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a. Preparation and Submission of Claims (03/01/2023)
i. Who Can Submit Claims
The holding Mortgagee or the servicing Mortgagee must submit the claim. While authorized parties may prepare or submit the claim on behalf of the Mortgagee, HUD will only pay the claim as stated in Disbursement of Claim.
ii. Liability for Claims Filed
Mortgagees are liable for the contents of any claims filed. By submitting a claim, the Mortgagee certifies that the statements and information contained in the claim are true and correct.
HUD will prosecute false claims and statements and Mortgagees may be subject to criminal and/or civil penalties or other action.
iii. FHA Case Number
The Mortgagee must ensure that the FHA case number is on all Parts of form HUD- 27011, Single Family Application for Insurance Benefits, and on the cover page of any claims correspondence and documents sent to the Mortgagee Compliance Manager
(MCM) and HUD.
iv. Insured Mortgages
The Mortgagee may only submit a claim for a Mortgage that is insured by FHA.
v. Form HUD-27011, Single Family Application for Insurance Benefits
The Mortgagee must use form HUD-27011 to submit a claim for insurance benefits. Form HUD-27011 consists of the following five parts. See the Claim Filing Technical Guide for detailed information on completing this form.
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IV. CLAIMS AND DISPOSITION A. Title II Claims
1. Claim Submission Process
(A) Part A – Initial Application
The Mortgagee must submit initial case data through Part A for each claim. Part A includes information relating to the Mortgage, Property, property condition, Mortgagee, payment history, and the foreclosure or, if appropriate, the conveyance, assignment, Claims without Conveyance of Title (CWCOT), or Pre-Foreclosure Sale (PFS).
(B) Part B – Fiscal Data
The Mortgagee must submit fiscal data related to allowable expenses and accrued interest through Part B for each claim. Part B provides all summary information relating to receipts and disbursements incurred by the Mortgagee that affect the amount of insurance claim.
For all claims other than conveyance claims, the Mortgagee must submit Part B simultaneously with Part A.
(C) Part C – Support Document
Part C contains itemized information relating to disbursements for the Property Preservation and Protection (P&P). The Mortgagee must list disbursements for P&P expenses in chronological order in the Date Work Completed column and include an accurate description of the work performed on the Property in the Description of Service Performed column. Where applicable, the Mortgagee must prepare this document prior to completion of Part B.
(D) Part D – Support Document (Continuation 1)
Part D contains itemized information relating to such items as taxes, hazard insurance premiums, Mortgage Insurance Premiums (MIP), foreclosure costs, acquisition fees and costs, bankruptcy fees and costs, and other miscellaneous costs. Where applicable, the Mortgagee must prepare this document prior to completion of Part B.
(E) Part E – Support Document (Continuation 2)
Part E contains itemized information relating to closing costs found on the Closing Disclosure and amounts due from and to the buyer at closing. The Mortgagee must prepare Part E in order to claim allowable associated appraisal, administrative, and other closing costs for all claim types.
Where applicable, the Mortgagee must prepare this document prior to completion of Part B.
vi. Methods of Submission of Claims
Mortgagees must use one of the following methods to file claims.
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IV. CLAIMS AND DISPOSITION A. Title II Claims
1. Claim Submission Process
(A) Electronic Data Interchange
(1) Definition
The Electronic Data Interchange (EDI) is the electronic exchange of information between one or more business partners in a structured, machine-processable format that is transmitted directly from computer to computer.
(2) Standard
The Mortgagee may submit claims via EDI for all claims other than Loss Mitigation Home Retention incentive claims and supplemental claims.
(3) Electronic Data Interchange Technical Guidance
The Mortgagee may find information on using EDI in HUD’s EDI Implementation Guide.
(4) Application Advice and Error Correction
The Mortgagee may identify errors in their submissions by reviewing Transaction Set (TS) 824. The Mortgagee must take necessary corrective action, including correction or submission of documentation, within 60 Days of the generation of TS 824 to avoid deletion of its EDI claim.
(B) FHA Connection
(1) Definition
FHA Connection (FHAC) is an online system for Mortgagees to access and communicate to HUD origination, servicing, and mortgagee approval and recertification information.
(2) Standard
The Mortgagee may submit claims via FHAC for conveyances, Loss Mitigation Home Retention Option incentives, CWCOT, and PFS claims.
The Mortgagee may not use FHAC for filing Single Family Loan Sale (SFLS) claims, Property located on Indian Land claims, Hawaiian Home Lands claims, and supplemental claims.
The Mortgagee must enter and submit claims individually; the submitted claims will be batched and loaded nightly into the HUD Claims system for processing the next business day.
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IV. CLAIMS AND DISPOSITION A. Title II Claims
1. Claim Submission Process
(3) FHA Connection Technical Guidance
The Mortgagee may find information on using FHAC in HUD’s FHA Connection Guide.
(4) Transmission Confirmation
The Mortgagee must include a copy of the Single Family Insurance System
(SFIS) Claims Input Result screen in the Claim File. This screen appears when the claim has been successfully transmitted and will show the claim detail and receipt date.
(5) Error Correction
The Mortgagee must review its claim status via FHAC to determine whether a claim has been suspended and in need of correction or documentation. The Mortgagee must take necessary corrective action, including correction or submission of documentation, within 60 Days of the suspension to avoid deletion of its claim submission.
(6) Mortgagee Contact Information
The Mortgagee must include a staff member contact name and phone number in all claims submitted via FHAC. Alternatively, the Mortgagee may enter the name of a department or functional area that can be contacted regarding FHAC submissions.
(C) FHA Catalyst: Claims Module
(1) Definition
FHA Catalyst is an online system for Mortgagees to electronically submit claims.
(2) Standard
HUD provides notice of claim types that Mortgagees may file through FHA Catalyst. The Mortgagee may submit conveyance claims (including DIL), SFLS claims, CWCOT claims, PFS claims, Loss Mitigation Home Retention claims, supplemental claims, Insured Mortgages on Indian Land claims, and Hawaiian Home Lands Mortgages claims, which include information found on form HUD- 27011 and any relevant supporting documentation, via FHA Catalyst: Claims Module.
(3) FHA Catalyst Technical Guidance
The Mortgagee may find information on using FHA Catalyst in HUD’s guide for the FHA Catalyst: Claims Module.
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IV. CLAIMS AND DISPOSITION A. Title II Claims
1. Claim Submission Process
(4) Application Advice and Error Correction
The Mortgagee may check the status of its claim submission entered in FHA Catalyst: Claims Module through FHAC to determine if it has been denied or requires corrective action.