www.hudclips.org U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, D. C. 20410-8000 July 27, 1990 OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSION Mortgagee Letter 90-27 TO: ALL APPROVED MORTGAGEES SUBJECT: Single Family Default Monitoring System (SFDMS) The Single Family Default Monitoring Systems (SFDMS) tracks data on delinquent mortgages until a delinquency is cured or a claim is submitted. It provides the Department the first indication of serious trouble and is used to monitor lenders, field offices and to track trends. The SFDMS data is also reported to the Credit Alert Interactive Voice Response System (CAIVRS) to assist in detecting potential borrower risk at the mortgage credit review. It is also used as one of the tools to assess the adequacy of the FHA fund reserves. As such, the completeness and accuracy of the data in SFDMS is of prime interest to the Department. Many lenders servicing large portfolios of FHA-insured mortgages continue to submit hard copies of the delinquency report, Form HUD-92068A or computer generated facsimiles each month, many of which are illegible and carelessly or improperly prepared. For those lenders who submit computer generated copies, it would appear that they could just as easily submit the data to HUD on magnetic tape or cartridge. Therefore, the Department is requesting that all lenders reporting 50 loans or more per month begin submitting future reports on magnetic tape or cartridge, as soon as possible but no later than the report for December er 31, 1990. Since some servicers may have difficulty meeting this deadline, we do not wish to mandate the change yet. However, if our records show that this requested change is not occurring the Department will undertake rule making to support mandatory reporting requirements. Therefore, lenders must review their reporting methods, quality control and automation procedures to be sure that they are reporting properly, and if they are not, they should make whatever changes and improvements that are necessary to do so. Attached is a copy of the magnetic tape or cartridge specifications. Your test tapes or cartridges should be clearly marked as a 92068-A test, and include the name and telephone number of a contact person. The test data will be checked by the ADP staff and you will be notified if the tape or cartridge can be read and is acceptable. Test tapes and cartridges should be sent to the attention of: _____________________________________________________________________ 2. Noah Galloway Computer Management Division Room 4240 451 7th Street, S.W. Washington, D.C. 20410 Telephone 202-708-1099 Thereafter, production tapes or cartridges identified as 92068-A with a return address should be sent monthly to: Computer Management Division Room 4238 451 7th Street SW Washington, DC 20410 We also call your attention to two errors that have created serious problems in recent submissions of tapes. 1. Dashes must not be shown in the FHA case number field and if the case number has only 8 or 9 digits (no check digit), the data should be left justified, leaving the last column(s) blank. Leading zeros must be shown. For example, a California case should be 041003217, not 41003217. 2. The zip code field is followed by a blank space. Therefore, left justify all entries in that field. Analysis of data received has shown that many lenders are submitting duplicate reports, that is, more than one report per reporting period. In some instances, we are receiving a tape and a hard copy of the same data for the same reporting period. In other cases, two hard copy reports are submitted for the same monthly reporting cycle. It appears that some of these duplicate reports may represent corrections or late updates of data. It also appears through telephone conversations and mortgagee reviews that for some institutions there may be a lack of communication between their servicing and ADP departments which is causing some of the reporting problems, especially when a tape and a hard copy are submitted with the same information. _____________________________________________________________________ 3. If there are any questions regarding this letter please call: Dr. William F. Shaw, Director Information Systems Division U.S. Department of Housing and Urban Development Washington, DC 20410 202-708-2190 __________________________________ C. Austin Fitts Assistant Secretary for Housing Federal Housing Commissioner _____________________________________________________________________ ATTACHMENT 1 INSTRUCTIONS FOR SUBMISSION OF SINGLE FAMILY DEFAULT MONITORING SYSTEM DATA ON MAGNETIC TAPE The complete description for each field of the data records is included on the back of the attached form HUD-92068-A. The specifications for the tape are as follows: o 9 track EBCDIC, unlabeled, 128 bytes per record, blocked from 1 to 228 records per block. o Each data record is 128 bytes long, positions 1-125 contain data, positions 126-128 are spaces. o Record layout: Data Field Length 01- 10 Digit Mortgagee Number 10 02- Mortgage Loan Number 12 03- FHA Case Number 10 04- Section of the Act (ADP Code)* 03 05- Mortgagor Last Name 13 06- Mortgagor First Initial 01 07- Mortgagor Middle Initial 01 08- Mortgagor Social Security Number 09 09- Co-Mortgagor Social Security Number 09 10- Property Street Number 05 11- Property Street Name 15 12- Property City Name 14 13- Property State Name 02 14- Property Zip Code 05 15- Blank 01 16- Due Date of First Payment (MMYY) 04 17- Oldest Unpaid Installation Date (MMYY) 04 18- Status of Mortgage 05 19- Occupancy Status 01 20- Case in Bankruptcy Indicator 01 21- Blank 03 NOTE: Do not include header nor trailer records, the tape is to contain text only. The tape should begin with the 10 Digit Mortgagee Number and end with the last data item entered in column #125 of the last record, followed by the 3 blank spaces of the last record. To receive your tape back, you are requested to affix a sticker with your return address to the tape. * Last 3 digits of 12 and 13 digit FHA Case Numbers denote the Section of the Act.