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i. Claim Type 32 – Disaster Loan Modification (10/01/2025)
The Mortgagee may file a claim for a Disaster Loan Modification incentive, including up to $250 in title-related expenses, under Claim Type 32. HUD will pay the Mortgagee a financial incentive for the use of a Disaster Loan Modification in compliance with all regulatory requirements and procedures relating to the submission of incentive claims.
The Mortgagee may only file for an incentive fee when the Loss Mitigation Option is used to cure the Default. When the Disaster Partial Claim and Disaster Loan Modification are used together, the Mortgagee must submit two separate claims.
HUD must receive a correct and complete claim submission of Parts A and B via FHAC or FHA Catalyst within 60 Days of the execution date of the Loan Modification or the incentive claim will not be processed.