source:
  type: guide
  id: hud-4000-1-iv-c-claim-type-05-supplemental-claims-remittances
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — c. Claim
    Type 05 - Supplemental Claims/Remittances (03/01/2023)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part IV — c. Claim
    Type 05 - Supplemental Claims/Remittances (03/01/2023).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iv-c-claim-type-05-supplemental-claims-remittances-full
  canonical_id: hud-4000-1-iv-c-claim-type-05-supplemental-claims-remittances-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part IV — c. Claim Type
    05 - Supplemental Claims/Remittances (03/01/2023)
  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 — c. Claim
      Type 05 - Supplemental Claims/Remittances (03/01/2023)
    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: 'c. Claim Type 05 - Supplemental Claims/Remittances (03/01/2023)
      The Mortgagee may submit a supplemental claim under Claim Type 05. i. Definition
      A Supplemental Claim is a claim readjusting the initial claim payment due to
      delayed disbursements or claim calculation or payment errors. ii. Standard The
      Mortgagee may submit one supplemental claim within six months of final settlement
      for conveyance claims or full settlement for all other claim types in the following
      circumstances: • when a vendor delays submitting an invoice to the Mortgagee
      for an allowable expense; • for amounts paid after the date the original claim
      was filed if the obligations were incurred before the deed or assignment to
      HUD was filed for record or was paid on HUD’s written instruction; • requests
      for reconsideration of disallowed costs; or • additional attorney fees not paid
      on the original claim. The Mortgagee may submit subsequent supplemental claims
      in the following circumstances: • overpayments due to HUD; • hazard insurance
      refund adjustments; • deficiency Judgments; • additional unpaid principal balance,
      with debenture interest, not paid on the original claim; or IV. CLAIMS AND DISPOSITION
      A. Title II Claims 2. Claim Types Handbook 4000.1 1604 Last Revised: 11/26/2025
      • where the Mortgagee has received approval from the Single Family Claims Branch
      to file a subsequent supplemental. The Mortgagee may not submit supplemental
      claims prior to receipt of the original Part B payment except when Part A was
      overpaid. iii. Overpayments and Funds Due HUD (A) Definition An Overpayment
      is HUD’s payment of a claim in an inaccurate amount that results in money owed
      by the Mortgagee to HUD. (B) Claim Involves Overpayment If the claim involves
      an overpayment, the Mortgagee must: • remit amounts due; and • retain in the
      Claim File a supplemental claim Part A explaining how the overpayment occurred
      in the “Mortgagee’s comments” section. (C) Claim Involves a Computation of Interest
      If the amount overpaid or received involved a computation of interest, the Mortgagee
      must: • remit amounts due to HUD, including in the reimbursement: o interest
      calculated by the Mortgagee and included in Part B; and o interest calculated
      by HUD for the period from the date of claim to the date of payment; and • retain
      in the Claim File a supplemental claim Part A explaining how the overpayment
      occurred in the “Mortgagee’s comments” section. (D) Remittance of Amounts Due
      The Mortgagee must remit amounts due via pay.gov using the Claim Remittance
      functions in FHAC. iv. Hazard Insurance Refund Adjustment (A) Standard The Mortgagee
      may submit a supplemental claim for a hazard insurance refund adjustment when
      it has met all of the following conditions: • hazard insurance costs were included
      in the initial submission of form HUD- 27011, Part B; and • the Mortgagee has
      documented in its Claim File its efforts in diligently following up with the
      hazard insurance carrier to confirm any necessary adjustment. IV. CLAIMS AND
      DISPOSITION A. Title II Claims 2. Claim Types Handbook 4000.1 1605 Last Revised:
      11/26/2025 Refer to Time Frame for Submission of Hazard Insurance Refund Adjustment
      for guidance regarding the period during which such a supplemental claim may
      be submitted. (B) Claim Form Preparation When completing and submitting the
      supplemental claim, the Mortgagee must: • include a copy of the carrier’s notification
      with its submission; and • clearly indicate in the “Mortgagee’s comments” section
      that the supplemental claim is being filed to recover an adjustment to the hazard
      insurance premium refund. v. Deficiency Judgments The Mortgagee may submit one
      supplemental claim for the additional costs related to the pursuit of the deficiency
      Judgment when all such known costs were included in the initial submission of
      Part B of form HUD-27011, or, to the extent possible, are claimed within six
      months from the date of final settlement of the initial Part B. vi. Attorney
      Fees The Mortgagee may submit a supplemental claim for attorney fees if it believes
      that it is entitled to an amount more than was actually reimbursed in the initial
      claim payment. The supplemental claim must include: • a supplemental claim form
      HUD-27011, with an explanation of the need for the increased fee in “Mortgagee’s
      comments;” • a copy of all Parts submitted in the original claim filing; • a
      copy of the final Advice of Payment letter; and • copies of the attorney chronology
      and any documentation necessary to support the additional claimed amount. The
      Mortgagee must retain in the Claim File adequate documentation supporting all
      attorney fees. Should HUD determine in a post-claim review that the claim for
      attorney fees is greater than allowed amounts or is unsupported by documentation,
      HUD will bill the Mortgagee for overpayment as: • an amount statistically calculated
      for all claims within the review period; or • the actual amount of the overpayment,
      if the review was not based on a statistical sample. vii. Claims for Additional
      Funds The Mortgagee may submit one supplemental claim for additional funds within
      six months of the date of final settlement for conveyance claims or full settlement
      for all other claim types. IV. CLAIMS AND DISPOSITION A. Title II Claims 2.
