source:
  type: guide
  id: hud-4000-1-iv-e-method-and-notification-of-payment
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — e. Method
    and Notification of Payment (05/09/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part IV — e. Method
    and Notification of Payment (05/09/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iv-e-method-and-notification-of-payment-full
  canonical_id: hud-4000-1-iv-e-method-and-notification-of-payment-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part IV — e. Method and
    Notification of Payment (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 — e. Method
      and Notification of Payment (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: e. Method and Notification of Payment (05/09/2022) The Debt Collection
      Improvement Act of 1996 directs federal agencies to disburse funds via Electronic
      Funds Transfer (EFT). i. Electronic Funds Transfer In order to receive claim
      payments, the Lender must have completed the SF 3881 form, ACH Vendor/Miscellaneous
      Payment Enrollment. To wire payments to a Lender’s bank account, HUD must receive
      a completed SF 3881 form. Processing this form takes several weeks as does testing
      through the Federal Reserve System. It is advisable for a Lender to have the
      form on file with HUD before filing a claim. The form can be obtained from the
      FOC. After completing the SF 3881 form, Lenders must mail it to the address
      on the form. ii. Notification and Identification of Claim Payment Upon claim
      payment, a record will be attached to each EFT payment that includes the FHA
      case number and the Lender’s loan number reported to HUD when the Loan was first
      reported for insurance. Details of the claim status and claim payment of a Loan
      can be found online using FHAC. iii. Lender Responsibilities after Insurance
      Claim Payment The Lender must not attempt to collect money from the Borrower,
      including the coinsurance loss, after a claim is paid. Since the loan Note is
      assigned to the United States, the Lender has no basis from which to make demand
      upon a Borrower. After claim payment, the Lender must refer any legal notices,
      inquiries, correspondence, or payment to HUD’s FOC.
  judgment: false
