www.hudclips.org 

U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D. C. 20410-8000

July 31, 1987
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 87-23
     TO:  ALL APPROVED MORTGAGEES
     SUBJECT:  Replacement Mortgage Insurance Certificates
 
     This letter addresses omissions, abbreviations, and errors
     on Mortgage Insurance Certificates (MIC) printed by HUD's
     Computerized Homes Underwriting Management System (CHUMS).
 
          The MIC is an important legal document which should be as
     accurate as possible.  However, its primary function is to
     identify the loan which was insured.
 
          Certain information on the MIC must be free of errors to
     ensure that we can identify the loan and process a claim for
     insurance benefits.  Other, less critical, data may contain
     minor errors without affecting the insurance coverage.
 
          The items that must be accurate are: the FHA case number,
     Section of the Act ADP code (which identifies the FHA program),
     mortgage amount, interest rate, first payment date, maturity
     date, amortization plan (GPM or GEM plan), living units,
     mortgagor social security number, and mortgagee ID.  Except for
     minor discrepancies discussed below, the mortgagor name and
     property address must also be accurate.
 
          Errors in these items should be brought to the attention
     of the Mortgage Credit Branch of the HUD Field Office that
     insured the loan so that both the MIC and the cause of the
     errors can be corrected.
 
          The original MIC must be returned when you request a
     correction.  Where there is an error in the FHA case number,
     the Field Office will have to retrieve the loan file from
     storage before issuing a replacement MIC.  Unfortunately,
     retrieving a loan file can take several weeks.
 
          To expedite other types of corrections, we will issue a
     corrected MIC when you send copies of pertinent documents or
     certifications to the Mortgage Credit Branch, along with the
     original MIC.  A certification is acceptable for changes to the
     ADP code, first payment date, maturity date, amortization plan,
     living units, mortgagor social security number, mortgagor name,
     or mortgagee ID.
_____________________________________________________________________
 
                                                       2
 
     For corrections to the mortgage amount or interest rate, send a
copy of the note along with the original MIC.  If the MIC
significantly misquotes the property address, send a copy of either
the appraisal, the conditional commitment, or the VA CRV; send a copy
of the HUD application form, HUD-92900, on a no appraisal refinance.
The following are examples of what we consider significant errors in
the address: misquoting the house number -- 912 for 913; misquoting
the street -- 12th for 15th or Warren for Warrenton; misquoting the
direction -- SE for SW; or misquoting the type of street -- ST for
PKY.
 
     When the name on the MIC differs slightly from the name on the
note and mortgage, it is not necessary to obtain a corrected MIC.  We
will not issue a replacement MIC for minor misspellings;
abbreviation, omission or errors in the middle name or initial; or
omission of co-mortgagors.  If you feel compelled to correct these
types of discrepancies, feel free to do so.  Please send a photocopy
of the corrected MIC, with your changes circled, to the Mortgage
Credit Branch.  Errors in the program ID, loan-to-value ratio,
borrower type and minor misspellings of the street name will be
handled in the same way.  By minor misspellings, we mean obvious
errors where there is no doubt about the street identified.  Errors
involving transposed letters or an omitted or extraneous letter may
be corrected by you -- for example:  Bellview or Bellleview for
Belleview, Engelwood for Englewood.
 
     GNMA is in agreement with this letter and concurs with this
policy on corrections.
 
     To give you a handy reference, I have enclosed a summary of how
the various errors will be handled, a list of the abbreviations we
use for various street types, and charts of the amortization plan
codes, borrower type codes, commonly used ADP codes, and program ID
codes.  If you have questions, phone (202) 426-7212.
 
                               Sincerely yours,
 
                               Thomas T. Demery
                               Assistant Secretary
 
Enclosures
_____________________________________________________________________
 
ERROR IN THE FOLLOWING ITEMS REQUIRE CORRECTED MIC FROM HUD
 
     FHA CASE NUMBER
 
     ADP CODE
 
     AMORTIZATION PLAN (GPM OR GEM PLAN CODE)
 
     LIVING UNITS
 
     MORTGAGOR NAME (EXCEPT FOR MINOR MISSPELLING OR TO ADD CO-
     MORTGAGOR(S))
 
     MORTGAGOR SOCIAL SECURITY NUMBER
 
     CO-MORTGAGOR SOCIAL SECURITY NUMBER
 
     MORTGAGE AMOUNT
 
     INTEREST RATE
 
     MONTHLY PAYMENT (P&I) (ONLY IF ERROR IS MORE THAN $1.00)
 
     MATURITY DATE
 
     FIRST PAYMENT DATE
 
     ADDRESS OF PROPERTY (EXCEPT FOR MINOR MISSPELLINGS OF THE STREET
     NAME)
 
     MORTGAGEE NAME AND ID
 
ERRORS IN THE FOLLOWING ITEMS MAY BE CORRECTED BY THE MORTGAGEE,
SEND PHOTOCOPY OF CORRECTED MIC TO HUD OFFICE
 
     PROGRAM ID
     LTV RATIO
     BORROWER TYPE (INVESTOR, OCCUPANT, ETC.)
     MORTGAGOR NAME (MINOR MISSPELLINGS ONLY)
     CO-MORTGAGOR NAME
     PROPERTY ADDRESS (MINOR MISSPELLING OF STREET NAME ONLY)
 
     Should you have any questions concerning this matter, please
contact the Mortgage Credit Section of the local HUD Office.
_____________________________________________________________________
 
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STREET TYPES   Alley        ALY       Oval         OVAL
               Arcade       ARC       Overpass     OVER
               Avenue or    AVE       Park         PARK
                 Avenida              Parkway      PKY
               Boulevard    BLVD      Pass         PASS
               Branch       BR        Path         PATH
               Bridge       BRG       Pike         PIKE
               Bypass       BYP       Place        PL
               Calle        C         Plaza        PLZ
               Causeway     CSWY      Point        PT
               Center       CTR       Ramp         RAMP
               Circle       CIR       Road         RD
               Common       COMM      Row          ROW
               Court        CT        Rue          RUE
               Cove         CV        Skyway       SKWY
               Cresent      CRES      Square       SQ
               Crossing     XING      Street       ST
               Drive        DR        Terrace      TER
               Expressway   EXPY      Throughway   THWY
               Freeway      FWY       Trafficway   TFWY
               Gardens      GDNS      Trail        TRL
               Highway      HWY       Tunnel       TUNL
               Lane         LN        Turnpike     TPKE
               Loop         LOOP      Underpass    UNP
               Mall         MALL      Walk         WALK
               Manor        MNR       Wall         WALL
               News         NEWS      Way          WAY
               Motorway     MTWY
 
AMORTIZATION PLAN CODES FOR GRADUATED PAYMENT MORTGAGES (GPMs)
                        (Sections 245(a) and (b))
 
          A    Annual increase of    2.5  percent for 5  years
          B    Annual increase of    5.O  percent for 5  years
          C    Annual increase of    7.5  percent for 5  years
          D    Annual increase of    2.0  percent for 10  years
          E    Annual increase of    3.0  percent for 10  years
          F    Annual increase of    4.9  percent for 10  years
 
AMORTIZATION PLAN CODES FOR GROWING EQUITY MORTGAGES (GEMs)
                        (Section 245(a))
 
          L    Annual increase of 1 percent
          M    Annual increase of 2 percent
          N    Annual increase of 3 percent
          O    Annual increase of 4 percent
          P    Annual increase of 5 percent
 
BORROWER TYPE                    1=occupant
                                 2=landlord
                                 3=builder
                                 4=operative builder
                                 5=escrow commitment