      Claim Types Handbook 4000.1 1606 Last Revised: 11/26/2025 (A) Supplemental Claims
      for Correction of Dates in Part A When the claim for additional funds is based
      on a corrected date on the Part A claim, the Mortgagee must include: • the form
      HUD-27011 reflecting the corrected date(s); • the reason for the supplemental
      claim in the “Mortgagee’s comments” section; • the certification on the accuracy
      and validity of all other dates in the “Mortgagee’s comments” section; and •
      all supporting documentation. (1) Certification When the claim for additional
      funds is based on a corrected date on the Part A claim, the Mortgagee must provide
      with this supplemental claim a certification as to the accuracy and validity
      of all other dates on the Part A claim which affect time requirements and the
      payment of interest on the claim. This certification must include: • a statement
      that all such dates have been rechecked against the claim filing instructions
      in this Handbook 4000.1; and • a statement describing the document referenced
      by the Mortgagee for each of these dates. (2) Required Supporting Documentation
      The Mortgagee must provide the following supporting documentation for corrected
      claims: • Item 8, “Due date last complete installment paid”: Include Mortgage
      Payment history record. • Item 9, “Date of possession and acquisition of marketable
      title”: Include legal documentation such as sheriff’s deed, redemption documentation,
      receipt of sale funds, recorded DIL, proof of eviction date, inspection report,
      and a chronology of events from the date in Item 11 to the date in Item 9. •
      Item 10, “Date deed or assignment filed for record or date of closing or appraisal”:
      Include recorded deed or assignment, transmittal letter to recording authority,
      or Closing Disclosure or similar legal document. • Item 11, “Date foreclosure
      proceedings (a) Instituted or (b) Date of deed in lieu”: Include documentation
      of first legal action taken to institute foreclosure, such as the recorded complaint,
      or publication of notice of sale, or the recorded DIL. • Item 17, “Unpaid loan
      balance as of date in block 8”: Include copies of the mortgage Note, Loan Modification
      (if applicable), and payment history record. • Item 19, “Expiration date of
      extension to foreclose/assign”: Include the printout from Extensions and Variances
      Automated Requests System (EVARS) of HUD’s approval (form HUD-50012, Mortgagee’s
      Request IV. CLAIMS AND DISPOSITION A. Title II Claims 2. Claim Types Handbook
      4000.1 1607 Last Revised: 11/26/2025 for Extensions of Time) of the extension
      and/or supporting documentation for all automatic extensions. • Item 20, “Date
      of notice/extension to convey”: Include the printout of the MCM’s approval (form
      HUD-50012) from P260 or support for the SFLS Claim Identification Date. • Item
      21, “Date of release of bankruptcy, if applicable”: Include a copy of the bankruptcy
      initiation document and release notice, release of stay, or discharge notice.
      • Item 31, “Mortgagee reported curtailment date”: Include form HUD- 27011 Part
      D filed with the original claim submission, with applicable documentation to
      support curtailment correction. • “Disbursements for Protection and Preservation”:
      Include the form HUD- 27011 Part C filed with the original claim submission,
      with supporting documentation for all P&P expenses. • Disbursements (taxes,
      HIP, possessory action costs), foreclosure costs, attorney fees, bankruptcy
      costs, all other disbursements: Include documentation showing payment made,
      including paid receipts or invoices and supporting documentation. If cost incurred
      after the date the deed or assignment was filed for recording, include a printout
      of the MCM’s approval from P260 to pay costs. • Taxes paid after date of deed
      to HUD: If taxes were paid after the date the deed or assignment was filed for
      recording, include a printout of the MCM’s approval for payment before filing
      a supplemental claim. (B) Claims for Additional Funds When Subject to Administrative
      Offsets Not Permitted The Mortgagee must not claim additional funds when HUD
      is offsetting amounts. (C) Claims for Funds Related to Partial Claims Not Permitted
      If the Mortgagee claimed less than the actual Partial Claim note amount, the
      Mortgagee must absorb the cost of the miscalculation and must not: • claim the
      additional funds from HUD; or • add the deficient note amount to the Borrower’s
      mortgage balance. HUD will not accept corrected Partial Claims. viii. Submission
      of Supplemental Claim Form Parts to HUD The Mortgagee must submit supplemental
      claims in accordance with HUD guidance pertaining to Claim Type 05 submissions.
