FHA Condo Approvals – Issues with Up-Front MIP
Technology is very cool and we don’t often realize how much work goes into large systems such as HUD’s or the Department of the Treasury. Here is an example where HUD was experiencing an issue with the Department of the Treasury because of one silly little symbol.
In a recent newsletter, HUD announced that it recently became aware that the Department of the Treasury was rejecting payment of up-front mortgage insurance premiums where the ampersand (&) character was in the account holder names.
If this character was used, users would receive the following message on the Title II Upfront Payment History Screen:
“Processing error; contact SF Admin Help Desk”
The Department of the Treasury will not have a solution in place until July 14, 2013.
HUD has developed a permanent work-around by removing the ampersand character from the name field.
HUD is suggesting that lenders with loans impacted by this error to do the following:
· Re-submit the up-front MIP payment in FHA Connection
· If an up-front payment (A80R) is rejected because of a duplicate payment, please re-submit it and add one cent to the amount
· If late charges need to be added to the payment to make them go through, then add the late fee of 4%. HUD will adjust late charges for those who originally submitted on time and will process refunds once the payments have been reflected in the system.
Now, be honest: how many of you knew that this character “&” was called an ampersand? If you did, you should pin a gold star on your shirt!
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