4155 2_12_secBx 703i/203 Huddoc?id=4155 2 12 Sec B
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HUD 4155.2 Chapter 12, Section B Section B. System Code and Error Exhibits Overview In This Section This section contains the topics listed in the table below. Topic 1 2 3 4 Topic Name Exhibit 1: Home Mortgage ADP Codes Exhibit 2: Program Identification Codes Exhibit 3: FHA Common System Errors and Documentation Problems Exhibit 4: PETR Deficiency Codes See Page 12-B-2 12-B-8 12-B-12 12-B-15 12-B-1 Chapter 12, Section B HUD 4155.2 1. Exhibit 1: Home Mortgage ADP Codes Change Date March 1, 2011 4155.2 12.B.1.a ADP Codes The table below lists the Automated Data Processing (ADP) codes commonly used in processing FHA-insured home mortgages, presented according to the Section of the National Housing Act under which the loans are insured. Notes: The column entitled “ADP Code If Pursuant to 223(e)” refers to the code for mortgages insured pursuant to Section 223(e), which are all obligations of the Special Risk Insurance (SRI) Fund. The column entitled “ADP Code for HUD” refers to the code for FHAprocessed cases. Section of the Act Description ADP Code for DE ADP Code for VA-CRV 203(b) Basic Home Mortgage Insurance ARM Fannie Mae (FNMA) Direct Financing HHL Alternate GPM HHL/ARM Site Condominium (ARM) Site Condominium 703 729 --- 503 529 550 759 761 780 731 734 --561 ------- ADP Code If Pursuant to 223(e) 303 ----- ADP Code for HUD 203 229 250 --- 259 261 280 203 203 ------- Continued on next page 12-B-2 HUD 4155.2 Chapter 12, Section B 1. Exhibit 1: Home Mortgage ADP Codes, Continued 4155.2 12.B.1.a ADP Codes (continued) Section of the Act 203(b) 203(b)/ 283(c) 203(b)/ 283(c) 245(a) Description VA-CRV 223(e) Mortgage IL IL/ARM HHL/Interest Buy-Down (IBD) 223(e) ARM IL (Salamanca, NY) Refinance of Borrower in Negative Equity Position Refinance of Borrower in Negative Equity Position (ARM) MIA/Alternate GPM MIA MIA/GPM ADP Code for DE ADP Code for VA-CRV ADP Code for HUD --583 588 ----591 --- ADP Code If Pursuant to 223(e) 392 ------------- 792 783 788 811 829 --821 822 --- --- --- --774 776 568 574 576 --374 --- 268 274 276 283 288 411 --291 --- Continued on next page 12-B-3 Chapter 12, Section B HUD 4155.2 1. Exhibit 1: Home Mortgage ADP Codes, Continued 4155.2 12.B.1.a ADP Codes (continued) Section of the Act 203(b)/ 245(a) 203(k) 203(k) 203(k)/ 245(a) 203(n) 203(n)/ 245(a) 213 220(d)(3) 220(h) Description ADP Code for DE ADP Code for VA-CRV 541 ADP Code If Pursuant to 223(e) 341 ADP Code for HUD 241 GPM/GEM 741 GPM/IBD GPM GPM/IL/GEM GPM/IL GPM/HHL Rehabilitation Home Mortgage Insurance Escrow Commitment ARM Second Lien IL 223(e)/DE Condominium HHL/IBD Energy Efficiency Mortgage (EEM) HHL Condominium/IBD IBD Condominium/ARM GPM/GEM 763 770 782 787 793 702 563 570 582 587 --502 ----------302 263 270 282 287 293 202 707 730 753 801 802 804 805 807 --530 553 --------507 ----353 --------307 207 230 253 401 --404 405 --- 808 812 813 815 754 --------554 ----------- 408 412 413 415 254 Cooperative – Individual Unit GPM/GEM ----- 560 547 360 --- 260 247 Cooperative – Sales – Type Releases Urban Renewal Improvements --- 513 313 213 720 719 520 519 320 --- 220 219 Continued on next page 12-B-4 HUD 4155.2 Chapter 12, Section B 1. Exhibit 1: Home Mortgage ADP Codes, Continued 4155.2 12.B.1.a ADP Codes (continued) Section of the Act 234(c) 234(c)/ 238(c)/ 245(a) 234(c)/ 238(c) 234(c)/ 245(a) 234(c) 235(r) REV 240 Description ADP Code for DE ADP Code for VA-CRV 534 ADP Code If Pursuant to 223(e) 334 ADP Code for HUD 234 Condominium 734 ARM Refinance of Borrower in Negative Equity Position Refinance of Borrower in Negative Equity Position (ARM) MIA/GPM 731 831 531 --- ----- 231 --- 832 --- --- --- 777 577 --- 277 MIA/Alternate GPM --- 569 --- 269 GPM/GEM GPM Alternate GPM Homeownership Assistance/Refinance Refinance of Ten-Year Subsidy Mortgage Refinance (Special Allocation No. 1) Refinance (Recap/Special Allocation No. 1) Refinance (Recap/Other than Special Allocation No. 1) Fee Simple Title 742 771 762 765 542 571 562 --- 342 ------- 242 271 262 165 746 --- --- 146 755 --- --- 155 756 --- --- 156 766 --- --- 166 740 540 --- 240 Continued on next page 12-B-5 Chapter 12, Section B HUD 4155.2 1. Exhibit 1: Home Mortgage ADP Codes, Continued 4155.2 12.B.1.a ADP Codes (continued) Section of the Act 255 Description HECM Assignment/Fixed (HECM Standard) HECM Assignment/ARM (HECM Standard) HECM Shared Premium/Fixed HECM Shared Premium/ARM HECM Shared Appreciation/Fixed HECM Shared Appreciation/ARM HECM Condominium/Fixed (HECM Standard) HECM Condominium/ARM (HECM Standard) HECM Assignment/Fixed (HECM Saver) HECM Assignment/ARM (HECM Saver) HECM Condominium/Fixed (HECM Saver) HECM Condominium/ARM (HECM Saver) ADP Code for DE ADP Code for VA-CRV --- ADP Code If Pursuant to 223(e) --- ADP Code for HUD 911 951 952 --- --- 912 953 954 955 ------- ------- 913 914 915 956 --- --- 916 957 --- --- 917 958 --- --- 918 971 --- --- 972 --- --- 977 --- --- 978 --- --- Continued on next page 12-B-6 HUD 4155.2 Chapter 12, Section B 1. Exhibit 1: Home Mortgage ADP Codes, Continued 4155.2 12.B.1.a ADP Codes (continued) Section of the Act Description All MMI Sections-3% Other Sections - Downpayment Program (3% DPMT) MIA All GI Section-3% DPMT Other Sections-MIA All MMI Sections-IBD excluding 245(a) All GI Sections-IBD All SRI Sections-IBD ADP Code for DE ADP Code for VA-CRV 548 ADP Code If Pursuant to 223(e) 348 ADP Code for HUD 248 748 749 779 796 549 579 596 349 379 --- 249 279 296 797 798 597 598 --398 297 298 12-B-7 Chapter 12, Section B HUD 4155.2 2. Exhibit 2: Program Identification Codes Change Date December 23, 2010 4155.2 12.B.2.a Program Identification Codes The table below describes the Program Identification Codes used to identify special programs. These codes also apply when insurance is pursuant to Section 223(e), Department of Veterans Affairs Certificates of Reasonable Value (VA-CRV), and Direct Endorsement (DE) cases. Code 01 02 03 04 05 06 07 08 09 Program Section 203(b) (9) Section 203(h) Sections 203(i) &222 Section 203(i) For all home mortgage transactions pursuant to Section 223(a) involving public housing properties sold by Federal, State, or local governments, or agencies thereof. For all home mortgage and home improvement loan transactions involving properties located in redevelopment or urban renewal areas. Section 809 Description Housing for the elderly Disaster housing Low-cost housing in suburban area (Obsolete) Farm homes on 5 or more acres (Obsolete) Reserved for inactive program Reserved for inactive program Inactive --- Case not guaranteed by the military Inactive Note: Code 00 will be applicable for guaranteed cases. Continued on next page 12-B-8 HUD 4155.2 Chapter 12, Section B 2. Exhibit 2: Program Identification Codes, Continued 4155.2 12.B.2.a Program Identification Codes (continued) Code 10 11 Program Sections 203(b) (2) & 234(c) Section 809 12 13 14 Sections 220(d)(3) Sections 203, 220, & 809 15 16 17 18 19 20 21 22 All home mortgage, home improvement, and fee simple title loan transactions Description Housing for veterans Special veteran provision, guaranteed Inactive Special veteran provision, not guaranteed Inactive Special veteran provision Veteran in urban renewal area Inactive Veteran in model city area Inactive Veteran in model city area in urban renewal area Inactive Veteran in periphery of model city area Inactive