      Mortgagees must submit supplemental claims electronically through the FHA Catalyst
      Claims Module, (A) or (B). IV. CLAIMS AND DISPOSITION A. Title II Claims 2.
      Claim Types Handbook 4000.1 1608 Last Revised: 11/26/2025 (A) FHA Catalyst:
      Claims Module The Mortgagee must upload to the Claims Module: • copies of the
      original Parts A and B of the supplemental claim; • copies of Parts C, D, and
      E of the supplemental claim, if applicable; • supporting documents; and • copies
      of all Parts of the original claim. (B) Time Frame for Submission of Supplemental
      Claims For supplemental claims involving overpayments identified by the Mortgagee,
      including its own QC reviews, the Mortgagee may submit a remittance of overpayments
      and funds received by the Mortgagee at any time. For supplemental claims involving
      recouping additional unpaid principal balance not reimbursed on the original
      Part A claim, the Mortgagee may submit a claim at any time. For all other supplemental
      claims, the Mortgagee must submit supplemental claims no later than six months
      after the date of final payment, except where noted below. (1) Time Frame for
      Submission of Hazard Insurance Refund Adjustment The Mortgagee may submit a
      supplemental claim for a hazard insurance refund adjustment under any of the
      following conditions: • within six months from the date of final settlement
      of the original Part B claim; or • if the Mortgagee received the insurance carrier’s
      notification more than six months from the date of final payment, the Mortgagee
      must submit the supplemental claim within 24 Days from the date of the insurance
      carrier’s notification and must document in its Claim File its efforts in diligently
      following up with the hazard insurance carrier to confirm any necessary adjustment.
      HUD will not accept the supplemental claim for a hazard insurance refund adjustment
      more than one year from the date of final settlement. (2) Time Frame for Submission
      of Deficiency Judgments Costs When HUD has required the Mortgagee to pursue
      a deficiency Judgment, the Mortgagee must submit one supplemental claim for
      the additional costs related to the deficiency Judgment within the latter of:
      • one year from the date of final settlement of the initial Part B; or • three
      months after the deficiency Judgment. IV. CLAIMS AND DISPOSITION A. Title II
      Claims 2. Claim Types Handbook 4000.1 1609 Last Revised: 11/26/2025 (3) Extension
      to Time Frame for Submission If more than one year is needed to request reimbursement
      for related Housing Insurance Premium (HIP) adjustments or deficiency Judgments,
      the Mortgagee must request an extension from the MCM. When using an extension
      based on deficiency Judgments or HIP adjustments, the Mortgagee may not include
      in its supplemental claim other types of costs they may have failed to include
      in the earlier claim. The Mortgagee must include with its supplemental claim
      an electronic copy of the MCM’s approval (form HUD-50012). (4) HUD Requests
      for Additional Information Supplemental claims previously submitted and returned
      to the Mortgagee for further information must be received by HUD as soon as
      possible but no later than 45 Days from the date of HUD’s letter and/or request.
