source:
  type: guide
  id: hud-4000-1-iv-l-rescinding-or-repurchasing-a-claim
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — l. Rescinding
    or Repurchasing a Claim (05/09/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part IV — l. Rescinding
    or Repurchasing a Claim (05/09/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iv-l-rescinding-or-repurchasing-a-claim-full
  canonical_id: hud-4000-1-iv-l-rescinding-or-repurchasing-a-claim-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part IV — l. Rescinding
    or Repurchasing a Claim (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 — l. Rescinding
      or Repurchasing a Claim (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: 'l. Rescinding or Repurchasing a Claim (05/09/2022) i. Voluntary
      Recall of a Claim (A) Rescinding a Claim The Lender may recall a claim at any
      point prior to claim payment. The rescission request must be sent in writing
      to the FOC and must clearly identify which claim is being recalled. The request
      must be in writing and signed by an authorized officer of the Lender. (B) Repurchasing
      a Claim A Lender may repurchase a claim for any reason if the claim payment
      amount is returned within 31 Days of the claim payment date. After 31 Days,
      HUD retains the right to determine whether it is in the best interest of HUD
      to return the claim. The repurchase request must be sent to the FOC and must
      clearly identify which claim is being recalled. The request must be in writing
      and signed by an authorized officer of the Lender. If repurchase is approved,
      the Lender must send a separate payment equal to the amount of the claim to
      the lockbox address for Title I payments. ii. Involuntary Repurchase FHA may
      demand that the Lender repurchase a Loan when the Note is invalid or unenforceable,
      or for violation of FHA’s regulations. FHA’s demand for repurchase may occur
      up to two years after the date that the claim is paid. IV. CLAIMS AND DISPOSITION
      C. Title I Claims 1. Title I Claims for Property Improvement Handbook 4000.1
      1673 Last Revised: 11/26/2025 FHA may demand repurchase at any time with no
      time limit upon finding fraud or misrepresentation on the part of the claimant
      in the Loan’s origination. When a Loan is repurchased, FHA will return the claim
      file to the Lender. Failure to return a claim payment after demand could result
      in interest, administrative costs and penalties being assessed against the Lender.
      Continued failure to pay may result in referral to HUD’s Mortgagee Review Board
      (MRB), the Department of the Treasury, or the Department of Justice (DOJ) for
      further action to enforce collection of the debt.'
  judgment: false
