September 4, 2002

**MORTGAGEE LETTER** **2002-18**

## TO: ALL APPROVED MORTGAGEES

## ATTENTION: MULTIFAMILY MORTGAGEES

## SUBJECT: Mortgagee Registration Requirements for the Multifamily Delinquency and 

> **Default Reporting (MDDR) System**

The regulations at 24 CFR Part 200, Subpart B, require multifamily
mortgagees to report mortgage delinquencies, defaults, reinstatements,
assignment elections, withdrawals of assignment elections, and related
mortgage information electronically, through the Internet, to the
Department of Housing and Urban Development. The purpose of the
regulation is to require all mortgagees that hold or service multifamily
mortgages insured by HUD to submit this mortgage related data to HUD
electronically in a prescribed format. HUD developed the Multifamily
Delinquency and Default Reporting (MDDR) System to assist mortgagees in
satisfying these regulations. The MDDR System is an Internet application
allowing mortgagees the ability to submit delinquency and default
mortgage information to the Department.

The Department has issued three Mortgagee Letters regarding the
requirement to register and use the MDDR System, along with releases of
new versions of the System (Mortgagee

Letter 00-02 dated January 5, 2000, Mortgagee Letter 00-16 dated May 2,
2000, and Mortgagee Letter 01-11 dated April 25, 2001). A review has
revealed there are approximately 236 multifamily mortgagees that are not
registered to use the MDDR System. Multifamily mortgagees that hold or
service HUD-insured mortgages are required to register with the MDDR
System even if they do not have any delinquent or default related
mortgage information to report to the Department.

According to the following schedule that was implemented in 24 CFR Part
200, Subpart B, and referenced in Mortgagee Letter 00-02 dated January
5, 2000, all multifamily mortgagees should currently be in compliance
with this requirement.

1)  Mortgagees holding or servicing 70 or more HUD-insured mortgages
    should have been in compliance no later than March 1, 1999;

2)  Mortgagees holding or servicing from 26 to 69 HUD-insured mortgages
    should have been in compliance no later than January 1, 2000;

3)  Mortgagees holding or servicing from 11 to 25 HUD-insured mortgages
    should have been in compliance no later than January 1, 2001; and

4)  Mortgagees holding or servicing 10 or fewer HUD-insured mortgages
    should have been in compliance no later than January 1, 2002.

Registration for access to the MDDR System can be obtained through the
Internet at HUD's web page at [www.hud.gov](http://www.hud.gov/). Once
there, select "Lenders" under "Housing Industry"; next, under "Work
On-Line", select "FHA Connection"; then click on "enter now." This
brings up the FHA Connection page that explains in detail about
registering as an Application Coordinator or a Standard User. You would
next select "Application Coordinator Registration" or "Standard User
Registration." The user will need to provide the following information
to obtain a user ID and password:

1.  First Name

2.  Middle Initial

3.  Last Name

4.  Social Security Number

5.  Organization Name

6.  Lender ID

7.  E-mail Address

8.  Contact Telephone Number

9.  Password

10. Mother's Maiden Name

Once HUD reviews and approves the request, an ID will be issued by mail
within 7-10 days to the CEO of the applicant's lending organization.
Effective 30 days from the date you receive your system ID, the
Department will cease accepting your delinquency, default and other
mortgage related information from any other source.

Beginning October 2002, any mortgagee that is not in compliance with
these regulations will be referred to the Department's Mortgagee Review
Board for consideration of administrative sanction. I urge you to come
into compliance before that date.

If you have questions relating to MDDR System functions, please
telephone the Office of Program Systems Management, Sharon E. Parker,
Housing Project Manager, at (202) 708-0614, extension 2557. There is
also a Help Desk available for technical questions at (202) 401-7816. If
you have programmatic/policy questions, they should be directed to the
Office of Asset Management, Cindy Bridges, Housing Project Manager, at
(202) 708-2654, extension 2603, or Gloria Burton, Housing Project
Manager, at (202) 708-2654, extension 2611.

Sincerely,

John C. Weicher

Assistant Secretary for Housing-

> Federal Housing Commissioner