Washington, DC – HUD announced in three seperate letters to lenders that it will temporarily cease endorsing any new single family mortgages and some mutifamily mortgages that are to be insured under either the General Insurance (GI) Fund or the Special Risk Insurance (SRI) Fund.

• Mortgagee Letter 03-13: Temporary Suspension of FHA Multifamily Commitments- Credit Cap Limitation
• Mortgagee Letter 03-14: Temporary Suspension of General Insurance and Special Risk Insurance Endorsement Authority
• In Title I Letter 474 The Department also announced a "Temporary Suspension of Authority to Insure Under Title I of the National Housing Act."

The temporary suspension is effective on or after September 16, 2003.

The action will remain in effect until the enactment of supplemental commitment authority for FY 2003 or new commitment authority for FY 2004. Lenders were advised that they should continue to submit loan manifest forms in a timely fashion in order to protect the ability to register the loans for insurance in the future.

Source: HUD