      ix. Variance Requests for Additional Supplemental Claim Submissions The Mortgagee
      generally may only submit one supplemental claim. When circumstances outside
      of the Mortgagee’s control require the submission of additional supplemental
      claims, the Mortgagee must submit a request to the Single Family Claims Branch
      before filing a supplemental claim. x. Appeals of Supplemental Claim Disposition
      The Mortgagee may submit an appeal of a denied supplemental claim within 60
      Days from the date the supplemental claim was denied through the FHA Catalyst
      System or via an encrypted email to FHASupplementalClaims@hud.gov with the subject:
      Supplemental Claim Appeal XXX-XXXXXX. d. Claim Type 06 - Claims Without Conveyance
      of Title (04/28/2025) [Updates in this section must be implemented for Post-Foreclosure
      Sales scheduled to occur on or after August 3, 2022] i. Computation of Interest
      (A) Debenture Interest Provided that the Mortgagee has met all time requirements,
      HUD will pay debenture interest on the unpaid principal balance from the date
      of Default to either: • the date the Mortgagee or third-party bidder obtains
      title; or • the date the Borrower redeems the Property. IV. CLAIMS AND DISPOSITION
      A. Title II Claims 2. Claim Types Handbook 4000.1 1610 Last Revised: 11/26/2025
      HUD will then pay debenture interest on the difference between the unpaid principal
      balance and the greater of either the CAFMV, redemption amount, or the third-party
      bid, to the date of final payment of the claim. (B) Calculating Interest for
      an Expenditure Using Daily Interest Rate Factors HUD will pay debenture interest
      on expenses from the date of expenditure to the date of final payment of the
      claim, as calculated using the method in Calculating Interest for an Expenditure
      using Daily Interest Rate Factors. (C) Calculating Interest for Default after
      Special Forbearance-Unemployment or Special Forbearance When the Mortgagee files
      a claim for insurance benefits after a Default under an SFB-Unemployment Agreement
      or SFB, HUD will pay mortgage note interest as calculated under the procedures
      in Calculating Interest for Default after Special Forbearance-Unemployment or
      Special Forbearance. (D) Curtailment of Interest The Mortgagee must self-curtail
      interest on Single Family claims for the following failures to meet HUD requirements
      as of the date on which the required action should have been taken: • failure
      to timely initiate foreclosure; • failure to give HUD notice of foreclosure;
      • failure to meet Reasonable Diligence Time Frames; and • failure to file the
      claim within 30 Days of: o the date the Mortgagee acquired good marketable title;
      o the date a third party acquired good marketable title; o the date the Borrower
      or other party redeemed the Property; o the date the redemption period expires;
      or o such other date as required by the FHA Commissioner. If more than one time
      requirement is missed and there are no applicable extensions, the Mortgagee
      must calculate the interest for the claim payment to the earliest missed time
      requirement. ii. Computation of Claim Amount (A) Standard The Mortgagee may
      claim 100 percent of the unpaid principal balance, plus allowable costs and
      debenture interest. HUD will deduct from the claim amount the sale bid or redemption
      price. IV. CLAIMS AND DISPOSITION A. Title II Claims 2. Claim Types Handbook
      4000.1 1611 Last Revised: 11/26/2025 (B) Eviction and P&P Costs When Property
      Is Sold to a Third Party When filing a CWCOT claim where a third party is the
      successful bidder at the foreclosure sale, the Mortgagee may not claim eviction
      costs as part of the CWCOT claim. Mortgagees may only be reimbursed for Cash
      for Keys on CWCOT claims resulting from post-foreclosure sales efforts. When
      a third party is the successful bidder at the foreclosure sale or the Mortgagee
      elects to retain the Property and file a CWCOT claim, the Mortgagee may claim
      reimbursement for Property P&P costs incurred before the foreclosure sale. If
      the Property is sold as part of a post-foreclosure sales effort, the Mortgagee
      may claim reimbursement for Property P&P costs incurred before the Closing Date.
      (C) Hazard Insurance Premiums HUD will not reimburse the Mortgagee for any hazard
      insurance premiums allocated to the period after acquisition of title by the
      Mortgagee or a third party. (D) Deficiency Judgments When HUD requests that
      the Mortgagee pursue a deficiency Judgment pursuant to 24 CFR § 203.369, the
      Mortgagee may request full reimbursement of certain fees. (E) Third-Party Auction
      Service Fees For successful third-party sales only, HUD will reimburse Mortgagees
      for independent third-party auction service fees they incur for an amount that
      does not exceed 5 percent of a Property’s sales price. iii. Submission of Claim
      Form Parts to HUD for CWCOT The Mortgagee must submit Parts A and B simultaneously
      no later than 30 Days after: • the date the Mortgagee acquired good marketable
      title; • the date a third party acquired good marketable title; • the date the
      Borrower or other party redeemed the Property; • the date the redemption period
      expires; or • such other date as required by the FHA Commissioner. When filing
      via EDI, FHA Catalyst, or FHAC, the Mortgagee must submit Parts A and B no later
      than two Days after the date the form was prepared. When submitting via FHA
      Catalyst, the Mortgagee must also submit Parts C, D, and E. In all cases, the
      Mortgagee must also upload into P260: • all Parts of form HUD-27011; • the Closing
      Disclosure or similar legal document for post-foreclosure sales; • the appraisal;
      • appraisal invoices; IV. CLAIMS AND DISPOSITION A. Title II Claims 2. Claim
      Types Handbook 4000.1 1612 Last Revised: 11/26/2025 • a worksheet reflecting
      the Mortgagee’s application of the CAFMV. The worksheet must include the CAFMV
      adjustment percentage provided in the instructions on FHAC, and where applicable,
      the state-mandated foreclosure price; and • a third-party service fee invoice
      for auction services, if applicable.'
  judgment: false
