HUD-637 Title I Claim for Loss

Title I Property Improvement and Manufactured Home Loan Programs

637 Draft 10 17 2012

OMB: 2502-0328

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Title I Claim for Loss Instructions

OMB Approval No. 2502-0328

(exp. 10/31/2012)

Public reporting burden for this collection of information is estimated to average 1 hour 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 being collected to permit more efficient risk management of the Title I loan portfolio as well as facilitate claims processing for loan defaults. The information provides a more comprehensive basis for evaluating Title I lender underwriting practices and thereby improving risk management of the loan portfolio and also enhances management’s ability to determine appropriate policy changes affecting the Title I portfolio as a whole. Responses are required in order to obtain benefits. No assurance of confidentiality is provided.

This package contains two pages: the Transmittal (Part 1), and the Application Voucher (Part 2). Please keep a copy. Send originals to:

U.S. Department of Housing and Urban Development

Financial Operations Center

Attn: Title I Claims 52 Corporate Circle Albany, NY 12203

Accuracy and Completeness: All applicable spaces on the Transmittal and the Application Voucher must be completed and any omissions or incomplete items must be explained. Both pages must be signed and dated by an authorized official of the lending institution, and must be accompanied by the complete loan file pertaining to the loan transaction. The original note, security instrument and any related documents must be submitted with the claim.

Secured Loans: Any security interest in the loan must be legally recorded in accordance with applicable state law. If the lender's security interest has been recorded, an assignment of this security interest to the United States of America must also be recorded in the same jurisdiction prior to filing an insurance claim. Recorded assignments should include Title I case number for future identification. [For consistency purposes please use Title I instead of FHA case number].

Bankruptcy/Decedent Estate: When the lender has timely information that the borrower is involved in a bankruptcy proceeding or is deceased,

a proof of claim must be filed with the bankruptcy or probate court having

All right, title, and interest of the undersigned is hereby assigned (without warranty, except that the loan qualifies for insurance) to the United States of America (U.S. Department of Housing and Urban Development).

U.S. Department of Housing and Urban Development

Office of Housing

Federal Housing Commissioner

Sensitive Information: The information collected on this form is considered sensitive and is protected by the Privacy Act. The Privacy Act requires that these records be maintained with appropriate administrative, technical, and physical safeguards to ensure their security and confidentially. In addition, these records should be protected against any anticipated threats or hazards to their security or integrity which could result in substantial harm, embarrassment, inconvenience, or unfairness to any individual on who the information is maintained.

Time Requirements: A claim must be filed no later than 9 months after the date of default for a property improvement loan. A claim for a manufactured home purchase loan (including lots and combination loans) must be filed within 3 months after the sale of the property securing the loan, but no later than 18 months after the date of default. Exception to these deadlines can be found at 24 CFR 201.54(b)(2) and (3).

Form of Assignment: All notes and security instruments must be assigned to the United States of America. The assignment must appear on the note or other instrument being assigned, or on an attachment to the note or other instrument. The assignment must be in the following form, unless this form is not valid or generally acceptable in the jurisdiction where the property is located:

(Name of Financial Institution)

Title

Date

Please Note that filling in the information on this sample form does not constitute an assignment. The above is intended to be used only as a guide.

Refinanced Loans: Copies of the note, security instrument and all

other documents pertaining to the original loan must be retained in the loan file for the refinanced loan, and must accompany an insurance claim on the refinanced loan.

jurisdiction. However, a proof of claim need not be filed if the bankruptcy court indicates that the borrower has no assets, or if the lender determines that there will not be a probate proceeding. Documentation

of the reason why no proof of claim has been filed must accompany

the insurance claim.

Payments Received after Filing the Claim: If the borrower sends a payment to the lending institution after the insurance claim has been filed, send the payment with full identification to:

Title I Notes

P. O. Box 105664

Atlanta, GA 30348

Previous edition is obsolete

form HUD-637 (6/2012)

Title I Claim for Loss

U.S. Department of Housing and Urban Development

OMB Approval No. 2502-0328

(exp. 10/31/2012)

(Part 1) Transmittal

Office of Housing

Read Instructions carefully before completing this form.

Federal Housing Commissioner

1. Names of Borrowers

Check Items

Enclosed

Only

HUD Use

A. Documents

for Property

Improvement

and

Manufactured

Home Loans

B. Documents

for Property

Improvement

Loans Only

C. Documents

for

Manufactured

Home Loans

Only

9. Date

10. Name of Lending Institution

11. Signature & Title of Authorized Official

Previous edition is obsolete

form HUD-637 (6/2012)

3. Reason for Default

Please provide the following items listed below and any additional documents necessary for claim examination and loan servicing. Where the item does not apply, where the item does not apply, indicate “N/A”.

