U.S. Department of Housing and Urban Development

H O U S I N G

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Special Attention of:

Regional Directors of Housing Notice H 90-71 (HUD)

Directors of Housing

Field Office Managers Issued: 9/20/90

Directors of Housing Management Expires: 9/20/91

Chiefs of Property Disposition ______

Branch Cross References:

Chiefs of Loan Management Branch

Supervisory Single Family Loan

Specialists

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Subject: Maintenance of the Claims Without Conveyance of Title

(CWCOT) Case Files

In line with the Department-wide effort to reduce the number

of files maintained in-house, this is to advise that all CWCOT

case files shall be set up in the same manner as the acquired

property binders in the Property Disposition Branch.

In adopting this set up, if the CWCOT processed property is

subsequently conveyed to HUD, the Property Disposition Branch

will request the CWCOT file from the Loan Management Branch to

maintain while the property is in the Department's inventory of

acquired properties. When the property is sold, the file shall

be disposed of, in accordance with the records disposition

schedule for Single Family Properties acquired by the Secretary

and sold, one (1) year after the sale of the property.

Further disposition of CWCOT case files shall be as follows:

(1) files on properties sold to third parties at the

foreclosure sale shall be transferred to the Federal

Records Center one (1) year after termination of the

mortgage insurance, and

(2) files in which the property has been retained by the

mortgagee or redeemed by the mortgagor shall be

transferred to the Federal Records Center one (1) year from

the termination of mortgage insurance.

The Record Center destroys these records six (6) years after

the sale of the property, termination of the mortgage insurance,

or upon conclusion of any and all disputes (i.e., deficiency

judgment cases), whichever is later as per records disposition

instructions in Handbook 2225.6 REV-1. Language in this section

shall be added to cover the CWCOT files.

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HSISI : Distribution: W-3-1, W-2(H)(OGC)(Z), W-3(A)(H)(ZAOO), W-4(H), R-1,

R-2, R-3, R-3-1(H)(RC), R-3-2, R-3-3, R-6, R-6-1,

R-6-2, R-7, R-7-1, R-7-2, R-8, R-8-1, W-1(H)

Previous Editions Are Obsolete HUD 21B (3-80)

GPO 871 902

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The Loan Management Branch staff must set up future CWCOT

case files in accordance with the acquired property binder files.

Also, Loan Management and Property Disposition Branch staffs must

coordinate the effort to consolidate the existing CWCOT files

with the acquired property binders and dispose of them accordingly.

Very sincerely yours,

Arthur J. Hill

Acting Assistant Secretary for Housing

- Federal Housing Commissioner

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