Veteran in periphery of model city area in urban renewal area Inactive Located in model city area Inactive Veteran in periphery of model city area in urban renewal area Inactive Veteran in periphery of model city area Inactive Veteran in periphery of model city area in urban renewal area Inactive Continued on next page 12-B-9 Chapter 12, Section B HUD 4155.2 2. Exhibit 2: Program Identification Codes, Continued 4155.2 12.B.2.a Program Identification Codes (continued) Code 23 Program Sections 235(i) & 235(i) REV 24 25 26 27 28 29 30 Section 235(i) REV Section 234(c) 31 35 36 40 46 Sections 235(i) & 235(i) REV All home mortgage transactions involving construction/perm properties including manufactured homes All home mortgage sections Description Family unit in condominium Family unit in condominium in urban renewal area Inactive Family unit in condominium in model city area Inactive Family unit in condominium in model city area in urban renewal area Inactive Family unit in condominium in periphery of model city area Inactive Family unit in condominium in periphery of model city area in urban renewal area Inactive Family unit in a cooperative project Resale of a conventionally financed unit – veteran Inactive Resale of a conventionally financed unit – non-veteran Inactive Cases originated by Department of Agriculture Secretary-held sale - substantial rehabilitation Indian claims area Continued on next page 12-B-10 HUD 4155.2 Chapter 12, Section B 2. Exhibit 2: Program Identification Codes, Continued 4155.2 12.B.2.a Program Identification Codes (continued) Code 48 50 51 52 Program Sections 203(b), 203(b)ARM, 203(b)/245(a), 203(k), 203(k) – ARM, & 203(k)/245(a) Sections 203(b), 203(k) 203(n), 233, 244, & 245 Sections 203(b), 203(k), 203(n), 233, 244, 245, & 809 All home mortgage sections 53 60 65 70 All home mortgage sections except 222 & 235 Section 245(a) 77 All home mortgage sections 88 90 Section 8 Sections 203(b), 203(b)ARM, 203(b)/245(a) GPM, & 203(b)/245(a) – GPM/GEM All cases not in program codes shown above 00 Description Indian Reservations Note: Obsolete; Section of the Act ADP Codes now apply. Solar Energy dwellings for veterans Solar Energy dwellings for nonveterans IBD provision State-purchase property mortgages formerly Secretary-held (Inactive) Subject to Section Trust Shared Equity mortgages Obsolete: Section of the Act ADP Codes now apply Manufactured Housing NOT processed as construction-permanent loans Section 8 Homeownership Programs Operative Builder Firm Commitment --- 12-B-11 Chapter 12, Section B HUD 4155.2 3. Exhibit 3: FHA Common System Errors and Documentation Problems Change Date December 23, 2010 4155.2 12.B.3.a Common System Problems The table below describes common FHA system errors, and provides information for their resolution. When the Problem Error Message is ... Mortgage Amount cannot exceed $XXXX for a value of $YYYYY Monthly P&I not within acceptable range of $XXX.XX to $YYY.YY Mortgage Amount exceeds statutory limit Address mismatch (refinance) Then ... verify that the question MIP Financed? is correctly answered that the UFMIP amount is paid in the case the ADP code that the previous REO case is correct, and the mortgage amount and value entries. verify the mortgage term, and mortgage amount and interest rate entries. verify the number of units the county code that the question MIP Financed? is correctly answered, and if it is an Emergency Efficient Mortgage. verify the address with the one on the payoff statement, and that the old case number is the borrower’s, and contact the HOC for instructions if the error persists. Continued on next page 12-B-12 HUD 4155.2 Chapter 12, Section B 3. Exhibit 3: FHA Common System Errors and Documentation Problems, Continued 4155.2 12.B.3.a Common System Problems (continued) When the Problem Error Message is ... Borrower cited on CAIVRS Multiple Loans Borrower cited on Multiple Loans Then ... submit a print-out of a clear CAIVRS screen, if obtained at case number assignment and the borrower is cited later. research all case numbers cited, and provide updated status of each case in the binder. Note: If the property was sold, provide the HUD-1. 