> U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D.C. 20410-8000

May 13, 1999

OFFICE OF THE ASSISTANT SECRETARY

FOR HOUSING-FEDERAL HOUSING COMMISSIONER

> MORTGAGEE LETTER 99-16

MEMORANDUM FOR: ALL APPROVED MORTGAGEES

ATTENTION: SINGLE FAMILY FHA LENDERS - TECHNOLOGY STAFF

SUBJECT: Requirements for Year 2000 compliant electronic data
submissions

The purpose of this mortgagee letter is to provide guidance for the
submission of Year 2000 (Y2K) compliant electronic data transmissions to
the Department of Housing and Urban Development (HUD). HUD has
established a target of September 30, 1999 to ensure that our interfaces
with our business partners are Y2K compliant. Industry partners that
communicate with HUD through the FHA Connection **only** do not need to
take any action. Those that communicate with HUD through other
electronic means must modify their systems and/or procedures as soon as
possible, to allow sufficient time for testing.

Mortgagees that communicate with HUD using CPU to CPU, HUD MPC, or
third-party vendor software should have received instructions from HUD
or the software vendor regarding necessary Y2K upgrades. If not, please
notify your normal contact to ensure that you have ample time to make
any internal software changes or install new hardware and software

Please be aware that the **Telecash** system will no longer be supported
and users must make arrangements to make these payments via Mellon\'s
HUD MPC or CPU to CPU. Contact HUD\'s Automated Clearing House (ACH)
Outreach Team at 703-845-4991 for questions regarding ACH payments.

> Mortgagees utilizing Electronic Data Interchange (EDI) X12
> transmissions to

communicate with HUD must make modifications to provide Y2K compliant
data. This applies to transactions for Single Family FHA Claims
(Transaction Set 260), Loan Defaults (Transaction Set 264), Mortgage
Record Changes and Terminations (Transaction Set 266), Premium Payments
(Transaction Sets 811, 820, 823 and 827) and Functional Advice
(Transaction Sets 824 and 997). To help you meet the deadline of
September 30, 1999, the Department offers two choices:

> o Mortgagees may choose to satisfy Y2K requirements by upgrading to
> X12 version 004010 which is certified as compliant. This option will
> also benefit mortgagees in that the 004010 version will include all
> the changes and additional codes that have been approved by XI2.
> Section IX of the Implementation Guide for EDI contains maps for X12
> version 004010.
>
> o Mortgagees may continue to use the current X12 version for each
> transaction set by modifying the current D6 date designation and
> implementing mapping changes to comply with the 8-digit dates
> necessary for Y2K. Section VIII of the Implementation Guide for EDI
> contains information for changing maps to comply with these date
> changes, as depicted in the following table:

Transaction Set X12 Version Date Segment Date Qualifier Data Element

TS260 003032 DTP D8 1250

TS264 003032 DTP D8 1250

TS266 003042 DTP D8 1250

TS811 003050 DTM D8 374

TS820 003030 DTM D8 373

TS823 003050 DTM D8 374

TS824 003040 DTM D8 373

TS827 003050 DTP D8 1250

TS997 003020 n/a D8 n/a

Please refer to the EDI Implementation Guide on the HUD Web Page for
additional information. It can be found at
**http://www.hud.gov/fha/comp/edi/edi.html** and provides detailed
descriptions of HUD\'s usage of EDI.

EDI users must notify HUD prior to implementing Y2K modifications. To do
this, contact the HUD EDI Help Desk at 1-800-HUD-4EDI (1-800-483-4334).

Users of HUD\'s FHA Connection and Direct Connect (Frame Relay) are
advised that no changes are necessary. The FHA Connection website at
**https://entp.hud.gov/clas** provides additional information, contact
phone numbers and on-line registration.

> To summarize the contact points:
>
> o ACH Outreach Team (703) 845-4991
>
> o EDI Help Desk (800) 483-4334
>
> For other Y2K questions, please contact Kris Lasley at (202) 708-0614,
> ext. 3480.

Sincerely,

> William C. Apgar
>
> Assistant Secretary for Housing-
>
> Federal Housing Commissioner