Form HUD-9807 Insurance Termination Request for Multifamily Mortgage

Insurance Termination Request
for Multifamily Mortgage

U.S. Department of Housing
and Urban Development
Office of Housing
Federal Housing Commissioner

OMB Approval No. 2502-0416
(exp. 09/30/2012)

Applicant must read all of the Instructions on back before completing this form
1. Type of Request (Place an X in those that apply)
Co-Insurance
Date Deed Recorded, (mm/dd/yyyy) _______________
Mortgagee intends to file a claim
Mortgagee does not intend to file a claim
Prepayment Termination - Mortgage Paid in Full
Voluntary Termination-Attach credit instrument
Mortgagor Redeems Property After Foreclosure
3rd Party Acquires Property At Foreclosure Sale

Full Insurance
Prepayment Termination: Mortgage is paid in full and original credit
instrument is canceled.
Voluntary Termination: Attach the original credit instrument for
cancellation of insurance endorsement.

2. Date of This Request (mm/dd/yyyy)

3. FHA Project Number

4. Mortgagee's Loan No. (if any)

5. Date of Prepayment in Full,if applicable (mm/dd/yyyy) 6. Original Amount of Mortgage

7. Maturity Date (mm/dd/yyyy)

8. The following items are attached, or the statements are applicable:
Certified or cashier's check for $100 for redemption of the preferred stock issued
to FHA/HUD by the mortgagor corporation plus any due and unpaid dividends.

9. Program Information. Check a Yes or No on each of the following:
Yes No

Original Credit Instrument. See Item 1, above.
Prior Approval to Terminate, if required (See reverse)
Certifications:

I certify that no dividends are due.

Nonprofit
Receiving Rent Supplement
Receiving Section 8 Payments
Limited Distribution

I certify that the amount remitted with this form is the full amount due.

The undersigned certifies that the information shown above is true and correct, and the undersigned agrees that upon request of
HUD it will furnish documents
to support the responses shown above.
Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 10 10, 1012; 31 U.S.C. 3729, 3802)
10. Name and Signature of Mortgagors (Complete only if this is a voluntary termination.) 11. Project Name
(If corporate, give name of corporation and title of authorized officer who signs.)

12. HUD Holding Mortgagee Number (To be completed in all instances)

13. HUD Servicing Mortgagee Number (To be completed only ifsubmitted by servicer)

14. Name, Address and Zip Code of Holding Mortgagee (To be completed in all instances)15. Name, Address and Zip Code of Mortgagee's Servicer (To be completed only if
submitted by servicer)

16. Signature of Holding Mortgagee's Authorized Representative

Title of Holding Mortgagee's Authorized Representative

17. Signature of Servicing Mortgagee's Authorized Officer

Title of Servicing Mortgagee's Authorized Officer

For HUD Use Only: The contract of insurance, as identified above, has been terminated in accordance with this request and HUD regulations.
The original document, showing cancellation of the HUD insurance endorsement, is attached.
A refund of unearned insurance premium in the amount of $
has been aut horized for the account of the mortgagor
and a U.S. Treasury check will be sent to your office. This refund and any HUD premium held in escrow may be credited or return ed to the borrower.
Date Document Received (mm/dd/yyyy)

Previous editions are obsolete.

Effective Date of Termination (mm/dd/yyyy)

Signature of Designated HUD Official

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Date (mm/dd/yyyy)

form HUD-9807 (06/2003)
ref. Handbook 4350.4

Instructions
Step 1. If the property has 221(d)(4), 231(profit motivated mortgagor) or
213 mortgage insurance, proceed to Step 4.

U.S. Department of HUD
Office of Multifamily Portfolio Management, Room 6160
451 Seventh Street, S.W.
Washington, D.C., 20410

Step 2. If the property is subject to HUD insured or HUD held subordinate
debt, the debt must be fully satisfied before prepayment of the first
mortgage or termination of the mortgage insurance will occur.
Such insurance programs include 241(a), 241(f), or Partial Payment of Claim. Proceed to Step 3.
Step 3. If requesting prepayment of the property’s mortgage, and HUD
consent is required by the mortgage documents and/or the regulations or not, you must; (Prior to submitting form HUD-9807)
A. Look at the list of the following programs on HUD web site
__________________________ which have received a:

E. Upon receipt of the above information, the Office of Multifamily
Portfolio Management in Washington, D.C. will review it and
respond in writing, either approving, disapproving or with
conditions, the request to prepay. This approval is good for a
period of ninety days.
Step 4. Before completing this step, be sure that:
A. All amounts due HUD, including mortgage insurance premiums
and/or late charges and interest, are paid up to date.

