FHA Single Family Housing Policy Handbook 4000.1, IV. CLAIMS AND DISPOSITION > A. Title II Claims > 1. Claim Submission Process — c. Claim File

HUD Handbook 4000.1 IV.A.2

Effective 2024-08-19 · publisher's stamp for this provision

c. Claim File (08/19/2024) i. Standard For each claim filed, the Mortgagee must maintain evidence of compliance with HUD’s servicing requirements. In addition to retaining the documentation required in the Servicing File, the Mortgagee must include the following documentation in its Claim File: • Default servicing documentation, including: o communication with Borrowers and with HUD; o required notices; o evidence of evaluation under HUD’s Loss Mitigation Program, including 90- Day Reviews; o documentation evidencing the Mortgagee’s compliance with HUD’s reasonable diligence requirements; o documentation justifying any delays in meeting HUD time frames; and o if applicable, documentation relating to compliance with federal or state prohibitions or delays; • claims and/or conveyance documentation, including: o a copy of the first public legal action to initiate foreclosure with the date the action was taken; o a copy of the foreclosure deed recorded by the local recording authority with the date of recordation; o a copy of the first public legal action to initiate eviction, if applicable; o all documentation pertaining to bankruptcy, if applicable; o a copy of the deed or assignment with the date of recordation, along with a copy of the transmittal letter, if the deed or assignment was sent to a recording authority; o a copy of the Mortgage Insurance Certificate (MIC); o a copy of the mortgage Note and modification, if applicable; o the title approval letter, if applicable; o the title submission certification, for assignments only; o evidence showing that the certificate of title to the Manufactured Home is properly retired; o invoices and receipts or other documentation of payment made supporting all disbursements for which reimbursement is claimed. Where the Mortgagee made such disbursements in bulk, the documentation must reflect the specific disbursements made for each mortgage; o all loan servicing and transaction records (e.g., escrow history, payment history, transaction codes, collection notes, etc.) dated on or after the last complete installment date, as reported in Item 8 of Part A, form HUD-27011; o all property inspection reports (e.g., initial, occupied, and vacant); o any photographs needed to support P&P expenses and evictions; o written responses from HUD’s MCM regarding approval of extensions or expenses; o documentation to support any extensions in Items 19, 20, and 21 of Part A, form HUD-27011, if applicable; o a copy of the buydown and rental agreements; o Advice of Payment letters or claims billing statements, if applicable; o evidence of hazard insurance coverage and flood insurance coverage, if applicable; ▪ the evidence must include the name and address of the insured, the coverage type, coverage limits and deductibles, the covered period, the premium amount, and, if applicable, state-mandated surcharges; o documentation supporting the refund or estimated refund of hazard insurance premiums, if applicable; o a copy of any appraisals; o a copy of the calculation of the Commissioner’s Adjusted Fair Market Value (CAFMV); o a copy of the wire or canceled check for CWCOT and PFS claims; o a copy of the Closing Disclosure, if applicable; o for claims involving Reconveyance and reacquisition, evidence that the title or property issue requiring Reconveyance has been corrected; and o all parts of the claim form, schedules, attachments, and any other supporting documents. ii. Record Retention Period The Mortgagee must retain this documentation for at least seven years after the final claim or latest supplemental claim settlement date: • The final settlement date is the date of the last acknowledgment or payment received by the Mortgagee in response to the submission of a claim. In certain cases, the acknowledgment may be in the form of a bill. • The supplemental settlement date is the date of the final payment or acknowledgment of such supplemental claim. In certain cases, the acknowledgment may be in the form of a bill. iii. Electronic Storage The Mortgagee may use electronic storage methods for all required servicing and claim- related documents where retention of a hard copy or original document is not required. iv. HUD Requests for Information The Mortgagee must make available to HUD electronic copies of identified claim files within 24 hours of a request, or as otherwise requested by HUD. HUD may charge a fee for the review of a Claim File that is not provided to HUD when requested. v. Missing Claim Files If the Mortgagee is unable to produce the Claim File at HUD’s request during the record retention period, HUD may consider all amounts for expenses and interest to have been paid in error. 2. Claim Types Mortgagees may submit the following claim types for Single Family forward Mortgages.

Source: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12) · source URL · snapshot e1bca3432cf19e09