1. Original Note or Retail Installment Contract Assigned to US

1. Proof of Property Ownership

2. Contract of Work or Written Description with Cost Estimates

3. Completion Certificate

4. Report on Inspection of Improvements (if loan amount ≥ $7,500)

11. Appraisal of Repossessed or Foreclosed Property

9. Condition Report

7. Placement Certificate

2. Purchase Agreement

1. Verification of Deposit of Down payment

4. Invoices for Delivery and Set-up, Skirting, Air Conditioning, etc.

5. Appraisal of Existing Home and/or Lot

2. Title I Case Number

2. TruthinLending Disclosure

3. Mortgage, Deed of Trust, Other Security Instrument with Original Recorded Assignment to USA

4. Modification or Assumption Agreements

5. Credit Application

6. Consumer Credit Report

7. Verification of Employment and Income

8. Payment History

9. Loan and Collection Notes

10. Underwriters Worksheet

D. Other

Documents

For Property

Improvement

And

Manufactured

Home Loans

1. Documentation of Collection Efforts After Default

1. Documentation of Collection Efforts After Default

2. Proposed Modification Agreements or Repayment Plans

3. Notice of Default and Acceleration

4. Notice of Assignment Sent to Credit Reporting Agency

5. Notice of Bankruptcy & Proof of Claim Filed in Bankruptcy Court with Assignment to USA

6. Proof of Claim Filed with Probate Court with Assignment to USA

8. Remarks: To facilitate the processing of this claim, please explain any omissions or incomplete items.

13. Receipts for Repossession or Foreclosure Costs

14. Invoice for Sales Commission

15. Receipts for Resale Costs (e.g. reconditioning, added appliances)

12. Resale Purchase Agreement

10. Notice of Sale in Compliance with State Law

8. Evidence of Ownership or Leasehold for Lot

6. Manufacturer's Warranty on New Home

3. Manufacturer's Invoice and FHA Supplement

Title I Claim for Loss

(Part 2) Application Voucher

Read Instructions carefully before completing this form.

Title I Claim for Loss

(Part 2) Application Voucher

Read Instructions carefully before completing this form.

U.S. Department of Housing and Urban Development

OMB Approval No. 2502-0328

(exp. 10/31/2012)

OMB Approval No. 2502-0328

(exp. 10/31/2012)

Office of Housing

Federal Housing Commissioner

Property Improvement

Manufactured Home

1. Type of Loan

2. Title I Case Number

Applicant

HUD Use Only

10. Original Amount of Insured Loan

11. Last Loan Balance

12. Total Amount paid by Borrower (Principal =

Interest =

)

15. Name & Address of Lending Institution

HUD Use Only

16. Name & Title of Authorized Official (type or print)

X Signature

Previous edition is obsolete

form HUD-637 (6/2012)

□

Yes

6. Term of Loan

7. Amt. of Each Installment

17. Date of Submission

3. Contract Number (HUD Lender ID)

9. Name, (last known) Address, (for each borrower) Social Security Number

4. First Installment Date

5. Date of Default _*

(mm/dd/yyyy)

Borrower Deceased?

Borrower Bankrupt?

(mm/dd/yyyy)

Mail Returned from Last Address?

8. Number of Installments Made by Borrower

Borrower Bankrupt?

Borrower Deceased?

Deductions 13. Amounts Retained by Lender after Default (e.g. suspense payments, escrow balance)

Amounts Retained by Lender after Default (e.g., suspense payments, escrow balance)
Best Price Obtainable (MH Only)

Additions 14. a. Repossession and Preservation Costs (MH Only)

b. Sales Commission (MH Only)

c. Uncollected Court Costs (Paid Directly to Courts)

d. Attorney’s Fees (Not to Exceed $500 for PI $1,000 MH)

e. County Recording Costs (PI Only)

Deductions 13. Amounts Retained by Lender after Default (e.g. suspense payments, escrow balance)

Amounts Retained by Lender after Default (e.g., suspense payments, escrow balance)
Best Price Obtainable (MH Only)

Additions 14. a. Repossession and Preservation Costs (MH Only)

b. Sales Commission (MH Only)

c. Uncollected Court Costs (Paid Directly to Courts)

d. Attorney’s Fees (Not to Exceed $500 for PI $1,000 MH)

e. County Recording Costs (PI Only)

* Defined as 30 days after the due date of the first missed payment.

Certification: The undersigned applies for the amount of insurance benefits due under its contract of insurance and the regulations issued in accordance with Title I of the National Housing Act for the loan identified above. In making this application for insurance benefits, the undersigned certifies that (a) the application is just and in accordance with the terms of the contract of insurance and the Title I regulations; (b) all information shown above is true and correct; (c) all expenses have actually been incurred and are reasonable and customary in the area where the property is located; (d) all repairs identified as repossession and preservation costs were necessary to protect and preserve the property while awaiting resale; and (e) all foreclosure or repossession activities have been carried out in full compliance with applicable State and local laws. Upon request, the undersigned will furnish the Department with an accounting of any receipts or disbursements included in the amounts shown above.

I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate.

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)

* Defined as 30 days after the due date of the first missed payment.

I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate.

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)

Telephone Contact Number (include area code) & email address

Mail Returned from Last Address?

LaJuan Gladden

12211 Kingswell Street Bowie, MD 20721

555-55-5555

Name, (last known) Address Social Security Number

Yes

File Type	application/msword
Author	h45362
Last Modified By	atpotts
File Modified	2012-10-31
File Created	2012-10-31