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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D. C. 20410

January 9, 1980
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING - FEDERAL HOUSING COMMISSIONER           IN REPLY REFER TO:
Mortgagee Letter 80-2
TO     :  ALL APPROVED MORTGAGEES
SUBJECT:  Centralization of Fee and Premium Billing
 
     The purpose of this letter is to advise you of the
Department's long range policy with respect to centralized fee
and premium billing.  The last few years have shown a dramatic
reduction in computer processing and data storage costs enabling
many mortgage banking organizations to centralize their mortgage
cost accounting operations.  In light of these developments, the
Department intends to require centralized billing of all fees and
premiums by January 1983, in conjunction with the new Mortgage
Accounting System.  The present policy of permitting branch fee
and premium billing, as set forth in Handbook 4110.2 , Mortgage
Insurance Fiscal Instructions, will be appropriately revised.
 
     If there are any institutions which will be unable to comply
with this objective by the 1983 target date, please address your
comments to James A. Schader, Office of Management, Room 9132,
HUD, 451 7th Street, S.W., Washington, D.C. 20410, by February
15, 1980, stating any objections or comments.  The contents of
this letter have also been published in the Federal Register.
 
                                   Sincerely,
 
                                   Lawrence B. Simons
                                   Assistant Secretary
 
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