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

September 4, 1985
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
MORTGAGEE LETTER 85-18
TO:   ALL APPROVED MORTGAGEES
SUBJECT:   Availability of Mortgagee's Records for
           Departmental Review
 
      This Mortgagee Letter restates and clarifies HUD
requirements on the responsibility of approved mortgagees to make
their records concerning HUD/FHA insured mortgages available to
the Department when requested.
 
      The Department has recently experienced some difficulty in
obtaining complete records from some approved mortgagees for
monitoring purposes.  The availability of records is essential to
our efforts to properly monitor a mortgagee's origination and
servicing performances in the mortgage insurance programs.  24 CFR
203.2(a)(9) of HUD's regulations and the Application for
Approval as Mortgagee (HUD Form 92001) require mortgagees to
submit such information as the Department may request and permit
an examination of their records relating to their insured mortgage
activities.  The reporting and recordkeeping requirements have
been approved by the Office of Management and Budget (OMB), and
have been assigned OMB clearance number 2502-0005.
 
      This requirement includes all servicing information and data
(e.g., computer print-out of 30-60-90+ day delinquencies) and the
entire loan origination file.  If records are not physically
available when requested, they must be retrievable within a
reasonable period of time.  In this regard, HUD expects mortgagees
to maintain their records and files in such a manner that a
Departmental request for information made by HUD staff during a
monitoring review can be satisfied within a 24-hour period.  If
the records are on microfilm, mortgagees are reminded that
paragraph five of Mortgagee Letter 81-l4 , dated April 9, 1981,
requires them to make available to HUD staff readable hard copies
of the microfilmed material.  These copies must also be available
within 24 hours of request.
 
      Your cooperation with the foregoing will assist us in
maintaining an effective monitoring program.
 
      All questions concerning this letter may be directed to
William Heyman, Director, Monitoring Division, (202) 755-6830.
 
                       Sincerely,
 
                       Janet Hale
                       Acting General Deputy Assistant Secretary
                         for Housing-Federal Housing Commissioner
 
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