(1) Flexible subsidy or Help Loans. While as a general rule,
HUD consent is required for prepayment, there are cases
where the mortgage note is silent. In those cases, consult
the Office of Portfolio Management in Headquarters.

B. You meet the criteria under step 1 or 2, or you received
approval to prepay under step 3, from the Office of Portfolio
Management-Headquarters, and
C. Prepayment has actually taken place. Once prepayment
has occurred, you are to submit the following information to the
address or fax number listed below:

(2) Rent Supplement Contract.
(3) Partial Payment of Claim.
(4) Portfolio Reengineering.

(1) Insurance Termination Request for Multifamily Mortgage,
Form HUD-9807, properly executed and signed by a corporate
officer.

B. Not on the web site list but also requiring prior approval of HUD
are:
(1) Section 231, 232, 236 or 221(d)(3) properties;

(2) Copy of Portfolio Management’s approval letter.

a. That are not more than 20 years from the date of final
endorsement,

(3) Copy of the property’s mortgage note(s), rider(s), and
agendums.

b. Originally owned by non-profits due to their 40 year lockin restriction, or

(4) If FHA/HUD owns preferred stock of the mortgagor
corporation, a certified or cashiers check made payable to
the U.S. Department of Housing and Urban Development
for $100 plus due and unpaid dividends should accompany
the correspondence.

c. Originally an LD and sold to NP.
(2) Section 207/223(f).
a. According to the 223(f)(3) of the National Housing Act,
five years must have elapsed since the date of final
endorsement, or

(5) For Voluntary termination only, the
original credit
instrument must be submitted to the address below for
cancellation of the HUD insurance endorsement.Both the
servicer and mortgagor must sign the form-9807

b. If purchased by GNMA pursuant to Section 305 of the
National Housing Act, 20 years must have elapsed since
the date of final endorsement.

U.S. Department of HUD
Insurance Operations Branch
P.O. Box 44124
Washington, D.C. 20026-4124

C. If the property is in any of the above categories, and has not
received HUD consent, it is not eligible to prepay and
no
further action can occur. Proceed no further.
D. If the property is not one of the categories listed above,it may
or may not be eligible to prepay and you are to submit the
following information to the address below:
(1) A written request for prepayment
(2) A copy of the mortgage note(s), rider(s) and agendums
(3) Owner’s requested prepayment date, if known
(4) A written statement that a copy of the above information has
been sent to the HUD Field Office with jurisdiction for the
property.

Or, by Fax: (202) 401-3246
Step 5. After the contract of mortgage insurance has been terminated by
HUD, a signed copy of the Form HUD-9807, together with a letter
indicating whether a refund is due the mortgagor or funds are due
HUD, will be returned to the mortgagee.
For a voluntary termination, cancellation of the HUD insurance
endorsement will be effective on the date all requirements are
met. The original credit instrument that was submitted will be
returned to the mortgagee by Certified/Overnight Mail.

Public reporting burden for this collection of information is estimated to average 7 minutes per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and
reviewing the collection of information. This information is required to obtain benefits and is mandatory. HUD may not collectthis
information, and you are not required to complete this form, unless it displays a currently valid OMB control number. Anyone with
comments regarding this burden estimate or any other aspect of this information collection, including suggestions for reducing this
burden, may call Field Asset Management Division (202) 708­3730.
Section 24 CFR 207.253(a) and (b) states that notice of the prepayment of the mortgage or loan shall be given to the
Commissioner on a form prescribed by the Commissioner within 30 days from the date of the prepayment. The Section also
states that the original credit instrument for cancellation of the insurance endorsement and the remittance of all sums to which
the Commissioner is entitled shall accompany this form. While no assurances of confidentiality are pledged to respondents,
HUD generally discloses this data only in response to a Freedom of Information request.
Previous editions are obsolete.

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form HUD-9807 (06/2003)
ref. Handbook 4350.4