www.hudclips.org U. S. Department of Housing and Urban Development Washington, D.C. 20410-8000 May 23, 1995 OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER Mortgagee Letter 95-24 TO: ALL APPROVED MORTGAGEES SUBJECT: Single Family Loan Production - Release of CHUMS Additions This Mortgagee Letter is to inform you that recent additions have been made to the Home Mortgage ADP Code Chart. It is important to identify the Section of the Act on the MIC by the correct ADP code. The ADP code identifies the insuring section and the applicable HUD insurance fund; indicates an assistance payment contract, if any; identifies cases where the lender has the option under its contract of mortgage insurance to receive benefits in cash; and indicates which mortgages do not require payment of Upfront Mortgage Insurance Premium (UFMIP). The lender must show the HUD case number including the Section of the Act ADP code on the note and the security instrument (mortgage or deed of trust). The ADP code must be the same on these documents as on the Firm Commitment (Form HUD-92900.4) or Direct Endorsement (DE) approval (Form HUD-92900-A). Documents do not need to be redrawn to correct the case number or ADP code. The attached Home Mortgage ADP Code Chart replaces the one in Appendix IV of Handbook 4000.2 REV-2. Changes to the ADP Code Chart include 203(k) Escrow Commitment, 203(k) Energy Efficient Mortgages, 203(k)/223(e) Mortgages, 203(k) Hawaiian Home Lands, as well as additions to existing ADP codes that currently allow for DE processing. Effective immediately, please use the ADP codes in the attached chart. If you have any questions regarding these changes and additions, please contact your local HUD office. Sincerely yours, Nicolas P. Retsinas Assistant Secretary for Housing - Federal Housing Commissioner Attachment Home Mortgage ADP Code Chart ___________________________________________________________________________ Section of the Act Description ___________________________________________________________________________ 203/(b) MUTUAL MORTGAGE 203/(b) FNMA Direct Financing 203/(b) Adjustable Rate Mortgage (ARM) 203/(b) 223(e) Mortgage 203/(b) Hawaiian Homelands (HHL) 203/(b) Hawaiian Homelands-ARM (HHL/ARM) 203/(b) Indian Lands (L) 203/(b) Indian Lands-ARM (IL/ARM) 203/(b) Indian Lands-(Salamanca, NY) (IL) 203(b)/238(c) Military Impact Area (MIA) 203(b)/238(c)/245(a) MIA/Grad.Payment Mortgage (MIA/GPM) 203(b)/238(c)1245(b) MIA/Alternate GPM (MIA/GPM) 203(b)/244 Coinsurance (COI) 203(b)/244/245(a) Coinsurance/GPM (COI/GPM) 203(b)/244/245(a) Coinsurance/GPM/Int.Buy-Down (COI/GPM/IBD) 203(b)/244/245(a) Coins/GPM/Grow.Equity Mtg. (COI/GPM/GEM) 203(b)/244/245(b) Coinsurance/Alternate GPM (COI/GPM) 203(b)/245(a) Graduated payment Mortgage (GPM) 203(b)/245(a) Grad.Pymt.Mtg./Grow.Equ.Mtg. (GPM/GEM) 203(b)/245(a) Grad.Pymt.Mtg./Int.Buy-Down (GPM/IBD) 203(b)/245(a) Grad.Pymt.Mtg./Ind.Lands (GPM/IL) 203(b)/245(a) Grad.Pymt.Mtg./Ind.Lands/GEM (GPM/GEM/IL) 203(b)/245(a) Grad.Pymt.Mtg./Hawaiian Hmlands (GPM/HHL) 203(b)/245(b) Alternate Grad.Pymt.Mtg. (GPM) 203(k) IMPOVEMENTS/First Lien 203(k) Second Lien 203(k) Adjustable Rate Mortgage (ARM) 203(k) 203(k) Escrow Commitment 203(k) 203(k) Energy Efficiency Mortgage (EEM) 203(k)/223(e) 223(e) Mortgage 203(k)/247 Rehab/HHL (HHL) 203(k)/248 Rehab/Ind.Lands (IL) 203(k)/245(a) Graduated payment Mortgage (GPM/GEM) 203(n) COOPERATE-Individual Unit 