www.hudclips.org U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, D. C. 20410-8000 November 9,1990 OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER MORTGAGEE LETTER 90-39 TO: ALL APPROVED MORTGAGEES SUBJECT: Disclosure and Verification of Social Security Numbers (SSNs) for the Section 235 Program Section 165 of the Housing and Community Development Act of 1987 (Section 165(a), P.L. 100-242), authorizes HUD to require certain individuals, and members of their households six years of age and older, to disclose and verify their SSN. The Final Rule on Disclosure and Verification of the SSN with respect to the Section 235 Program became effective March 30, 1990 (Published in the Federal Register at 55 FR 11904). The requirement will enable HUD to use SSNs to help decrease the incidence of fraud, waste and abuse in the Section 235 program. The disclosure and verification of the SSN is an explicit condition of continued eligibility for Section 235 assistance. Therefore, these requirements must be met whenever a Recertification of Family Income and Composition is processed. In an effort to fully apprise homeowners of the new requirement, and the importance of disclosing and verifying the SSN, lenders must advise homeowners in writing of the requirement. This may be accomplished at the same time the Form HUD-93101 (Recertification of Family Income and Composition) is sent to the homeowner. I. Disclosure and Verification of SSNs A. All homeowners (and members of their households six years of age and older) are required to disclose and verify complete and accurate SSNs. Verification of the SSN is a one-time requirement. For example, if the homeowner provides the lender with documentation to verify the SSN at the time of an annual recertification (October 1990), it is not necessary to provide the documentation to verify the SSN for any subsequent recertifications. However, disclosure of the SSN must be provided at the time of each recertification. Lenders must advise homeowners of the one-time verification requirement in writing. _____________________________________________________________________ 2 II. Documentation Requirements A. Documentation is required for each SSN disclosed. To document the SSN, all individuals should furnish a copy of a valid Social Security Card (SSC) issued by the Social Security Administration of the Department of Health and Human Services. (The SSN has nine digits separated by hyphens as follows: 000-00-0000.) See Attachment 1. B. In those cases where the individual is unable to provide a copy of a valid SSC, lenders may accept copies of any two of the following documents which would contain the SSN and the individual's identity: 1. A drivers license (See Attachment 2). 2. An identification card issued by a Federal, state or local agency. 3. An identification card issued by an employer or trade union. 4. Earnings statements or payroll stubs. 5. Bank statements or personal checks. 6. Internal Revenue Service (IRS) Form 1099. 7. Unemployment benefit letter. 8. Retirement benefit letter. 9. Life insurance policies. 10. Court records: such as marriage and divorce judgments or bankruptcy records. 11. Other documents that the lender determines adequate evidence of a valid SSN. C. Individuals who have applied for legalization under the Immigration Reform and Control Act of 1986 (IRCA) are an exception to the documentation requirements stated above. These individuals have a SSN to disclose but will not have the copy of the SSC as documentation. Acceptable documentation from those individuals is a letter from the Immigration and Naturalization Service (INS) assigning them the SSN. _____________________________________________________________________ 3 NOTE: IRCA applicants generally applied for a SSC at the time they applied for amnesty. The Social Security Administration assigned these individuals a SSN and issued a SSC. However, this card was forwarded to INS and was placed in the applicant's file. INS sends a letter to IRCA applicants informing them that a SSN has been assigned and they may use it until they are granted temporary lawful resident status. D. Unacceptable Documentation Lenders may not accept documents that: 1. Are produced or completed by individuals, such as business cards, self completed wallet identification cards, or other store purchased cards. (People often purchase a plastic or metal SSC from companies or mail order firms.) 2. Have little or no importance, such as club membership or library cards. NOTE: Lenders have the discretion to include similar documents in this category. E. Invalid or False Documents A lender may reject documents that are invalid or false. To be considered invalid or false, the document, must fall under one of the following categories: 1. Invalid Social Security Numbers - Some individuals use invalid numbers taken from sample cards put in new wallets or from similar advertising. These "pocketbook" numbers are invalid and are listed in Attachment 3. 