![](media/image1.png){width="0.9583333333333334in"
height="0.9166666666666666in"}

**U. S. Department of Housing and Urban Development**

Washington, D.C. 20410-8000

January 5, 1994

OFFICE OF THE ASSISTANT SECRETARY

FOR HOUSING-FEDERAL HOUSING COMMISSIONER

**Mortgagee Letter 94-1**

TO: ALL APPROVED MORTGAGEES

**SUBJECT:** Revision to form HUD-27001, Transmittal for Payment of

One-Time Mortgage Insurance Premium (OTMIP)

The Department of Housing and Urban Development (HUD) has

revised the form HUD-27001, Part 4, Old Case Up-Front Mortgage

Insurance Premiums (UFMIP) Refund Data for FHA Refund Credit, to

reflect recent program changes. These changes will be in effect

for all mortgage terminations and refinances closed on or after

January 1, 1994. This is applicable to those mortgages insured

under the provisions of the Mutual Mortgage Insurance Fund. The

Department has also clarified instructions for preparation of the

form. A copy of the revised form is attached. The changes are

as follows:

1\. OTMIP was replaced on the form with UFMIP to reflect

the change from OTMIP to the Risk-Based Premium

structure which includes the up-front and monthly

premiums (Note: monthly premiums are reported

separately on form HUD-2752, Risk-Based Premiums:

Monthly Remittance Summary).

2\. A section was inserted (before Part 1) for you to

indicate the type of loan you are submitting. Please

follow the directions for the completion of the form,

based on your selection of loan type.

3\. The captions for Parts 2, 3 and 4 were changed to

clarify what information should be entered.

4\. The instructions for Item 3b were changed to clarify

what amount should be entered. Please note that the

amount in 3b can never be greater than the amount in

3a.

5\. Item 4b was changed to read \"Computed Premium\". This

is the amount of prepaid (OTMIP or UFMIP) premium

required for insurance of the old mortgage. Please

recompute the prepaid premium amount to verify

correctness of the original computation.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

2

6\. Item 4f was changed to Premium Refund Factor to reflect

the name of the new Earnings Factors tables. The

refund factor should be selected from Attachment 2 of

this mortgagee letter. The factor should be entered

starting in the space following the decimal. If it is

less than 5 numbers, leave the fifth space blank.

(Note: The Premium Refund Factor provided on the

printout of the Netting Authorization Report is 5

numbers because it has an added zero at the end.)

7\. Item 4g was changed to reflect the new computation of

the amount earned by HUD. To compute this amount,

subtract the amount of the refund credit (which will be

entered in 4h) from the old case computed premium (4b).

8\. Item 4h is changed to reflect the new computation of

the refund credit. To compute the refund credit,

multiply the computed premium in 4b by the factor in

4f.

9\. A space is provided for the entry of your Netting

Authorization Number. Although the entry of the

Netting Authorization Number on this form is optional,

it is always advisable to obtain a netting

authorization number when you are expecting to apply

the unearned premium toward the MIP for the new loan.

Please note that the information in Part 4 can be taken

directly from the netting authorization report IF YOU ARE CLOSING

THE LOAN IN EITHER OF THE MONTHS SHOWN ON THE REPORT. HOWEVER,

ALL INFORMATION ON THE NETTING AUTHORIZATION REPORT SHOULD BE

RECONCILED TO THE MORTGAGEE DATA. IF YOU ARE UNABLE TO RECONCILE

ANY DIFFERENCES, YOU SHOULD CONTACT THE TELEPHONE SERVICE CENTER

AT (703) 235-8117.

You may obtain a supply of the revised form HUD-27001 by

contacting your local office or you may photocopy the attached

form. If your local Field Office does not have a supply of the

revised forms, please photocopy the attached form for use until

the revised form is stocked. If you have any questions on the

new form, please contact the Telephone Service Center at

\(703\) 235-8117.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

3

Use of the Automated Clearing House (ACH) system is now

mandatory for the remittance of Single Family Mortgage Insurance

Premiums. The revised form HUD-27001 is only for use during your

transition to your participation in ACH. To obtain more

information on ACH or to sign-up, contact the ACH Outreach Team

at (703) 845-4991.

Very sincerely yours,

![](media/image2.png){width="2.5944444444444446in"
height="0.6236111111111111in"}

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Nicolas P. Retsinas

Assistant Secretary for Housing

\- Federal Housing Commissioner

Attachments

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Transmittal for Payment

Up Front Mortgage Insurance

Premium (UFMIP)

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* GRAPHICS MATERIAL IN ORIGINAL DOCUMENT OMITTED \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

ref. Handbook 4110.2 form HUD-27001 (1/94)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

General Instructions:

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* GRAPHICS MATERIAL IN ORIGINAL DOCUMENT OMITTED \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

ref. Handbook 4110.2 form HUD-27001 (1/94)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

ATTACHMENT 2

=====================================================================

REVISED MIP REFUND FACTORS

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

YEAR 1 YEAR 4 YEAR 7

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Month 1 0.9917 Month 37 0.5840 Month 73 0.0770

Month 2 0.9833 Month 38 0.5660 Month 74 0.0700

Month 3 0.9750 Month 39 0.5480 Month 75 0.0630

Month 4 0.9667 Month 40 0.5300 Month 78 0.0560

Month 5 0.9583 Month 41 0.5120 Month 77 0.0490

Month 6 0.9500 Month 42 0.4940 Month 78 0.0420

Month 7 0.9417 Month 43 0.4760 Month 79 0.0350

Month 8 0.9333 Month 44 0.4580 Month 80 0.0280

Month 9 0.9250 Month 45 0.4400 Month 81 0.0210

Month 10 0.9167 Month 46 0.4220 Month 82 0.0140

Month 11 0.9083 Month 47 0.4040 Month 83 0.0070

Month 12 0.9000 Month 48 0.3860 Month 84 0.0000

YEAR 2 YEAR 5 YEAR 8

Month 13 0.8917 Month 49 0.3720 Month 85

Month 14 0.8833 Month 50 0.3580 and beyond 0.0000

Month 15 0.8750 Month 51 0.3440

Month 16 0.8687 Month 52 0.3300

Month 17 0.8583 Month 53 0.3160

Month 18 0.8500 Month 54 0.3020

Month 19 0.8417 Month 55 0.2880

Month 20 0.8333 Month 56 0.2740

Month 21 0.8250 Month 57 0.2600

Month 22 0.8167 Month 58 0.2450

Month 23 0.8083 Month 59 0.2320

Month 24 0.8000 Month 60 0.2188

YEAR 3 YEAR 6

Month 25 0.7835 Month 61 0.2068

Month 26 0.7870 Month 62 0.1967

Month 27 0.7505 Month 63 0.1845

Month 28 0.7340 Month 64 0.1733

Month 29 0.7175 Month 65 0.1622

Month 30 0.7010 Month 66 0.1510

Month 31 0.6845 Month 67 0.1398

Month 32 0.6680 Month 68 0.1287

Month 33 0.6515 Month 69 0.1175

Month 34 0.6350 Month 70 0.1083

Month 35 0.6185 Month 71 0.0952

Month 36 0.6020 Month 72 0.0840

=====================================================================