203(n)/245(a) Grad.Pymt.Mtg/Grow.Equi.Mtg. (GPM/GEM) 213 COOPERATIVE-Sales-Type Rel. 220 URBAN RENEWAL 220(h) Improvements 221(d)(2) LOW COST 221(h) Rehabilitation/Mkt.Rate(MR) 221(h) Rehab/Below Mkt.Rate(BMR) 221(i) Condominium Conversion(MR) 221(i) Condominium Conversion(BMR) 221(238(c) Military Impact Area (MIA) 222 SERVICEMEN 222 FNMA/Direct Financing 222/238(c) Military Impact Area (MIA) 233(a)(1) EXPERIMENTAL 233(a)(2) EXPERIMENTAL 233(a)(1)/237/221(h) Credit Risk 233(a)(1)/237/221(h) Credit Risk/Rehab(MR) 233(a)(1)/237/221(i) Credit Risk/Rehab(BMR) 233(a)(1)/237/221(i) Credit Risk/Condo Conv(MR) 234(c) Credit Risk/Condo Conv(BMR) 234(c) CONDOMINIUM 234(c) Adjustable Rate Mtg. (ARM) 234(c)/238(c)/245(a) Mil.Imp.Ar/Grad.Pymt.Mtg. (MIA/GPM) 234(c)/238(c)/245(b) Mil.Imp.Ar/Alt.Grad.Pymt.Mtg. (MIA/GPM) 234(c)/244 Coinsurance (COI) 234(c)/244/245(a) Coinsurance/GPM/GEM (COI/GPM/GEM) 234(c)/244(a) Grad.Payment Mtg. (GPM) 234(c)/244(a) Grad.Pymt.Mtg./Grow.Equ.Mtg. (GPM/GEM) 234(c)/244(b) Alternate Grad.Pymt.Mtg. (GPM) 235(i) REV HOMEOWNERSHIP ASSISTANCE 235(i) REV Special Allocation No.1 235(i) REV Recap/Spec.Alloc.No.1 235(i) REV Recap/Other than Sp.Alloc.No.1 235(i) REV Ten-Year Subsidy Mortgage 235(i) REV/238(c) Military Impact Area (MIA) 235(r) Refinance of 235(i) 237 CREDIT RISK 237/221(h) Rehabilitation(MR) 237/221(h) Rehabilitation(BMR) ___________________________________________________________________________ 1 (1 of 2) Home Mortgage ADP Code Chart ___________________________________________________________________________ Section/1 Section/2 Section/3 Section Section of the of the of the FHA/4 of the Act of the Act ADP Act ADP Act ADP Insurance Act ADP Code if Code for Code for Fund Code Pursuant VA-CRV Direct to 223(e) Cases Endorsement ___________________________________________________________________________ 203/(b) 203 303 503 703 MMI 203/(b) 250 550 MMI 203/(b) 229 529 729 MMI 203/(b) 392 792 SRI 203/(b) 259 759 GI 203/(b) 280 780 GI 203/(b) 283 583 783 GI 203/(b) 288 588 788 GI 203/(b) 291 SRI 203(b)/238(c) 274 374 574 774 SRI 203(b)/238(c)/245(a) 276 576 776 SRI 203(b)/238(c)/245(b) 268 568 SRI 203(b)/244 244 544 MMI 203(b)/244/245(a) 272 572 MMI 203(b)/244/245(a) 264 564 MMI 203(b)/244/245(a) 243 543 MMI 203(b)/244/245(b) 267 567 MMI 203(b)/245(a) 270 570 770 MMI 203(b)/245(a) 241 341 541 741 MMI 203(b)/245(a) 263 563 763 MMI 203(b)/245(a) 287 587 787 GI 203(b)/245(a) 282 582 782 GI 203(b)/245(a) 293 GI 203(b)/245(b) 261 561 761 MMI 203(k) 202 302 702 GI 203(k) 253 353 553 GI 203(k) 230 730 GI 203(k) 207 707 GI 203(k) 207 307 507 807 GI 203(k)/223(e) 202 702 GI 203(k)/247 108 808 GI 203(k)/248 101 801 GI 203(k)/245(a) 254 754 GI 203(n) 260 360 560 MMI 203(n)/245(a) 247 547 MMI 213 213 313 513 GI 220 220 320 520 720 GI 220(h) 219 519 719 GI 221(d)(2) 221 321 521 721 GI 221(h) 224## GI 221(h) 223 GI 221(i) 205## GI 221(i) 204 504 GI 221(238(c) 273 373 573 773 SRI 222 222 322 522 722 GI 222 251 551 GI 222/238(c) 278 378 578 778 SRI 233(a)(1) 233 GI 233(a)(2) 206 SRI 233(a)(1)/237/221(h) 210 310 510 GI 233(a)(1)/237/221(h) 215## GI 233(a)(1)/237/221(i) 214 GI 233(a)(1)/237/221(i) 228## GI 234(c) 227 GI 234(c) 234 334 534 734 GI 234(c) 231 531 731 GI 234(c)/238(c)/245(a) 277 577 777 SRI 234(c)/238(c)/245(b) 269 569 SRI 234(c)/244 294 GI 234(c)/244/245(a) 245 GI 234(c)/244(a) 271 571 771 GI 234(c)/244(a) 242 342 542 742 GI 234(c)/244(b) 262 562 762 GI 