www.hudclips.org U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, D. C. 20410-8000 July 31, 1987 OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER Mortgagee Letter 87-23 TO: ALL APPROVED MORTGAGEES SUBJECT: Replacement Mortgage Insurance Certificates This letter addresses omissions, abbreviations, and errors on Mortgage Insurance Certificates (MIC) printed by HUD's Computerized Homes Underwriting Management System (CHUMS). The MIC is an important legal document which should be as accurate as possible. However, its primary function is to identify the loan which was insured. Certain information on the MIC must be free of errors to ensure that we can identify the loan and process a claim for insurance benefits. Other, less critical, data may contain minor errors without affecting the insurance coverage. The items that must be accurate are: the FHA case number, Section of the Act ADP code (which identifies the FHA program), mortgage amount, interest rate, first payment date, maturity date, amortization plan (GPM or GEM plan), living units, mortgagor social security number, and mortgagee ID. Except for minor discrepancies discussed below, the mortgagor name and property address must also be accurate. Errors in these items should be brought to the attention of the Mortgage Credit Branch of the HUD Field Office that insured the loan so that both the MIC and the cause of the errors can be corrected. The original MIC must be returned when you request a correction. Where there is an error in the FHA case number, the Field Office will have to retrieve the loan file from storage before issuing a replacement MIC. Unfortunately, retrieving a loan file can take several weeks. To expedite other types of corrections, we will issue a corrected MIC when you send copies of pertinent documents or certifications to the Mortgage Credit Branch, along with the original MIC. A certification is acceptable for changes to the ADP code, first payment date, maturity date, amortization plan, living units, mortgagor social security number, mortgagor name, or mortgagee ID. _____________________________________________________________________ 2 For corrections to the mortgage amount or interest rate, send a copy of the note along with the original MIC. If the MIC significantly misquotes the property address, send a copy of either the appraisal, the conditional commitment, or the VA CRV; send a copy of the HUD application form, HUD-92900, on a no appraisal refinance. The following are examples of what we consider significant errors in the address: misquoting the house number -- 912 for 913; misquoting the street -- 12th for 15th or Warren for Warrenton; misquoting the direction -- SE for SW; or misquoting the type of street -- ST for PKY. When the name on the MIC differs slightly from the name on the note and mortgage, it is not necessary to obtain a corrected MIC. We will not issue a replacement MIC for minor misspellings; abbreviation, omission or errors in the middle name or initial; or omission of co-mortgagors. If you feel compelled to correct these types of discrepancies, feel free to do so. Please send a photocopy of the corrected MIC, with your changes circled, to the Mortgage Credit Branch. Errors in the program ID, loan-to-value ratio, borrower type and minor misspellings of the street name will be handled in the same way. By minor misspellings, we mean obvious errors where there is no doubt about the street identified. Errors involving transposed letters or an omitted or extraneous letter may be corrected by you -- for example: Bellview or Bellleview for Belleview, Engelwood for Englewood. GNMA is in agreement with this letter and concurs with this policy on corrections. To give you a handy reference, I have enclosed a summary of how the various errors will be handled, a list of the abbreviations we use for various street types, and charts of the amortization plan codes, borrower type codes, commonly used ADP codes, and program ID codes. If you have questions, phone (202) 426-7212. Sincerely yours, Thomas T. Demery Assistant Secretary Enclosures _____________________________________________________________________ ERROR IN THE FOLLOWING ITEMS REQUIRE CORRECTED MIC FROM HUD FHA CASE NUMBER ADP CODE AMORTIZATION PLAN (GPM OR GEM PLAN CODE) LIVING UNITS MORTGAGOR NAME (EXCEPT FOR MINOR MISSPELLING OR TO ADD CO- MORTGAGOR(S)) MORTGAGOR SOCIAL SECURITY NUMBER CO-MORTGAGOR SOCIAL SECURITY NUMBER MORTGAGE AMOUNT INTEREST RATE MONTHLY PAYMENT (P&I) (ONLY IF ERROR IS MORE THAN $1.00) MATURITY DATE FIRST PAYMENT DATE ADDRESS OF PROPERTY (EXCEPT FOR MINOR MISSPELLINGS OF THE STREET NAME) MORTGAGEE NAME AND ID ERRORS IN THE FOLLOWING ITEMS MAY BE CORRECTED BY THE MORTGAGEE, SEND PHOTOCOPY OF CORRECTED MIC TO HUD OFFICE PROGRAM ID LTV RATIO BORROWER TYPE (INVESTOR, OCCUPANT, ETC.) MORTGAGOR NAME (MINOR MISSPELLINGS ONLY) CO-MORTGAGOR NAME PROPERTY ADDRESS (MINOR MISSPELLING OF STREET NAME ONLY) Should you have any questions concerning this matter, please contact the Mortgage Credit Section of the local HUD Office. _____________________________________________________________________ 2 STREET TYPES Alley ALY Oval OVAL Arcade ARC Overpass OVER Avenue or AVE Park PARK Avenida Parkway PKY Boulevard BLVD Pass PASS Branch BR Path PATH Bridge BRG Pike PIKE Bypass BYP Place PL Calle C Plaza PLZ Causeway CSWY Point PT Center CTR Ramp RAMP Circle CIR Road RD Common COMM Row ROW Court CT Rue RUE Cove CV Skyway SKWY Cresent CRES Square SQ Crossing XING Street ST Drive DR Terrace TER Expressway EXPY Throughway THWY Freeway FWY Trafficway TFWY Gardens GDNS Trail TRL Highway HWY Tunnel TUNL Lane LN Turnpike TPKE Loop LOOP Underpass UNP Mall MALL Walk WALK Manor MNR Wall WALL News NEWS Way WAY Motorway MTWY AMORTIZATION PLAN CODES FOR GRADUATED PAYMENT MORTGAGES (GPMs) (Sections 245(a) and (b)) A Annual increase of 2.5 percent for 5 years B Annual increase of 5.O percent for 5 years C Annual increase of 7.5 percent for 5 years D Annual increase of 2.0 percent for 10 years E Annual increase of 3.0 percent for 10 years F Annual increase of 4.9 percent for 10 years AMORTIZATION PLAN CODES FOR GROWING EQUITY MORTGAGES (GEMs) (Section 245(a)) L Annual increase of 1 percent M Annual increase of 2 percent N Annual increase of 3 percent O Annual increase of 4 percent P Annual increase of 5 percent BORROWER TYPE 1=occupant 2=landlord 3=builder 4=operative builder 5=escrow commitment