Form HUD-2537 Mortgagee's Application for Partial Settlement

___________________________________________________________________________________________

Mortgagee's Application for
Partial Settlement
Multifamily Mortgage

U.S. Department of Housing
and Urban Development
Office of Housing
Federal Housing Commissioner

OMB Approval No. 2502- 0427
(exp. XX/XX/XX)

Public reporting burden for this collection of information is estimated to average 15 minutes per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency
may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number.
This information is collected to obtain required fiscal data for HUD to compute a partial settlement of insurance benefits prior to a complete examination
of the claim. HUD minimizes expenses incurred while paying insurance benefits and provides immediate financial relief to the claimant. Payment of
such benefits is cited in 12 USC 1713(g). The information requested does not lend itself to confidentiality.

Instructions: Prepare this form in four parts (original & 3 copies)
immediately upon receipt and submit three parts to the:
U.S. Department of Housing and Urban Development, Office of
Financial Services,
Attn: Multifamily Financial Operations Division, HWAR
Washington, D. C. 20410 - 8000.
On the date the assignment or deed is filed for record, a telefax
is to be sent to the
Chief, Multifamily Claims Branch, at (202) 619-8259,
advising the date that the assignment or deed was filed for record.
For assignments, the telefax must include the following
information:
"Assignment of mortgage for (name of Project),
Project No. __________ filed for record and endorsement of
hazard insurance policies accomplished on __________, 20__.
(1) Date of default (except for Section 221(g)(4) mortgages)
(2) Unpaid principal balance
(3) Monthly amount due for principal and interest, taxes, hazard
insurance, and reserve for replacement escrows (listed
separately)
(4) Date and amount of last taxes due
(5) Due date of next taxes payable
(6) Escrow balances for taxes, hazard insurance, reserves for
replacements, and mortgage insurance premiums
(7) Initial and final endorsement dates
(8) Date of commitment
(9) Your telefax number
(10) (Mortgagor name, address and tax identification number
(11) Mortgagor type of entity (individual, partnership, corporation,
etc.)
(12) Name and address of company managing the project
(13) Is the mortgage Bond Financed? ____Yes _____No
If yes, please state 'Bond Type.' __________________
If the mortgage is bond financed, please follow the
1. Project Number

instructions above and Mortgagee Letter 99-33.

(14) A certification that the mortgagee or servicer has completed
and submitted HUD Form 2537, Mortgagee's Application for
Partial Settlement, HUD Form 2747,Mortgagee's Application
for Insurance Benefits, and the Payment Information Form
and Debenture Lock Agreement, if any.
The following claims will be paid in cash unless the mortgagee
presents a written request for debentures: Sections 220, 221 and
233 endorsed on or after July 7, 1961; 235(j)(1) Section 241 loans
made in connection with any of the foregoing and endorsed on or
after July 15, 1978; 236 and all other multifamily mortgages endorsed under another section of Titles II or XI pursuant to Section
223(e). All other multifamily claims are settled by issuance of
debentures.
For multifamily mortgage assignments which are to be settled by
issuance of debentures, all escrow deposits, reserves for replacement funds, undisbursed mortgage proceeds, any undisbursed
balance under a letter of credit, and other monies held by the
mortgagee for the account of the mortgagor must be remitted to
HUD on the date the assignment is filed for record. The mortgagee
will retain net income from operation of the project and receipts
from any source after the date of default irrespective of whether
the claim is settled in debentures or cash. For multifamily property
conveyances, and for all cash settlements, all funds are to be
retained by the mortgagee, and the amount thereof will be
deducted from the settlement.
If the mortgage has been finally endorsed for insurance, partial
settlement of approximately 90% of the unpaid principal balance
will be made on cash settlements upon receipt of the above
telefax. If the project is not completed, the amount of the partial
settlement will depend upon the extent of completion. The final
settlement will be made after receipt of the fiscal data and the title
requirements, which are to be submitted within 45 days after the
assignment of the mortgage, or deed, was filed for record, or such
further time as may be granted in writing.

2. Name & Location of Project

3. Date of this Notice

4. Payment in Default (specify date, amount, & nature)

5. Aggregate Cash Escrows on Hand at this Date
(including Reserves for Replacement)

$

6. Unpaid Principal Balance

7. Undisbursed Mortgage Proceeds

$

$

Send the original and two copies to HUD at the above address.
Mortgagee/Servicer should retain 1 copy

Page 1 of 2
ref. Handbook 4110.2

form HUD-2537
(06/06/2007)

_____________________________________________________________________________________________
The undersigned hereby certifies and agrees that in the event HUD finds it necessary to reconvey the property or reassign the mortgage, the
mortgagee will promptly reimburse HUD in full for the amount of the settlement without prejudice to the mortgagee's right to file an
application for insurance benefits at a subsequent date. The undersigned further certifies that all the information stated herein, as well as any
information provided in the accompaniment herewith, is true and accurate.
9. Servicer's Name, Address & Zip Code

8. Mortgagee's Name, Address & Zip Code

8a. Employer Identification Number

10. Signature & Title of Mortgagee Official

11. Signature & Title of Servicer Official

X

X

Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802).
.

Send the original and two copies to HUD at the above address.
Mortgagee/Servicer should retain 1 copy

Page 2 of 2
ref. Handbook 4110.2

form HUD-2537
(06/06/2007)