WAIS Document Retrieval[Code of Federal Regulations]
[Title 24, Volume 2, Parts 200 to 499]
[Revised as of April 1, 2000]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR203.365]

[Page 190-191]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
PART 203--SINGLE FAMILY MORTGAGE INSURANCE--Table of Contents
 
               Subpart B--Contract Rights and Obligations
 
Sec. 203.365  Documents and information to be furnished the Secretary; claims review.

    (a) Items to be furnished the Secretary. Within 45 days after the 
deed is filed for record, in the case of a conveyance claim; or, in the 
case of a claim arising from a pre-foreclosure sale, within 30 days 
after the closing of the pre-foreclosure sale, unless extended by the 
Commissioner, the mortgagee must forward to the Secretary:
    (1) A copy of the deed to the Secretary that has been filed for 
record and the title evidence continued so as to include recordation of 
the deed; or evidence, as prescribed by the Secretary, of the closing of 
the pre-foreclosure sale.
    (2) Fiscal data pertaining to the mortgage transaction.
    (3) Any additional information or data that the Secretary may 
require.
    (b) Items to be retained by mortgagee. The mortgagee must retain all 
cash amounts, held or deposited for the account of the mortgagor or to 
which it is entitled under the mortgage transaction, that have not been 
applied in reduction of the principal mortgage indebtedness.
    (c) Claim file to be maintained by mortgagee. (1) The Secretary may 
verify the accuracy of information regarding the insurance claim either 
before payment of the claim or after payment by periodic reviews of the 
mortgagee's records. Mortgagees must reimburse the Secretary for any 
claim and interest overpaid because of incorrect, unsupported, or 
inappropriate information provided by the mortgagee, or because of 
failure to provide correct information.
    (2) Mortgagees must maintain a claim file containing documentation 
supporting all information submitted for claim payment for at least 
three years after a claim has been paid. All claim files for claims paid 
during a period relating to an unresolved or ongoing claim review must 
be maintained until final resolution of such review. Information to be 
maintained in the claim file includes receipts covering all

[[Page 191]]

disbursements as required by the fiscal data form, ledger cards covering 
the mortgage transaction, and any additional information or data 
relevant to the mortgage transaction or insurance claim.
    (3) The Secretary may review any claim file at any time during the 
three-year period after the claim has been paid. Denial of access to any 
files will be grounds for withdrawal of the mortgagee's approved lender 
status, debarment by the Secretary, or immediate suspension of all claim 
payments.
    (4) Within 24 hours of a request by the Secretary, a mortgagee must 
make available for review, or forward to the Secretary, hard copies of 
identified claim files.
    (d) Statistical sampling. HUD may use statistical sampling in 
selecting claims to be reviewed and in determining the amount due the 
Secretary because of overpayment.

[57 FR 47972, Oct. 20, 1992, as amended at 59 FR 50144, Sept. 30, 1994]



