source:
  type: guide
  id: hud-4000-1-iv-n-method-and-notification-of-payment
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — n. Method
    and Notification of Payment (05/09/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part IV — n. Method
    and Notification of Payment (05/09/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iv-n-method-and-notification-of-payment-full
  canonical_id: hud-4000-1-iv-n-method-and-notification-of-payment-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part IV — n. 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 — n. 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: 'n. 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. Lenders must mail the completed SF 3881 form to
      the address on the form. ii. Notification and Identification of 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. The Lender must promptly refer any inquiries or
      communications from the Borrower or others regarding the Loan to HUD’s FOC.
      Lenders must also submit all legal notices, correspondence, or payment to HUD’s
      FOC. IV. CLAIMS AND DISPOSITION C. Title I Claims 2. Title I Claims for Manufactured
      Homes Handbook 4000.1 1681 Last Revised: 11/26/2025'
  judgment: false
