www.hudclips.org 


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

November 9,1990
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
MORTGAGEE LETTER 90-39
       TO:  ALL APPROVED MORTGAGEES
       SUBJECT: Disclosure and Verification of Social Security Numbers
                 (SSNs) for the Section 235 Program
 
            Section 165 of the Housing and Community Development Act of
       1987 (Section 165(a), P.L. 100-242), authorizes HUD to require
       certain individuals, and members of their households six years of
       age and older, to disclose and verify their SSN.  The Final Rule
       on Disclosure and Verification of the SSN with respect to the
       Section 235 Program became effective March 30, 1990 (Published in
       the Federal Register at 55 FR 11904).  The requirement will
       enable HUD to use SSNs to help decrease the incidence of fraud,
       waste and abuse in the Section 235 program.  The disclosure and
       verification of the SSN is an explicit condition of continued
       eligibility for Section 235 assistance.  Therefore, these
       requirements must be met whenever a Recertification of Family
       Income and Composition is processed.
 
            In an effort to fully apprise homeowners of the new
       requirement, and the importance of disclosing and verifying the
       SSN, lenders must advise homeowners in writing of the
       requirement.  This may be accomplished at the same time the Form
       HUD-93101 (Recertification of Family Income and Composition) is
       sent to the homeowner.
 
         I.  Disclosure and Verification of SSNs
 
             A.  All homeowners (and members of their households six
                 years of age and older) are required to disclose and
                 verify complete and accurate SSNs.  Verification of the
                 SSN is a one-time requirement.  For example, if the
                 homeowner provides the lender with documentation to
                 verify the SSN at the time of an annual recertification
                 (October 1990), it is not necessary to provide the
                 documentation to verify the SSN for any subsequent
                 recertifications.  However, disclosure of the SSN must
                 be provided at the time of each recertification.
                 Lenders must advise homeowners of the one-time
                 verification requirement in writing.
 
_____________________________________________________________________
                                                        2
 
II.  Documentation Requirements
 
     A.  Documentation is required for each SSN disclosed.  To
         document the SSN, all individuals should furnish a copy
         of a valid Social Security Card (SSC) issued by the
         Social Security Administration of the Department of
         Health and Human Services. (The SSN has nine digits
         separated by hyphens as follows: 000-00-0000.) See
         Attachment 1.
 
     B.  In those cases where the individual is unable to
         provide a copy of a valid SSC, lenders may accept
         copies of any two of the following documents which
         would contain the SSN and the individual's identity:
 
          1.  A drivers license (See Attachment 2).
 
          2.  An identification card issued by a Federal, state
              or local agency.
 
          3.  An identification card issued by an employer or
              trade union.
 
          4.  Earnings statements or payroll stubs.
 
          5.  Bank statements or personal checks.
 
          6.  Internal Revenue Service (IRS) Form 1099.
 
          7.  Unemployment benefit letter.
 
          8.  Retirement benefit letter.
 
          9.  Life insurance policies.
 
         10.  Court records:  such as marriage and divorce
                              judgments or bankruptcy records.
 
         11.  Other documents that the lender determines
              adequate evidence of a valid SSN.
 
     C.  Individuals who have applied for legalization under
         the Immigration Reform and Control Act of 1986 (IRCA)
         are an exception to the documentation requirements
         stated above.  These individuals have a SSN to disclose
         but will not have the copy of the SSC as documentation.
         Acceptable documentation from those individuals is a
         letter from the Immigration and Naturalization Service
         (INS) assigning them the SSN.
 
_____________________________________________________________________
                                                                  3
 
         NOTE:  IRCA applicants generally applied for a SSC
                at the time they applied for amnesty.  The
                Social Security Administration assigned these
                individuals a SSN and issued a SSC.  However,
                this card was forwarded to INS and was placed in
                the applicant's file.  INS sends a letter to
                IRCA applicants informing them that a SSN has
                been assigned and they may use it until they are
                granted temporary lawful resident status.
 
     D.  Unacceptable Documentation
 
         Lenders may not accept documents that:
 
         1.  Are produced or completed by individuals, such as
             business cards, self completed wallet
             identification cards, or other store purchased cards.
             (People often purchase a plastic or metal SSC from
             companies or mail order firms.)
 
