8-6: ASSIGNMENT CLAIMS (11/18/1994)

Owned by Kacey Olson
Nov 25, 2018
2 min read

© HUD Single Family Housing Policy Handbook 4235.1

Refer to HUD instructions for filing claims for insurance benefits for HECMs, which can be obtained from the local HUD Office when obtaining copies of the Form HUD-27011.


A. Lenders that have chosen the assignment insurance option may file a claim for insurance benefits after the mortgage has been voluntarily assigned to HUD.
1) The claim must be filed no later than 15 days after the recording of the assignment.
2) The claim will equal the entire outstanding balance, less adjustments permitted by the regulations, up to the maximum claim amount.
3) The lender must also complete and submit with the claim a certification that states that the title package has been sent to the local HUD Office.
B. If the mortgage has been assigned to HUD by demand, the lender is not entitled to file a claim for the entire outstanding balance on the mortgage.
1) The claim amount will only reimburse the lender for payments made to or on behalf of the borrower, excluding accrued interest.
2) HUD will deduct an amount from the payment to the lender as reimbursement for administrative expenses incurred by assuming the lender's obligations, including late charges paid to the borrower due to the lender's failure to make payment, along with other adjustments permitted by the regulations.
C. The claim amount cannot exceed the maximum claim amount for the mortgage.
D. If the lender meets the time requirements for voluntarily assigning the mortgage and for filing a claim, the claim payment will include interest and might exceed the maximum claim amount. HUD will pay interest from the date the mortgage was assigned to the date when payment of the claim is made.