235(i) REV 265 SRI 235(i) REV 255 SRI 235(i) REV 256 SRI 235(i) REV 266 366 566 SRI 235(i) REV 246 346 546 SRI 235(i) REV/238(c) 275 SRI 235(r) 155 755 SRI 237 237 SRI 237/221(h) 239## SRI 237/221(h) 238 SRI ___________________________________________________________________________ 1 (2 of 2) ___________________________________________________________________________ Service Branch Codes for Section 222 Mortgages (Section of the Act Codes 222,322,522,251,551,278,378,578,288,388,588) Code Service Branch 4 Coast Guard 8 National Oceanic and Atmospheric Administration ___________________________________________________________________________ Program Identification Codes to Identify Special Programs (Codes also apply when insurance is pursuant to Section 223(e), VA-CRV and Direct Endorsement Cases.) ___________________________________________________________________________ Code Program Explanation 01 Section 203(b)(9) -Housing for the elderly. 02 Section 203(h) -Disaster housing. 03 Section 203(i) and 222 -Low cost housing in suburban area. 04 Section 203(i) -Farm homes on 5 or more acres. 05 -Reserved for inactive program. 06 -Reserved for inactive program. 07 All home mortgage transactions pursuant to section 223(a) involving public housing properties sold by Federal, State, or local governments or agencies thereof. 08 All home mortgage and home improvement loan transactions involving properties located in redevelopment or urban renewal areas. 09 Section 809 -Cases not guaranteed by the military. (Code 00 will be applicable for guaranteed cases.) 10 Section 203(b)(2)and 234(c) -Housing for veterans. 11 Section 809 -Special veteran provision, guaranteed. 12 Section 809 -Special veteran provision, not guaranteed. 13 Section 220(d)(3) -Special veteran provision. 14 Section 203,220,and 809 -Veteran in urban renewal area. 15 -Veteran in model city area. 16 -Veteran in model city area in urban renewal area. 17 -Veteran in periphery of model city area. 18 -Veteran in periphery of model city area in urban renewal area. 19 All Home mortgage,home -Located in model city area. 20 Improvement and fee -Located in model city area in urban renewal area. 21 Simple title loan -Located in periphery of model city area. 22 Transactions -Located in periphery of model city area in urban renewal area. 23 Section 235(i)& -Family unit in condominium. 24 Section 235(i) REV -Family unit in condominium in urban renewal area. 25 -Family unit in condominium in model city area. 26 -Family unit in condominium in model city area in urban renewal area. 27 -Family unit in condominium in periphery of model city area. 28 -Family unit in condominium in periphery of model city area in urban renewal area. 29 Section 235(i)REV -Family unit in a cooperative project. 30 Section 234(c) -Resale of a conventionally financed unit-veteran. 31 Section 234(c) -Resale of a conventionally financed unit-non-veteran. 35 Section 235(i)& 235(i)REV -Cases originated by Department of Agriculture. 36 All home mortgage transactions involving construction/perm properties. 40 All home mortgage -Secretary-held sale-substantial sections rehabilitation (in any area not specifically indicted by Codes 41-45). 