2. False Documents - False identification documents can be either counterfeit, altered, or impostors: a. Counterfeit - A forgery of a genuine document or a copy of a document which may appear authentic but is not legally issued. _____________________________________________________________________ 4 b. Altered - A genuine document that has had some identification changed to match the bearer. Most often the name, photograph, address or age and physical description are changed on altered documents. c. Imposter - A genuine document obtained under false pretenses, or a blank genuine document stolen from the issuing agency. F. Procedures for Rejecting SSNs or Documentation When a lender suspects that it has been given an invalid or false document to evidence the SSN, it should notify the homeowner and require an explanation or additional proof of the SSN. If the additional documentation is questionable, the lender may require the SSC be provided, or a duplicate card obtained if the original is not available. If the additional documentation does not satisfy the lender that it is valid or genuine, the following actions must be taken: 1. The assistance payments contract must be suspended effective the 1st day of the first month after receipt of the additional documentation. 2. The assistance payments contract cannot be reinstated until the validity of the SSN can be verified. The lender must advise the homeowner in writing of the action. 3. If the validity of the SSN is verified, the assistance payments contract is to be reinstated effective the 1st day of the month following receipt of the documentation. Certifications A. If individuals disclose their SSN, but are unable to meet the verification requirement, a written certification must be executed by the individual to this effect. The certification should state the individual's name, SSN, and that he/she is unable to submit the documentation. The certification must be signed, and dated by each individual who does not have the documentation. If the individual is under 18 years of age, the certification must be executed by his/her parent or guardian. _____________________________________________________________________ 5 B. The individual then has 60 days from the date of certification to obtain necessary documentation to verify the SSN disclosed. If an individual is at least 62 years of age, the lender may at its discretion, extend the period up to an additional 60 days (or 120 days after certification). C . The lender may refer the homeowner to the local Social Security Office so that he/she may complete and submit Form SS-5,"Application for Social Security Card," to request a duplicate Social Security Card. D. If any individual has not been assigned a SSN, a certification executed by that individual is required. The certification should state the individual's name, and that he/she has not been assigned a SSN. The individual should then date and sign the certification. If the individual is under 18 years of age, the certification must be executed by his/her parent or guardian. This certification is required annually. No further action is needed. A lender cannot require an individual to apply for a SSN. IV. Criminal Violations A. Since the SSN was considered an administrative tool for many years, it was not considered necessary to have a penalty provision covering the fraudulent application for or use of a SSN. However, as time passed and the SSN came into broader use, the need to protect it became more apparent. Penalty provisions were added to the Social Security Act and are contained in 42 U.S.C. 408(f), (g) or (h). Violations of these statutes include: 1. Providing false information to obtain a SSN. 2. Using a SSN based on false information to get a federally financed benefit. 3. Using someone else's SSN. _____________________________________________________________________ 6 4. Misusing a SSN for any reason. 5. Making, possessing, buying, or selling counterfeit Social Security cards. If documentation obtained indicates that the homeowner knowingly intended to deceive the lender, referral of the information should be forwarded to the Office of Inspector General for the Department of Health and Human Services DHHS), or to local prosecutors as a case of false statements. The Office of Inspector General (DHHS) may be contacted by toll free hotline: 1-800-368-5779 or by contacting a Regional Inspector General for investigation as follows: Regions States Serviced Telephone No. I. Boston MA, VT, NH, ME, RI, CT (617) 565-2660 II. New York NY, NJ, PR, VI (212) 264-1691 III. Philadelphia PA, MD, DE, WV, VA, DC (215) 596-6796 IV. Atlanta KY, GA, NC, SC, FL, TN, AL MS (404) 331-2131 V. Chicago IL, MN, WI, MI, IN, OH (312) 353-2740 VI. Dallas TX, NM, OK, AZ, LA (214) 767-8406 VII. Kansas City MO, IA, NB, KS VIII. Denver CO, UT, WY, MT, ND, SD (303) 844-5621 IX. San Francisco CA, NV, AZ, HI X. Seattle WA, OR, ID, AK (415) 556-8880 Questions pertaining to this Mortgagee Letter should be directed to the Single Family Loan Management Branch of the local HUD Office. Sincerely yours, Arthur J. Hill Acting Assistant Secretary for Housing-Federal Housing Commissioner _____________________________________________________________________ ATTACHMENT 1 MANUAL CHECKS of SOCIAL SECURITY NUMBERS Fraud perpetrators may not be aware that some social security number combinations are not authorized and may randomly select a number that was never issued. The List below shows the first digits of valid social security numbers that were issued to each state and territory. Some states or territories have only one three-digit number. Most have more than one number, usually one or more series of numbers in a given range. Some three-digit numbers may be assigned to more than one state or territory. Initial digits in the 700 to 729 series were issued by the Railroad Retirement Agency years ago. Social security numbers in this range probably belong to older workers. As of December 1988, the three-digit numbers from 650 to 699 and 730 to 999 were not yet assigned to any state or territory. The Social Security Administration assigns numbers according to the location at which a person applies for his or her card. When the first digits of a social