         2.  Have little or no importance, such as club
             membership or library cards.
 
             NOTE:  Lenders have the discretion to include
                    similar documents in this category.
 
     E.  Invalid or False Documents
 
         A lender may reject documents that are invalid or
         false.  To be considered invalid or false, the
         document, must fall under one of the following
         categories:
 
         1.  Invalid Social Security Numbers - Some individuals
             use invalid numbers taken from sample cards put in
             new wallets or from similar advertising.  These
             "pocketbook" numbers are invalid and are listed in
             Attachment 3.
 
         2.  False Documents - False identification documents
             can be either counterfeit, altered, or impostors:
 
             a.  Counterfeit - A forgery of a genuine document
                 or a copy of a document which may appear
                 authentic but is not legally issued.
 
_____________________________________________________________________
                                                       4
 
        b.   Altered - A genuine document that has had some
             identification changed to match the bearer.
             Most often the name, photograph, address or age
             and physical description are changed on altered
             documents.
 
        c.   Imposter - A genuine document obtained under
             false pretenses, or a blank genuine document
             stolen from the issuing agency.
 
F.  Procedures for Rejecting SSNs or Documentation
 
    When a lender suspects that it has been given an
    invalid or false document to evidence the SSN, it
    should notify the homeowner and require an explanation
    or additional proof of the SSN.  If the additional
    documentation is questionable, the lender may require
    the SSC be provided, or a duplicate card obtained if
    the original is not available.  If the additional
    documentation does not satisfy the lender that it is
    valid or genuine, the following actions must be taken:
 
    1.  The assistance payments contract must be suspended
        effective the 1st day of the first month after
        receipt of the additional documentation.
 
    2.  The assistance payments contract cannot be
        reinstated until the validity of the SSN can be
        verified.  The lender must advise the homeowner in
        writing of the action.
 
    3.  If the validity of the SSN is verified, the
        assistance payments contract is to be reinstated
        effective the 1st day of the month following
        receipt of the documentation.
 
Certifications
 
A.  If individuals disclose their SSN, but are unable to
    meet the verification requirement, a written
    certification must be executed by the individual to
    this effect.  The certification should state the
    individual's name, SSN, and that he/she is unable to
    submit the documentation.  The certification must be
    signed, and dated by each individual who does not have
    the documentation.  If the individual is under 18 years
    of age, the certification must be executed by his/her
    parent or guardian.
 
_____________________________________________________________________
                                                            5
 
     B.   The individual then has 60 days from the date of
          certification to obtain necessary documentation to
          verify the SSN disclosed.  If an individual is at least
          62 years of age, the lender may at its discretion,
          extend the period up to an additional 60 days (or 120
          days after certification).
 
     C .  The lender may refer the homeowner to the local Social
          Security Office so that he/she may complete and submit
          Form SS-5,"Application for Social Security Card," to
          request a duplicate Social Security Card.
 
     D.   If any individual has not been assigned a SSN, a
          certification executed by that individual is required.
          The certification should state the individual's name,
          and that he/she has not been assigned a SSN.  The
          individual should then date and sign the certification.
          If the individual is under 18 years of age, the
          certification must be executed by his/her parent or
          guardian.  This certification is required annually.  No
          further action is needed.  A lender cannot require an
          individual to apply for a SSN.
 
IV.  Criminal Violations
 
     A.   Since the SSN was considered an administrative tool for
          many years, it was not considered necessary to have a
          penalty provision covering the fraudulent application
          for or use of a SSN.  However, as time passed and the
          SSN came into broader use, the need to protect it
          became more apparent.  Penalty provisions were added to
          the Social Security Act and are contained in 42 U.S.C.
          408(f), (g) or (h).  Violations of these statutes
          include:
 
          1.  Providing false information to obtain a SSN.
 
          2.  Using a SSN based on false information to get a
              federally financed benefit.
 
          3.  Using someone else's SSN.
 
_____________________________________________________________________
                                                                          6
 
                4.  Misusing a SSN for any reason.
 
                5.  Making, possessing, buying, or selling counterfeit
                    Social Security cards.
 
           If documentation obtained indicates that the homeowner
     knowingly intended to deceive the lender, referral of the
     information should be forwarded to the Office of Inspector
     General for the Department of Health and Human Services DHHS), or
     to local prosecutors as a case of false statements.  The Office
     of Inspector General (DHHS) may be contacted by toll free
     hotline:  1-800-368-5779 or by contacting a Regional Inspector
     General for investigation as follows:
 
    Regions                     States Serviced             Telephone No.
 
