source:
  type: guide
  id: hud-4000-1-iv-u-rescinding-or-repurchasing-a-claim
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — u. Rescinding
    or Repurchasing a Claim (05/09/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part IV — u. Rescinding
    or Repurchasing a Claim (05/09/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iv-u-rescinding-or-repurchasing-a-claim-full
  canonical_id: hud-4000-1-iv-u-rescinding-or-repurchasing-a-claim-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part IV — u. 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 — u. 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: 'u. Rescinding or Repurchasing a Claim (05/09/2022) i. Voluntary
      Recall of a Claim (A) Rescinding a Claim (Pre-claim Payment) 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 (Post-claim Payment) The 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 claim amount of the claim to the lockbox address for Title I payments.
      ii. Involuntary Repurchase (HUD’s Demand for Repurchase of a Claim) FHA may
      demand that the Lender repurchase a Loan when the Note is invalid or unenforceable,
      or for violating FHA’s claim submission requirements. FHA’s demand for repurchase
      may occur up to two years after the date that the claim is paid. 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. Consistent with existing
      practice, 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. IV. CLAIMS AND DISPOSITION D. Title
      I Disposition 1. Property Disposition for Property Improvement Loans Handbook
      4000.1 1686 Last Revised: 11/26/2025 D. TITLE I DISPOSITION 1. Property Disposition
      for Property Improvement Loans'
  judgment: false
