source:
  type: regulation
  id: hud-4000-1-iv-a-3
  authority: HUD Handbook 4000.1 IV.A.3 — Payment of Claims
  description: 'HUD Single-Family Housing Policy Handbook 4000.1, Section IV.A.3.

    See obligation entries for operative requirements and verbatim

    primary-source citations.

    '
obligations:
- id: hud-4000-1-iv-a-3-full
  canonical_id: hud-4000-1-iv-a-3-full
  section: HUD Handbook 4000.1 IV.A.3
  description: "Processing of Claim Forms: a. Processing of Claim Forms (01/02/2020) \nHUD will generate\
    \ payment to the Mortgagee if: \n• the Mortgagee’s submission of Parts A and B pass all system edits\
    \ and control \nchecks; and \n• the Mortgagee provides all required documentation or makes all necessary\
    \ updates to \nthe suspended claim. \nHUD ma…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - hud
  - 4000-1
  - curated
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 IV.A.3.a — Processing of Claim Forms
    source_class: hud-handbook-4000-1
    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) \nHUD will generate payment to the Mortgagee\
      \ if: \n• the Mortgagee’s submission of Parts A and B pass all system edits and control \nchecks;\
      \ and \n• the Mortgagee provides all required documentation or makes all necessary updates to \n\
      the suspended claim. \nHUD may reduce the claim payment if the claim lists unusually high disbursements\
      \ that are \nnot supported by documentation. HUD may require reimbursement of any amounts that are\
      \ \nfound to be excessive or not supported by appropriate documentation. \nWhen a Mortgagee files\
      \ a claim, other than a supplemental claim or Loss Mitigation \nIncentive claim, after the expiration\
      \ of a designated time period, HUD will accept these \nclaims, which will be subject to interest\
      \ curtailment. \ni. Initial Payment \nThe Initial Claim Payment, which is referred to as the Partial\
      \ Payment on the Advice \nof Payment, is the disbursement to the Mortgagee of funds relating to\
      \ Part A of form \nHUD-27011. \nHUD will pay the unpaid principal balance plus debenture interest\
      \ upon receipt and \nprocessing of Part A and required attachments. \n\n \n \nBefore debenture interest\
      \ is calculated, HUD will reduce the unpaid principal balance \nby the greater of any damage or\
      \ insurance recovery reported in Item 27. HUD’s \nClaims system will determine the amount of debenture\
      \ interest. \nii. Final and Full Payments \nThe Final Claim Payment is the disbursement to the Mortgagee\
      \ of funds relating to \nPart B of form HUD-27011 for conveyance claims. \nThe Full Claim Payment\
      \ is the disbursement to the Mortgagee of funds relating to \nPart A and Part B of form HUD-27011\
      \ for claims other than conveyance claims. \nAs Final Claim Payment for conveyance claims, HUD will\
      \ pay the Mortgagee’s \nexpenses, allowances, and debenture interest upon receipt and processing\
      \ of Part B \nand required attachments. \nAs Full Claim Payment for claims other than conveyance\
      \ claims, HUD will pay \nunpaid principal balance, the Mortgagee’s expenses, allowances, and debenture\
      \ \ninterest upon receipt and processing of Part A and Part B claims and required \nattachments.\
      \ \nb. Method of Payment (09/30/2016) \nHUD makes all claim disbursements through the U.S. Treasury\
      \ Electronic Funds Transfer \n(EFT) wire transfer application. \nc. Disbursement of Claim (09/30/2016)\
      \ \nFor Claim Type 31 only, HUD will disburse the incentive payment to the Servicer. For all \n\
      other Claim Types, HUD will not honor requests for claim payments to be disbursed to any \nentity\
      \ other than the holder of the Mortgage."
    drafter_attestation: Verbatim section from snapshot 8c03836f77f317e1; boundary human-curated + substring-verified
      (2026-07-23).
  judgment: false