4155.2 12.B.3.b Common Documentation Problems The table below describes common documentation problems and provides information for their resolution. When the documentation problem message is ... Appraisal and HUD-92900-LT, FHA Loan Underwriting and Transmittal Summary information not entered in FHA Connection UFMIP and netted MIP incorrectly submitted UFMIP and netted MIP submitted late Second copy of appraisal not provided loose in binder Late letter and payment history not provided Missing ADP codes on appropriate documents and allonges Then ... prior to shipment, verify that the information in the system is for the correct case number. verify that the transmission references the correct numbers. verify ten (10) days of closing. ensure that one appraisal is fastened, and one is loose. this means that the late letter and history are required as of the 60th day, if not received by the HOC. verify that the case numbers have the appropriate codes included. Continued on next page 12-B-13 Chapter 12, Section B HUD 4155.2 3. Exhibit 3: FHA Common System Errors and Documentation Problems, Continued 4155.2 12.B.3.b Common Documentation Problems (continued) When the documentation problem message is ... 203(k) cases not closed out in system prior to refinance Case number not in binder 92900a not completed and appropriately signed HUD-1 and HUD-1 Addendum not signed and dated by all parties 12-B-14 Then ... follow the close-out procedures prescribed by the HOC. verify the case number. review the form for proper signatures. review the forms for proper signatures, particularly the seller and settlement agent. HUD 4155.2 Chapter 12, Section B 4. PETR Deficiency Codes Change Date December 23, 2010 4155.2 12.B.4.a PETR Deficiency Codes When conducting the Post Endorsement Technical Review (PETR), the FHA reviewer assigns one or more technical review reason deficiency codes from the table below to identify the risk element, documentation deficiency or processing error present in the loan. Code AU01 CH03 Category Automated Underwriting Systems/TOTAL Automated Underwriting Systems/TOTAL Automated Underwriting Systems/TOTAL Credit History CH10 CH21 Credit History Credit History CH40 Credit History CH41 Credit History CH42 CL32 Credit History Closing CL37 Closing DC10 Documentation DC11 DC12 Documentation Documentation DC13 Documentation AU02 AU05 Deficiency Data integrity deficiencies. File documentation does not support Accept/Approve decision in AUS. Documentation does not support credit waivers of AUS. AUS invalid or missing. Mortgage verification missing, mortgage not current, or mortgage history not satisfactory. Credit report unacceptable source or format. Concerns related to bankruptcies, judgments, liens and/or foreclosures. Concerns related to poor credit pattern, major derogatory credit and/or recent material inquiries. CAIVRS, LDP/GSA authorization and/or delinquent federal debt issued not properly documented or satisfied. Credit report or non-traditional credit not obtained or illegible. Unallowable, excessive costs/credit to borrower, or other HUD-1 inaccuracies. HUD-1, HUD-1 Addendum (if applicable), and/or Good Faith Estimate (GFE) missing, not the final copy, incomplete or illegible. Uniform Residential Loan Application (URLA) not properly completed or missing. Form HUD-92900-A not properly completed or missing. Quality of imaged documentation insufficient to permit review. Questionable documentation. Continued on next page 12-B-15 Chapter 12, Section B HUD 4155.2 4. PETR Deficiency Codes, Continued 4155.2 12.B.4.a PETR Deficiency Codes (continued) Code DC14 DC15 EQ01 EQ02 EQ03 EQ04 Category Documentation Documentation Eligibility & Qualification Eligibility & Qualification Eligibility & Qualification FD10 FD20 FD30 Eligibility & Qualification Eligibility & Qualification Eligibility & Qualification Eligibility & Qualification Funds Funds Funds FD60 Funds FP01 Flipping FP02 Flipping FP03 Flipping HM01 HECM HM04 HM05 HECM HECM EQ05 EQ07 EQ08 Deficiency Concerns related to electronic documents. Case binder indexing errors/deficiencies. Invalid Social Security number (SSN) or Tax Identification number (TIN). Legal residency for non-US citizens not adequately documented. Borrower not owner-occupant, property not principal residence, possible investor issues and/or eligibility requirement for principal residence not met (including identity of interest concerns). Qualifying ratios exceeded without acceptable compensating factors for manually-approved loans. Borrower deleted on streamline refinance loan without credit qualifying. Payoff demand missing for refinance transaction. Streamline refinance eligibility criteria not met. Unacceptable, unsupported or insufficient source of funds. Concerns related to assets derived from gift(s). Secondary financing: source or terms unacceptable, not documented or inadequately documented. Borrower did not make the required minimum cash investment (downpayment). Sales contract dated fewer than 91 days from acquisition date by seller. Requirements for properties sold within 91-180 days not documented. Waiver requirements not met to permit a property sales contract date less than 91 days with a sales price increase of 20% or greater above the seller’s acquisition cost. Borrower not eligible or eligibility not established/documented. Counseling requirement not satisfied/acceptably documented. Anti-Churning Disclosure and/or supporting calculation missing or inaccurate. Continued on next page 12-B-16 HUD 4155.2 Chapter 12, Section B 4. PETR Deficiency Codes, Continued 4155.2 12.B.4.a PETR Deficiency Codes (continued) Code HM06 HM07 HM08 Category HECM HECM HECM HM10 HECM HM11 HM12 HECM HECM HM13 HM25 HM26 IC02 IC20 IC22 HECM HECM HECM Income Income Income IC30 LA04 Income Liabilities LI01 LI Loans LI02 LI Loans MA04 PG10 Maximum Mortgage Amount Maximum Mortgage Amount Program PG20 PG30 Program Program PG40 Program MA05 Deficiency Loan Agreement missing, incorrect or illegible. Maximum Claim Amount incorrect. Acceptable title insurance commitment not provided/documented. Average Expected Mortgage Interest Rate (Expected Rate) incorrect. Principal limit incorrect. Payment Plant incorrectly calculated and/or disagrees with HUD-1. Excess servicing set-aside. Concerns related to repair set-aside. HECM for Purchase – no third party contributions exist. Income improperly calculated or from an unacceptable source. Income improperly documented. IRS Form 4506 or Form 8821 required, but missing, inaccurate or incomplete. Stability of income insufficient and/or unsupported. Obligations of borrower(s) (non-purchasing spouses included) omitted, inaccurate, unsupported, undisclosed and/or illegible. Lender Insured (LI) data integrity concerns: insured loan data entered in FHA Connection not supported by file documents. Documentation and/or compliance errors/concerns for LI case which were not resolved prior to insurance. Mortgage amount incorrect, LTV limit and/or