2000 International Residential Code

U.S. Department of Housing and Urban Development
Washington, D.C. 20410-8000

February 18, 1999

OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISIONER

MORTGAGEE LETTER 99-3

TO: ALL APPROVED MORTGAGES

SUBJECT: Single Family Loan Production – Revised Subterranean Termite Treatment Builder’s Certification and Guarantee

The Department is changing its requirements for the builder’s warranty against termite infestation in new homes. Builders now must warrant against termite infestation in new homes for one year, a period of time that is in line with the terms of the other warranties the builder provides.

The Department has worked with the National Pest Control Association (NPCA) while developing this revised policy, and NPCA has now revised its form NCPA-99a, Subterranean Termite Treatment Builder’s Certification and Guarantee, to reflect this change. This form also clarifies the responsibilities of the pest control operator and the builder and accepts the use of EPA registered baits and wood treatments as termite protection. Mortgagee Letter 97-40 instructed lenders that form NPCA-99b, New Construction Subterranean Termite Soil Treatment Record, must be used in conjunction with form NPCA-99a. The new instruction is that form NPCA-99b is used with form NPCA-99a only if the property is treated with a soil termiticide. The licensed pest control company is responsible for attaching the forms together and distributing the completed forms to the lender. There is no change to the requirement that the lender provides one copy to the buyer at closing and includes a copy in the HUD endorsement bid. If a state has more stringent record keeping requirements than form NPCA-99a, the state form must be used.

Copies of the revised NPCA-99a and the current NPCA-99b are attached. Both forms can be obtained from the National Pest Control Association, located at 8100 Oak St., Dunn Loring, VA 22027, and other forms of suppliers. NPCA-99a and NPCA-99b are not HUD forms and therefore are not available from HUD or the Government Printing Office. This new form may be used immediately; however, its use is mandatory 90 days from the date of this Mortgagee Letter.

The information collection requirement of these forms have been approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. Chap. 35). The OMB number issued for this requirement is 2505-0520. The volume of information collected is not being changed.