the Federal Register in
the near future.  In the meantime however, HUD representatives will
begin contacting mortgagees to discuss the program and sign up
participants.
 
     Mortgagees who wish to sign up early, avoiding a last minute rush
or who require additional information and procedures, may contact
LaShond Anglin on (202)708-2022 extension 2825.
                                                                 2
 
     ACH is another example of the Department's commitment to provide
better service for our clients.
 
Sincerely yours,
 

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