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k. Appeals (05/09/2022)
The Lender may appeal a denial of insurance benefits. The appeal must be sent to the FOC for processing with the claim package. Should the FOC uphold the denial, the FOC will forward the appeal to the Office of Single Family Program Development, Home Mortgage Insurance Division for review. The Home Mortgage Insurance Division will communicate the final decision to the FOC, who will respond to the Lender. An appeal request must include the following:
• the regulation in dispute;
• the Lender’s interpretation of the regulation;
• why HUD’s current interpretation is incorrect;
• any other documentation supporting the Lender’s interpretation of the regulation;
• actions the Lender took to meet the Lender’s interpretation of the regulations; and
• evidence in the claim binder demonstrating these actions.