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o. Claim Type 32 – COVID-19 Recovery Modification or COVID-19 Advance Loan
Modification (01/30/2023)
The Mortgagee may file a claim for a COVID-19 Recovery Modification incentive or a COVID-19 Advance Loan Modification (COVID-19 ALM) 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 COVID-19 Recovery Modification or a COVID-19 ALM in compliance with all regulatory requirements and procedures relating to the submission of incentive claims.
The Mortgagee may only file for an incentive fee for the Loss Mitigation Option used to cure the Default. When the COVID-19 Recovery Partial Claim and COVID-19 Recovery Modification are used together, the Mortgagee must submit two separate claims for the incentives for these two options.
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 COVID-19 Recovery Modification or the COVID-19 ALM or the incentive claim will not be processed.