source:
  type: guide
  id: hud-4000-1-iv-r-denial-of-insurance-claims
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — r. Denial
    of Insurance Claims (05/09/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part IV — r. Denial
    of Insurance Claims (05/09/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iv-r-denial-of-insurance-claims-full
  canonical_id: hud-4000-1-iv-r-denial-of-insurance-claims-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part IV — r. Denial of
    Insurance Claims (05/09/2022)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — r. Denial
      of Insurance Claims (05/09/2022)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'r. Denial of Insurance Claims (05/09/2022) Effective for loan
      applications dated on or after June 1, 2009, when FHA endorses a Loan for insurance,
      the Loan is covered under the Lender’s Contract of Insurance. The insurance
      coverage for the Loan is incontestable from the date of issuance of the certificate
      of insurance except for fraud or misrepresentation on the part of the claimant
      in the origination. Regardless of the loan application date, FHA may deny a
      claim in whole or in part, or within two years after paying a claim, and recover
      the claim payment based upon a violation of FHA’s requirements for claim submission.
      If the Note representing the Borrower’s obligation that is assigned to FHA is
      invalid or unenforceable, or if the Lender making the claim does not follow
      the FHA claim requirements under the insurance contract, FHA may deny payment
      of the claim. IV. CLAIMS AND DISPOSITION C. Title I Claims 2. Title I Claims
      for Manufactured Homes Handbook 4000.1 1683 Last Revised: 11/26/2025 i. Debt
      Not Valid or Enforceable If the enforceability of the lien can be challenged,
      the Lender can obtain a Judgment against the Borrower and assign the Judgment
      to HUD. A lien may be challenged by improper wording of or method of mailing
      a legal notice, or other events that can challenge the validity of the deficiency
      debt. Acquiring a Judgment will prove the debt is valid. ii. Missing or Incomplete
      Claim File Documentation The claim package must include all applicable documents
      listed on form HUD-637. If claim documentation is missing or incomplete, the
      FOC may request the documents from the Lender. iii. Claim Filing Past the Deadline
      If a claim is filed after the claim filing deadline, the Lender must request
      a waiver to document that the late filing was unavoidable. Note that a servicing
      error by the Lender is not considered a valid basis for a waiver. iv. Unresolved
      Borrower Complaint A Borrower complaint that casts doubt on the enforceability
      of the loan Note must be resolved prior to filing a claim. The Lender may resubmit
      the claim with additional documentation regarding the resolution of the complaint
      or if the Lender obtains a Judgment against the Borrower. Obtaining a Judgment
      against the Borrower will prove the debt is valid and enforceable. v. Note and/or
      Assignment Not an Original The Lender may file a Missing Document Statement
      if it cannot locate the original Note and/or Assignment of Note. vi. Error on
      the Appraisal Obtained in Connection with the Repossession of the Manufactured
      Home The Lender must address and resolve appraisal errors directly with the
      Appraiser. A claim may still be paid if errors are not resolved; however, HUD
      will adjust the claim payment amount. Errors on the appraisal include, but are
      not limited to, a property description (including model) that does not match
      the invoice/sales contract, math error in value calculation, and/or a value
      of model options was incorrectly used or omitted. IV. CLAIMS AND DISPOSITION
      C. Title I Claims 2. Title I Claims for Manufactured Homes Handbook 4000.1 1684
      Last Revised: 11/26/2025 vii. Missing or Incorrect Information on Form HUD-637,
      Title I Claim for Loss The FOC will notify the Lender if a revised form HUD-637
      is required due to missing or incorrect information. The revised form must be
      signed by an authorized official of the Lender prior to its resubmission to
      HUD. viii. Missing or Incomplete Receipts for Repossession and Resale Expenses
      HUD will adjust/lower claim amounts if a receipt used to substantiate a claimed
      amount is missing or unclear, unless the Lender can locate the receipt or clarify
      any information in question.'
  judgment: false
