What is the proper methodology for listing the Section 235 subsidy payment from HUD when filing a claim through FHA Connection?
Answer – Upon initiation of foreclosure on a Section 235 loan, the mortgagee is required to suspend the Section 235 subsidy. Any subsidy received during the mortgagor’s delinquency should be applied to the mortgagor’s account. Question 11 – If a mortgage company sells a portfolio of loans to another institution and retains servicing, is it possible to file a Single-Family Application for Insurance Benefits in the mortgagee’s name and receive proceeds to be forwarded to the new institution or will the claim need to be filed in the name of the new holder? Answer – If the holder of record has provided authorization for a servicing mortgagee to act on its behalf, specifically allowing the servicing mortgagee to receive claim proceeds on its behalf, it would be permissible to identify the servicing institution as the payee for HUD claim purposes. However, the servicing institution must be an FHA-approved mortgagee and must also have identified to HUD both a bank account and a payee address
Related Questions
- What is the proper methodology for listing the Section 235 subsidy payment from HUD when filing a claim through FHA Connection?
- Is a claim listing required for preliminary amendments present on the filing date of the application?
- DOES BRANCH AND LEE EXPECT PAYMENT BEFORE THE EXTERNAL AUDITOR HAS SIGNED OFF THE CLAIM?