41 -Secretary-held sale-substantial rehabilitation in urban renewal area. 42 -Secretary-held sale-substantial rehabilitation in model city area. 43 -Secretary-held sale-substantial rehabilitation in model city area in urban renewal area. 44 -Secretary-held sale-substantial rehabilitation in periphery of model city area. 45 -Secretary-held sale-substantial rehabilitation in periphery of model city area in urban renewal area. 46 -Indian claims area. 48 Section 203(b),203(b)-ARM, -Indian Reservations (Obsolete. 203(b)/245(a),203(k), "ADP Section Codes" now apply) 203(k)-ARM,203(k)/245(a) 50 Section 203(b),203(k), -Solar Energy Dwelling for Veterans. 51 203(n),233,244,245 & 809 -Solar Energy Dwelling for non-veterans. 52 All home mortgage -Interest Buy-Down provision. 53 Sections -State-purchase property mortgages -formerly Secretary-held. 60 -Subject to Second Trust. 65 All home mortgage sections -Shared Equity mortgages. except 222 and 235. 70 Section 245(a) -Growing Equity Mortgages (Obsolete. "ADP Section Codes" now apply). 77 All home mortgage sections -Manufactured Homes. 88 Section 203(b) -Operative Builder Firm Commitment. 90 Sections 203(b),203(b)-ARM, 203(b)/245(a)-GPM 230(b)/245-GPM/GEM 00 All cases not in program codes show above. ___________________________________________________________________________ 2 ___________________________________________________________________________ Section of the Act Description ___________________________________________________________________________ 237/221(i) Condominium Conv.(MR) 237/221(i) Condominium Conv.(BMR) 240 FEE SIMPLE TITLE 255 HOME EQUITY CONV.MTGS.(HECM)Assgn/Fixed 255 Home Equity Conv.Mtgs.-Assgn/(ARM) 255 Home Equity Conv.Mtgs.-Shared Prem/Fixed 255 Home Equity Conv.Mtgs.-Shared Prem/(ARM) 255 Home Equity Conv.Mtgs.-Shared Appr/Fixed 255 Home Equity Conv.Mtgs.-Shared Appr/(ARM) Other Sections-Military Impact Area (MIA) All MMI (with Coins.)-ARM (COI/ARM) All GI (with Coins.)-ARM (COI/ARM) All MMI Sections - 3% Downpayment Program (3%DPMT) All GI Sections - 3% Downpayment Program (3%DPMT) All MMI Sections (except Coins. & 245(a))-IBD (IBD) All MMI Sections (with Coins., excl. 245(a))-IBD (COI/IBD) All GI Sections-IBD (IBD) All SRI Sections-IBD (IBD) ___________________________________________________________________________ The Following Codes are Inactive - DO NOT Use for Orignations: ___________________________________________________________________________ 203(b) Accelerated Processing 203(b) Military Impact Areas (MIA) 203(b) Negotiated Interest Rate (NIR) 203(b) NIR/Delegated Processing (DP) 203(b) Delegated Processing (DP) 203(b)/244 Coinsurance/NIR (COI/NIR) 203(b)/245(a) Grad.Pymt.Mtg./Del.Proc. (GPM/DP) 203(b)/245(b) Alt.Grad.Pymt.Mtg./Del.Proc. (GPM/DP) 203(m) Seasonal Housing 233(a)(1)/235(i) Homeownership Assistance 233(a)(1)/235(j) Assistance/Rehab. 233(a)(1)/237/235(j) Credit Risk/Homeownership Assistance 233(a)(1)/237/235(j) Credit Risk/Assistance/Rehab 233(c) Delegated Processing (DP) 235(i) Homeownership Assistance 235(i)REV Delegated Processing (DP) 235(j)(4) Homeownership Assist/Rehab 237/235(i) Homeownership Assistance 237/235(j) Assistance/Rehab 809 Armed Forces 810 Armed Forces Other MMI Sections - Delegated Processing (DP) Other GI Sections - Delegated Processing (DP) ___________________________________________________________________________ 3 (1 of 2) ___________________________________________________________________________ Section/1 Section/2 Section/3 Section Section of the of the of the FHA/4 of the Act of the Act ADP Act ADP Act ADP Insurance Act ADP Code if Code for Code for Fund Code Pursuant VA-CRV Direct to 223(e) Cases Endorsement ___________________________________________________________________________ 237/221(i) 226## SRI 237/221(i) 225 SRI 240 240 540 740 GI 255 911 GI 255 912 GI 255 913 GI 255 914 GI 255 915 GI 255 916 GI Other Sections 279 379 579 779 SRI -Military Impact Area All MMI (with Coins.) 