   I.  Boston             MA, VT, NH, ME, RI, CT           (617) 565-2660
 
  II.  New York           NY, NJ, PR, VI                   (212) 264-1691
 
 III.  Philadelphia       PA, MD, DE, WV, VA, DC           (215) 596-6796
 
  IV.  Atlanta            KY, GA, NC, SC, FL, TN, AL MS    (404) 331-2131
 
   V.  Chicago            IL, MN, WI, MI, IN, OH           (312) 353-2740
 
  VI.  Dallas             TX, NM, OK, AZ, LA               (214) 767-8406
 
 VII.  Kansas City        MO, IA, NB, KS
 
VIII.  Denver             CO, UT, WY, MT, ND, SD           (303) 844-5621
 
  IX.  San Francisco      CA, NV, AZ, HI
 
   X.  Seattle            WA, OR, ID, AK                   (415) 556-8880
 
          Questions pertaining to this Mortgagee Letter should be
    directed to the Single Family Loan Management Branch of the local
    HUD Office.
 
                             Sincerely yours,
 
                             Arthur J. Hill
                             Acting Assistant Secretary for
                               Housing-Federal Housing Commissioner
 
_____________________________________________________________________
                                                        ATTACHMENT 1
 
             MANUAL CHECKS of SOCIAL SECURITY NUMBERS
 
     Fraud perpetrators may not be aware that some social
security number combinations are not authorized and may randomly
select a number that was never issued.
 
     The List below shows the first digits of valid social
security numbers that were issued to each state and territory.
Some states or territories have only one three-digit number.
Most have more than one number, usually one or more series of
numbers in a given range.  Some three-digit numbers may be
assigned to more than one state or territory.
 
     Initial digits in the 700 to 729 series were issued by the
Railroad Retirement Agency years ago.  Social security numbers in
this range probably belong to older workers.
 
     As of December 1988, the three-digit numbers from 650 to 699
and 730 to 999 were not yet assigned to any state or territory.
 
     The Social Security Administration assigns numbers according
to the location at which a person applies for his or her card.
When the first digits of a social security number do not match
the residence history of an individual, the number may be
invalid.  Additional documentation is required including the
actual social security card.  Lenders should ask the individual
where he or she applied for the card.  If the location is
inconsistent with the listing below, explain to the individual
that the assistance must be suspended and cannot be reinstated
until the validity of the social security number can be verified.
 
_____________________________________________________________________
                                                        ATTACHMENT 1
                                                          (cont.)
 
       Valid Social Security Numbers - Initial Three Digits
 
001-003 New Hampshire                  501-502 North Dakota
004-007 Maine                          503-504 South Dakota
008-009 Vermont                        505-508 Nebraska
010-034 Massachusetts                  509-515 Kansas
035-039 Rhode Island                   516-517 Montana
040-049 Connecticut                    518-519 Idaho
050-134 New York                       520     Wyoming
135-158 New Jersey                     521-524 Colorado
159-211 Pennsylvania                   525     New Mexico
212-220 Maryland                       526-527 Arizona
221-222 Delaware                       528-529 Utah
223-231 Virginia                       530     Nevada
232-236 West Virginia                  531-539 Washington
232     North Carolina                 540-544 Oregon
237-246 North Carolina                 545-573 California
247-251 South Carolina                 574     Alaska
252-260 Georgia                        575-576 Hawaii
261-267 Florida                        577-579 Washington, DC
268-302 Ohio                           580     Virgin Islands
303-317 Indiana                        580-584 Puerto Rico
318-361 Illinois                       535-    New Mexico
362-386 Michigan                       586     Guam
387-399 Wisconsin                      586     American Samoa
400-407 Kentucky                       586     Philippine Island
408-415 Tennessee                      587-588 Mississippi
416-424 Alabama                        589-595 Florida
425-428 Mississippi                    596-599 Puerto Rico
429-432 Arkansas                       600-601 Arizona
433-439 Louisiana                      602-626 California
440-448 Oklahoma                       627-645 Texas
449-467 Texas                          646-647 Utah
468-477 Minnesota                      648-649 New Mexico
478-485 Iowa                           700-729 Railroad
486-500 Missouri                               Retirement
 
