U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
                                   WASHINGTON, D.C. 20410-8000
                                      November 3, 1988

OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER                               TI-398

 MEMORANDUM FOR:  ALL TITLE I LENDING INSTITUTIONS
                  Attn:  Installment Loan Department
SUBJECT:  Third Regional Service Center Established
 
     The Department has established a third Regional Service Center in
Chicago, Illinois, consolidating some of the Title I functions previously
carried out by local HUD Offices in six midwestern States.  The other two
Regional Service Centers are located in Seattle, Washington, and Albany,
New York (see TI-393 dated March 8, 1988 for a list of States served by
these other Centers).
 
     The Chicago Regional Service Center is now responsible for carrying
out Title I debt collection, compliance review and referrals, and general
lender assistance in the States of Illinois, Indiana, Michigan, Minnesota,
Ohio and Wisconsin.  Lenders who have been sending requests for HUD forms
and preclaim assistance letters to local HUD Offices in these States should
now contact the Chicago Regional Service Center at the following address:
 
          Title I Regional Service Center
          Dept. of Housing and Urban Development
          547 West Jackson Boulevard
          Chicago, Illinois 60606
          Telephone: (312) 353-3110 (HUD Forms)
                     (800) 228-4849 (Other Assistance)
 
Title I Functions Not Affected by Consolidation
 
    The following Title I functions are not affected by these geographic
consolidations of debt collection and other activities into the three
Regional Service Centers:
 
    1.    Assistance to lenders in interpreting program regulations and
          resolving issues related to loan origination and servicing is
          provided by the Title I Insurance Division at Headquarters (see
          the address and telephone number at the end of this letter).
 
    2.    Requests for prior HUD approval on any property improvement loan
          that will result in the borrower having total unpaid balances on
          such loans exceeding $17,500 are to be sent to the Mortgage
          Credit Branch at the local HUD Office.
 
    3.    Requests for appraisals on manufactured homes and lots in
          combination and on manufactured home lots without the home are to
          be sent to the Valuation Branch at the local HUD Office.  ( TI-392 
          dated January 11, 1988 describes the procedure for obtaining
          manufactured home appraisals where real estate is not involved.)
 
_____________________________________________________________________
2.
 
    4.   Requests for subordination or substitution of security, or for the
         release of any borrower or assumptor from liability under the note
         or from any lien securing the loan, are to be sent to the Title I
         Insurance Division at Headquarters (see the address and telephone
         number at the end of this letter).
 
    5.   Applications for contracts of insurance are to be sent to the
         Mortgage Credit Branch at the local HUD Office, which will then
         forward them to the Lender Approval and Recertification Division
         at Headquarters for approval.
 
    6.   Requests for expansion of the territory in which Title I loans may
         be originated are submitted to the Lender Approval and
         Recertification Division in Room 9146 at Headquarters; the
         telephone number is (202) 426-3976.
 
    7.   Requests for the transfer of insurance reserves between lenders
         are submitted to the Office of Finance and Accounting at the
         address on the Transfer of Note Report (Form HUD-27030).
 
    8.   Questions about monthly billing statements and the status of
         insurance reserves and reserve transfers should be directed to
         the Office of Finance and Accounting on (202) 755-5263.
 
    9.   Questions about the status of insurance claims should be directed
         to the Office of Finance and Accounting on (202) 755-0060.
 
For Further Information
 
      If you have questions about this letter, please write to Robert J.
Coyle, Director, Title I Insurance Division, 451 Seventh Street, S.W.,
Room 9160, Washington, D.C. 20410 or call the Division on (202) 755-6880.
 
                                    Sincerely yours,
 
                                    Thomas T. Demery
                                    Assistant Secretary