232 MMI -ARM All GI (with Coins.) 236 GI -ARM All MMI Sections - 3% 248 348 548 748 MMI Downpayment Program All GI Sections - 3% 249 549 749 GI Downpayment Program All MMI Sections 296 596 796 MMI (except Coins. & 245(a))-IBD All MMI Sections (with 299 599 799 MMI Coins., excl. 245(a)) -IBD All GI Sections-IBD 297 597 797 GI All SRI Sections-IBD 298 398 598 SRI ___________________________________________________________________________ The Following Codes are Inactive - DO NOT Use for Orignations: ___________________________________________________________________________ 203(b) 103 MMI 203(b) 218 318 SRI 203(b) 252 552 752 MMI 203(b) 257 557 MMI 203(b) 284 384 584 MMI 203(b)/244 258 558 MMI 203(b)/245(a) 286 586 MMI 203(b)/245(b) 281 581 MMI 203(m) 200 500 MMI 233(a)(1)/235(i) 208 308 508 GI 233(a)(1)/235(j) 209 309 509 GI 233(a)(1)/237/235(j) 211 311 511 GI 233(a)(1)/237/235(j) 212 312 512 GI 233(c) 295 395 595 GI 235(i) 235 335 535 SRI 235(i)REV 285 385 585 SRI 235(j)(4) 216 316 516 SRI 237/235(i) 201 301 501 SRI 237/235(j) 217 317 517 SRI 809 809 GI 810 810 GI Other MMI Sections 289 589 MMI - Delegated Processing Other GI Sections 290 590 GI - Delegated Processing ___________________________________________________________________________ Footnotes: 1 All mortgages insured pursuant to Section 223(e) are obligations of the Special Risk Insurance Fund. 2 Veterans Administration Certificate of Reasonable Value (VA-CRV). 3 Under the Direct Endorsement Program, the mortgagee assumes responsibility for the obligation of the mortgage loan without prior HUD review. 4 FHA Insurance Funds: MMI - Mutual Mortgage Insurance; GI - General Insurance; SRI - Special Risk Insurance. ## Field Offices shall not use these codes. ___________________________________________________________________________ 3 (2 of 2) ___________________________________________________________________________ Type of Construction Codes Code Explanation 01 Proposed construction 02 Substantial Rehabilitation 03 Existing Construction Not Previously Occupied 04 Other Existing (including Package Public Offering Sales of Secretary-Held Properties) 05 CAP Proposed Construction 06 Military Acquisition Sold (Privately Financed Sales and Direct Sales to GNMA or FNMA) 07 CAP Existing Construction Not Previously Occupied 08 Other Existing CAP Construction 09 Secretary-Held Property Sold (Privately Financed Sales and Direct Sales to GNMA or FNMA) ___________________________________________________________________________ Number of Living Units Enter the number of living units shown on the application for commitment. This will be from 01 to 04 units for all home mortgage sections, except section 203 pursuant to section 223(e) (01 to 08 units) and section 220 (01 to 11 units). ___________________________________________________________________________ Fee Codes Code Explanation 80 No Fee Due - All applications on existing or proposed construction cases except VA certificate of reasonable value cases. 81 All applications on existing or proposed construction cases involving a VA certificate of reasonable value. 4