___________________________
1 Number 232, with middle digits 30, has been allocated to North
  Carolina from West Virginia
 
_____________________________________________________________________
                                                              ATTACHMENT 2
 
                STATES USE OF SOCIAL SECURITY NUMBERS
                         FOR DRIVER'S LICENSES
 
     Of the 16 jurisdictions that require the Social Security
number to be shown, only 5 use it as the driver license number.
In 11 other States, the submittal of the Social Security number
is voluntary, but if it is submitted it is used as the driver
license number in 4 States.  A photograph is used on the driver
license in all States except New Jersey, where it is required for
those under 21 and optional for others, and Vermont, where the
photo is optional.
 
                              DRIVER
                                IDs
                         SOCIAL SECURITY          NON-DRIVER
                             NUMBER                   IDs
________________________________________________________________
     Alabama                    x                      x
     Alaska                  Optional                  x
     Arizona                 Optional
     Arkansas
________________________________________________________________
     California
     Colorado                Optional                  x
     Connecticut
________________________________________________________________
     Delaware
     Dist. of Col.           1/ x                      3/
     Florida                    -                      x
     Georgia                    2/                     x
________________________________________________________________
     Hawaii                  1/ x                      x
     Idaho                   2/                        x
     Illinois                Optional              Optional
     Indiana                    x                      x
________________________________________________________________
     Iowa                       2/                     4/
     Kansas
     Kentucky                   x                      x
     Louisiana                  x                  optional
________________________________________________________________
     Maine
     Maryland
     Massachusetts           Optional
     Michigan
________________________________________________________________
     Minnesota
     Mississippi                1/ x                   x
     Missouri                   x                      x
     Montana                    2/                 optional
________________________________________________________________
     Nebraska
     Nevada                     1/ x                   x
     New Hampshire           Optional                  x
     New Jersey
________________________________________________________________
_____________________________________________________________________
                                                        ATTACHMENT 2
                                                           (cont.)
 
     New Mexico                 x                      x
     New York
     North Carolina
     North Dakota               x                      x
________________________________________________________________
     Ohio                       x                   Optional
     Oklahoma
     Oregon
     Pennsylvania
________________________________________________________________
     Rhode Island               x
     South Carolina
     South Dakota               x
     Tennessee
________________________________________________________________
     Texas
     Utah                    Optional                  x
     Vermont
     Virginia                1/ x                   Optional
________________________________________________________________
     Washington
     West Virginia              x                      x
     Wisconsin
     Wyoming                    x                      x
     Puerto Rico                                   None Issued
________________________________________________________________
 
1  The Social Security number is the license or card number.
2  Not mandatory.  When supplied, the Social Security number
   becomes the license number in Georgia, Idaho, Iowa, and
   Montana.
3  Senior Citizens only.
   If given, the SSN is the card number.
 
 Source:  U. S. Department of Transportation Federal Highway
          Administration August 1988 Driver License
          Administration Requirements and Fees.
 
_____________________________________________________________________
                                                     ATTACHMENT 3
 
INVALID SOCIAL SECURITY NUMBERS
 
 1)  "Pocketbook Numbers".
 
     SSN 078-05-1120 was the first of many numbers now referred
     to as "pocketbook" numbers.  It first appeared on a sample
     Social Security Card contained in wallets sold nationwide
     since 1938.  Since then, it has been reported thousands of
     times on Wage Reporting System matches and taxpayer returns.
     People often thought that the number on the card was theirs
     and used it as they would a government-issued number.  There
     are now over twenty (20) different "pocketbook" SSNs, each
     used by some organizations displaying an actual number in
     their advertising.  The following are the most common
     "pocketbook" SSNs:
 
     022-28-1852             141-18-6941             212-09-7694
 
     042-10-3580             165-16-7999             219-09-9998
 
     062-36-0794             165-18-7999             306-30-2348
 
     078-05-1120             165-20-7999             308-12-5070
 
     095-07-3645             165-22-7999             468-28-8779
 
     128-03-6045             165-24-7999             549-24-1889
 
     135-01-6629             189-09-2294             987-65-4320