U. S. Department of Housing and Urban Development
                                 Washington, D.C. 20410-8000
                                    August 4, 1992

OFFICE OF THE ASSISTANT SECRETARY                                 TI-417
FOR HOUSING-FEDERAL HOUSING COMMISSIONER

     MEMORANDUM FOR:  ALL TITLE I LENDING INSTITUTIONS
                      Attn:  Installment Loan Department
     SUBJECT:  Reprocessing Fees for Supplemental Claims
 
           Section 201.54(c)(2) of the Title I regulations requires that
     any supplemental insurance claim be filed within six months after the
     date of payment on the original claim.  This section also permits the
     Department to charge a reprocessing fee for the review of any
     supplemental claim.
 
           The Department has determined that it will begin charging a
     reprocessing fee of $100 for each paid claim that is resubmitted for
     supplemental insurance benefits.  This fee will be charged for any
     supplemental claim received by HUD on or after October 4, 1992.  The
     Department will return without review any supplemental claim received
     on or after that date which is not accompanied by the reprocessing
     fee.
 
           Supplemental claims must be submitted under separate cover from
     other claims, and the transmittal letter should clearly state that one
     or more supplemental claims are being submitted.  Your check for the
     reprocessing fee must be made payable to "U.S. Department of HUD," and
     the original claim numbers and the word "Supplemental" should be
     indicated on the check or on an attachment.  Not more than ten
     supplemental claims should be covered by one check.  Supplemental
     claims are to be mailed to the following address:
 
                  Department of Housing and Urban Development
                  P.O. Box 44377, L'Enfant Plaza Station
                  Washington, D.C. 20026-4377
 
           If you have any questions about this letter, please write to
     Robert J. Coyle, Director, Title I Insurance Division, Room 9158,
     451 Seventh Street, S.W., Washington, D.C. 20410, or call the
     Department toll-free at 1-800-733-HOME (1-800-733-4663).
 
                                       Sincerely yours,
 
                                       Arthur J. Hill
                                       Assistant Secretary for
                                       Housing-Federal Housing Commissioner
 
                    *U.S. Government Printing Office: 1992 - 312-218/60228