source:
  type: guide
  id: hud-4000-1-iv-a-processing-of-claim-forms
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — a. Processing
    of Claim Forms (01/02/2020)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part IV — a. Processing
    of Claim Forms (01/02/2020).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iv-a-processing-of-claim-forms-full
  canonical_id: hud-4000-1-iv-a-processing-of-claim-forms-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part IV — a. Processing
    of Claim Forms (01/02/2020)
  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 — a. Processing
      of Claim Forms (01/02/2020)
    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: 'a. Processing of Claim Forms (01/02/2020) HUD will generate
      payment to the Mortgagee if: • the Mortgagee’s submission of Parts A and B pass
      all system edits and control checks; and • the Mortgagee provides all required
      documentation or makes all necessary updates to the suspended claim. HUD may
      reduce the claim payment if the claim lists unusually high disbursements that
      are not supported by documentation. HUD may require reimbursement of any amounts
      that are found to be excessive or not supported by appropriate documentation.
      When a Mortgagee files a claim, other than a supplemental claim or Loss Mitigation
      Incentive claim, after the expiration of a designated time period, HUD will
      accept these claims, which will be subject to interest curtailment. i. Initial
      Payment (A) Definition The Initial Claim Payment, which is referred to as the
      Partial Payment on the Advice of Payment, is the disbursement to the Mortgagee
      of funds relating to Part A of form HUD-27011. (B) Standard HUD will pay the
      unpaid principal balance plus debenture interest upon receipt and processing
      of Part A and required attachments. IV. CLAIMS AND DISPOSITION A. Title II Claims
      3. Payment of Claims Handbook 4000.1 1620 Last Revised: 11/26/2025 Before debenture
      interest is calculated, HUD will reduce the unpaid principal balance by the
      greater of any damage or insurance recovery reported in Item 27. HUD’s Claims
      system will determine the amount of debenture interest. ii. Final and Full Payments
      (A) Definition The Final Claim Payment is the disbursement to the Mortgagee
      of funds relating to Part B of form HUD-27011 for conveyance claims. The Full
      Claim Payment is the disbursement to the Mortgagee of funds relating to Part
      A and Part B of form HUD-27011 for claims other than conveyance claims. (B)
      Standard As Final Claim Payment for conveyance claims, HUD will pay the Mortgagee’s
      expenses, allowances, and debenture interest upon receipt and processing of
      Part B and required attachments. As Full Claim Payment for claims other than
      conveyance claims, HUD will pay unpaid principal balance, the Mortgagee’s expenses,
      allowances, and debenture interest upon receipt and processing of Part A and
      Part B claims and required attachments.'
  judgment: false
