Form HUD-2537 Mortgagee's Application for Partial Settlement

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

Mortgagee's Application for
Partial Settlement
Multifamily Mortgage

OMB Approval No. 2502- 0427
(exp. 12/31/2020)

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 immediately upon receipt
and email TO:
[email protected] or

submit TO:
U.S. Department of Housing and Urban Development
Multifamily Claims Branch
451 7th Street, SW, HWAFRC, Room 6252
Washington, D. C. 20410 - 8000
On the date the assignment or deed is filed for record, an email is
to be sent to the Multifamily Claims branch.
[email protected] or faxed to (202) 619-8259,
advising the date that the assignment or deed was filed for
record. For assignments, the email or 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 Form HUD 2537, Mortgagee's Application for
Partial Settlement, Form HUD 2747, Mortgagee's Application
for Insurance Benefits, and the Form HUD 1044-D, Payment
Information Form and a copy of the 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)

$
Mortgagee/Servicer should retain 1 copy

6.

Unpaid Principal Balance

7.

$

Undisbursed Mortgage Proceeds

$
Page 1 of 2

form HUD­2537(11/2010)
ref. Handbook 4110.2

“I/We, the undersigned, certify under penalty of perjury that the information provided above is true and correct. WARNING: Anyone who knowingly submits a false claim or
makes a false statement is subject to criminal and/or civil penalties, including confinement for up to 5 years, fines, and civil and administrative penalties. (18 U.S.C. §§287,
1001, 1010, 1012; 31 U.S.C. §3729, 3802)”
This document may be executed using electronic signatures that shall be considered as original signature for all purposes and shall have the same force and effect as
original signatures. “Electronic signatures” shall include manual signatures scanned to an electronic format for transmission (e.g. via portable document format); digital
signatures created with the use of electronic authentication software; or such other means of electronic execution as may be sufficient to authenticate the document
under governing law.
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

Mortgagee/Servicer should retain 1 copy

Page 2 of 2

form HUD­2537(11/2010)
ref. Handbook 4110.2