4155 2_12_secBx 703i/203 Huddoc?id=4155 2 12 Sec B

User Manual: 703i/203

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

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