statutory limit exceeded. Secondary Financing: maximum CLTV and/or statutory limit of combined mortgages exceeded. Concerns related to Hawaiian Homelands financing transactions. Concerns related to 203(k) mortgages. Concerns related to construction-to-permanent financing transactions. Concerns related to Energy Efficient mortgages. Continued on next page 12-B-17 Chapter 12, Section B HUD 4155.2 4. PETR Deficiency Codes, Continued PETR Deficiency Codes (continued) Code RH11 UW16 UW20 Category Rehab/ Construction Underwriting Underwriting UW22 UW23 Underwriting Underwriting VA01 Valuation VA02 VA03 Valuation Valuation VA04 Valuation VA06 VA07 VA08 VA13 VA14 Valuation Valuation Valuation Valuation Valuation VA15 Valuation VA17 Valuation VA18 VA20 VA22 Valuation Valuation Valuation VA23 VA24 Valuation Valuation Deficiency Inadequate description of improvements/costs. Excess cash back on No Cash-Out refinance. Purchase contract, Real Estate Certification and/or Amendatory Clause missing, illegible or incorrect. Concerns related to short sales and/or short payoffs. Concerns related to Help for Homeowners or other loan modification program. Concerns related to the Neighborhood, Site, and/or Improvements sections of the appraisal report. Illegal zoning. Existing construction in Special Flood Hazard Area (A or V Zone) without evidence of flood insurance. New Construction and/or Manufactured Home in Special Flood Hazard Area (A or V Zone) without LOMA, LOMR, or an elevation certificate with evidence of flood insurance. Property does not meet Minimum Property Requirements. Appraisal expired. Allowable commercial space in mixed-use property exceeded. Concerns related to Cost Approach of the appraisal report. Concerns related to Sales Comparison Approach section of the appraisal report. Concerns related to Income Approach section of the appraisal report. Concerns related to the Market Conditions Addendum to the appraisal report, including: missing, incomplete, incorrect and/or illegible. Owner of record not documented. Sales are not sufficiently comparable to the subject property. Form HUD-92800.5B substantially incomplete, incorrect or missing. Repairs not acceptably addressed. The Wood Destroying Insect Inspection report is missing or incomplete, or inadequate documentation exists to reflect that infestation was acceptably treated. Continued on next page 12-B-18 HUD 4155.2 Chapter 12, Section B 4. PETR Deficiency Codes, Continued 4155.2 12.B.4.a PETR Deficiency Codes (continued) Code VA25 Category Valuation VA26 Valuation VA27 Valuation VA29 VA30 VA34 Valuation Valuation Valuation VA36 VA41 Valuation Valuation VA42 Valuation VA43 VA44 V25A V26A V26B V26C V27A Valuation Valuation Valuation Valuation Valuation Valuation Valuation Deficiency Compliance inspections, certifications, or local government approvals are missing or incomplete. Form HUD-92051 or its equivalent is substantially incomplete or incorrect. Form HUD-92300, Mortgagee Assurance of Completion, is missing, incomplete and/or incorrect. Manufactured home does not meet eligibility guidelines. Value not supported. Newly-constructed or newly-rehabilitated home, does not meet requirements. Condo project not approved by DELRAP/HRAP. Concerns related to photos, map and/or sketch missing or illegible. Concerns related to the subject and contract section of the appraisal report. Responsibility for MPS repairs not detailed. Incorrect appraisal form used for property type. Manufactured home does not meet guidelines. Condo project, spot condo not approved. Condo 51% owner-occupancy not met. Condo – other deficiencies. Newly-constructed home does not meet requirements. 12-B-19
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