Mortagee Letter 2012-11

On June 20, 2012, the U.S. Department of Housing and Urban Development published Mortgagee Letter 2012-11 that will take effect on Wednesday, August 1. ML 2012-11 will supersede portions of ML 2002-19 and provides clarification on title approval at the time of conveyance, specifically as it pertains to:

  • Unpaid taxes
  • Condominium Homeowners’ Association Fees
  • Unpaid utility bills
  • Manufactured Housing TitlesAll other requirements within ML 2002-19 remain in effect:
    • Internal Revenue Liens
    • Code Violations
    • Property Condition at Conveyance

    The effective date is Wednesday, August 1, 201227011A

Claims that are submitted beginning August 1 must meet the new requirements.
Key Changes for Mortgagees:

  • Mortgagees must pay all outstanding taxes, HOA fees and utility (water, sewer, electric, gas, waste, etc.) charges up to the date of conveyance.
  • Mortgagees must provide statements in the Mortgagee Comments section of the 27011A to certify that 1) payment(s) was (were) made, amount(s) and 2) the time period(s) covered.
  • Documentation to support all payments must be included with the 27011A submission. See page 4 for examples of acceptable documentation.
  • A property that conveys with outstanding fees still owed to the taxing jurisdiction or HOA may result in reconveyance of the property back to the Mortgagee.
  • Title evidence for manufactured housing must be documented in the Mortgagee Comments section of Form 27011A.Special Note: Extensions of Time will not be granted in order for Mortgagees to gather supporting documents or provide final payments to these agencies.

    HUD Field Service Managers – please continue to send outstanding HOA and/or utility bills for review to: The MCM staff reviewing the incoming email requests will distribute internally as appropriate.

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