security number do not match the residence history of an individual, the number may be invalid. Additional documentation is required including the actual social security card. Lenders should ask the individual where he or she applied for the card. If the location is inconsistent with the listing below, explain to the individual that the assistance must be suspended and cannot be reinstated until the validity of the social security number can be verified. _____________________________________________________________________ ATTACHMENT 1 (cont.) Valid Social Security Numbers - Initial Three Digits 001-003 New Hampshire 501-502 North Dakota 004-007 Maine 503-504 South Dakota 008-009 Vermont 505-508 Nebraska 010-034 Massachusetts 509-515 Kansas 035-039 Rhode Island 516-517 Montana 040-049 Connecticut 518-519 Idaho 050-134 New York 520 Wyoming 135-158 New Jersey 521-524 Colorado 159-211 Pennsylvania 525 New Mexico 212-220 Maryland 526-527 Arizona 221-222 Delaware 528-529 Utah 223-231 Virginia 530 Nevada 232-236 West Virginia 531-539 Washington 232 North Carolina 540-544 Oregon 237-246 North Carolina 545-573 California 247-251 South Carolina 574 Alaska 252-260 Georgia 575-576 Hawaii 261-267 Florida 577-579 Washington, DC 268-302 Ohio 580 Virgin Islands 303-317 Indiana 580-584 Puerto Rico 318-361 Illinois 535- New Mexico 362-386 Michigan 586 Guam 387-399 Wisconsin 586 American Samoa 400-407 Kentucky 586 Philippine Island 408-415 Tennessee 587-588 Mississippi 416-424 Alabama 589-595 Florida 425-428 Mississippi 596-599 Puerto Rico 429-432 Arkansas 600-601 Arizona 433-439 Louisiana 602-626 California 440-448 Oklahoma 627-645 Texas 449-467 Texas 646-647 Utah 468-477 Minnesota 648-649 New Mexico 478-485 Iowa 700-729 Railroad 486-500 Missouri Retirement ___________________________ 1 Number 232, with middle digits 30, has been allocated to North Carolina from West Virginia _____________________________________________________________________ ATTACHMENT 2 STATES USE OF SOCIAL SECURITY NUMBERS FOR DRIVER'S LICENSES Of the 16 jurisdictions that require the Social Security number to be shown, only 5 use it as the driver license number. In 11 other States, the submittal of the Social Security number is voluntary, but if it is submitted it is used as the driver license number in 4 States. A photograph is used on the driver license in all States except New Jersey, where it is required for those under 21 and optional for others, and Vermont, where the photo is optional. DRIVER IDs SOCIAL SECURITY NON-DRIVER NUMBER IDs ________________________________________________________________ Alabama x x Alaska Optional x Arizona Optional Arkansas ________________________________________________________________ California Colorado Optional x Connecticut ________________________________________________________________ Delaware Dist. of Col. 1/ x 3/ Florida - x Georgia 2/ x ________________________________________________________________ Hawaii 1/ x x Idaho 2/ x Illinois Optional Optional Indiana x x ________________________________________________________________ Iowa 2/ 4/ Kansas Kentucky x x Louisiana x optional ________________________________________________________________ Maine Maryland Massachusetts Optional Michigan ________________________________________________________________ Minnesota Mississippi 1/ x x Missouri x x Montana 2/ optional ________________________________________________________________ Nebraska Nevada 1/ x x New Hampshire Optional x New Jersey ________________________________________________________________ _____________________________________________________________________ ATTACHMENT 2 (cont.) New Mexico x x New York North Carolina North Dakota x x ________________________________________________________________ Ohio x Optional Oklahoma Oregon Pennsylvania ________________________________________________________________ Rhode Island x South Carolina South Dakota x Tennessee ________________________________________________________________ Texas Utah Optional x Vermont Virginia 1/ x Optional ________________________________________________________________ Washington West Virginia x x Wisconsin Wyoming x x Puerto Rico None Issued ________________________________________________________________ 1 The Social Security number is the license or card number. 2 Not mandatory. When supplied, the Social Security number becomes the license number in Georgia, Idaho, Iowa, and Montana. 3 Senior Citizens only. If given, the SSN is the card number. Source: U. S. Department of Transportation Federal Highway Administration August 1988 Driver License Administration Requirements and Fees. _____________________________________________________________________ ATTACHMENT 3 INVALID SOCIAL SECURITY NUMBERS 1) "Pocketbook Numbers". SSN 078-05-1120 was the first of many numbers now referred to as "pocketbook" numbers. It first appeared on a sample Social Security Card contained in wallets sold nationwide since 1938. Since then, it has been reported thousands of times on Wage Reporting System matches and taxpayer returns. People often thought that the number on the card was theirs and used it as they would a government-issued number. There are now over twenty (20) different "pocketbook" SSNs, each used by some organizations displaying an actual number in their advertising. The following are the most common "pocketbook" SSNs: 022-28-1852 141-18-6941 212-09-7694 042-10-3580 165-16-7999 219-09-9998 062-36-0794 165-18-7999 306-30-2348 078-05-1120 165-20-7999 308-12-5070 095-07-3645 165-22-7999 468-28-8779 128-03-6045 165-24-7999 549-24-1889 135-01-6629 189-09-2294 987-65-4320