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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;
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IV. CLAIMS AND DISPOSITION A. Title II Claims
1. Claim Submission Process
• 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
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IV. CLAIMS AND DISPOSITION A. Title II Claims
2. Claim Types
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.