24 C.F.R. § 203.371 Partial claim.
Title 24 - Housing and Urban Development
(a) General. Notwithstanding the conveyance, sale or assignment requirements for payment of a claim elsewhere in this part, HUD will pay partial FHA insurance benefits to mortgagees after a period of forbearance, the maximum length of which HUD will prescribe, and in accordance with this section. (b) Requirements. The following conditions must be met for payment of a partial claim: (1) The mortgagor has been delinquent for at least 4 months or such other time prescribed by HUD; (2) The amount of the arrearage has not exceeded the equivalent of 12 monthly mortgage payments; (3) The mortgagor is able to resume making full monthly mortgage payments; (4) The mortgagor is not financially able to make sufficient additional payments to repay the arrearage within a time specified by HUD; and (5) The mortgagor is not financially qualified to support monthly mortgage payments on a modified mortgage or on a refinanced mortgage in which the total arrearage is included. (c) Repayment of the subordinate lien. The mortgagor must execute a mortgage in favor of HUD with terms and conditions acceptable to HUD for the amount of the partial claim under §203.414(a). HUD may require the mortgagee to be responsible for servicing the subordinate mortgage on behalf of HUD. (d) Application for insurance benefits. Along with the prescribed application for partial claim insurance benefits, the mortgagee shall forward to HUD the original credit and security instruments required by paragraph (c) of this section. [61 FR 35018, July 3, 1996, as amended at 62 FR 60130, Nov. 6, 1997]
Title 24: Housing and Urban Development
PART 203—SINGLE FAMILY MORTGAGE INSURANCE
Subpart B—Contract Rights and Obligations
Claim Procedure
§ 203.371 Partial claim.
