Form HUD-637 Title I Claim for Loss

Title I Claim for Loss
Instructions

OMB Approval No. 2502-0328
(exp. 08/31/2009)

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

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.
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 whom the information is maintained.

This package contains three sets of forms: the Transmittal (Part 1),
the Application Voucher (Part 2), and the Worksheet (Part 3). Please
read these instructions, then separate the three Parts and complete
them. Keep a copy of Part 1, a copy of Part 2, and a copy of Part 3. Send
originals to:
U.S. Department of Housing and Urban Development
Financial Operations Center
Attn: Title I Claims
52 Corporate Circle
Albany, NY 12203
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.
Each claim submitted after the expiration of the maximum claim filing
period must be accompanied by a written explanation of the reasons for
the late submission.
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 forms 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, except where State or local law requires the
lender to retain these documents.
Itemized Statements: Documentation of all repossession and preservation costs (including hazard insurance premiums, personal property
taxes and site rental), transportation costs, sales commissions, uncollected court costs, attorney's fees, recording costs and other applicable
expenses must be furnished with the claim submission. If the claim
involves a manufactured home lot loan or combination loan classified as
realty, any expenses for real estate taxes, special assessments, hazard
insurance premiums or transfer taxes must also be documented. In
determining the best price obtainable on a repossessed manufactured
home (line 20d on the Application Voucher), the cost of repairs to make
the home marketable and the cost of delivery and set-up on a new site
(transportation NTE $1,000 per module) may be deducted from the
actual sales price only if itemized statements or invoices for these costs
are furnished.
Secured Loans: Any security interest in the loan must be recorded in
the manner specified by applicable State law in the jurisdiction where the
property is located. If the lender's security interest has been recorded,
an assignment of this security interest to the United States of America
must be recorded in the same jurisdiction prior to filing an insurance
claim.

Previous edition is obsolete

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 jurisdiction. The proof of claim must be
assigned to the United States of America prior to filing an insurance
claim. 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.
Form of Assignment: All notes, security instruments, judgments
and proofs of claim 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:
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).
_____________________________________________________________
(Name of Financial Institution)
By__________________________________________________________
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.
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

ref. Handbook 1060.2

form HUD-637 (2/2000)

Title I Claim for Loss
(Part 1) Transmittal
Read Instructions carefully before completing this form.

OMB Approval No. 2502-0328
(exp. 08/31/2009)

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

1. Names of Borrowers

2. Contract Number

4. To Whom Proceeds Check was Paid

5. Date of Check

3. Title I Case Number

6. Reason for Default

7. Please provide the following items as appropriate and assemble the documents in the order indicated.
Where the item does not apply, indicate "N/A" in the next column.

A. Documents
for Property
Improvement
and
Manufactured
Home Loans

B. Documents
for Property
Improvement
Loans Only
C. Documents
for
Manufactured
Home Loans
Only

D. Other
Documents
for Property
Improvement
and
Manufactured
Home Loans

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
1.
2.
3.
4.
5.
6.

Check Items
Enclosed

HUD Use
Only

Title I Claim for Loss Application Voucher (original and 1 copy)
Explanation for Late Claim Filing
Original Note or Retail Installment Contract Assigned to USA
Truth-in-Lending Disclosure
Mortgage, Deed of Trust, Other Security Instrument with Original Recorded Assignment to USA
Modification or Assumption Agreements
Credit Application (Social Security Numbers must be included)
Consumer Credit Report
Verification of Employment and Income
Verification of Self-Employment Income
Evidence of Borrower's Interest in the Property
Contract of Work or Written Description with Cost Estimates
Completion Certificate
Report on Inspection of Improvements (if loan amount exceeds $7,500)
Prior HUD Approval of Borrower's Credit (if total loans exceed $25,000)
Verification of Deposit of Down payment
Calculation of Debt-to-Income Ratios
Purchase Agreement
Manufacturer's Invoice and FHA Supplement
Invoices for Delivery and Set-up, Skirting, Air Conditioning
Invoices or Appraisals for Appurtenances
Value Determination on Trade-in
HUD-Approved Appraisal of Existing Home and/or Lot
Advance Notice of Disbursement to Dealer or Seller
Manufacturer's Warranty on New Home
Placement Certificate
Evidence of Ownership or Leasehold for Individual Homesite
Certification of Park or Individual Homesite Approval
Evidence of Abandonment, Voluntary Conveyance or Surrender
Condition Report on Vacant or Abandoned Home
Notice of Sale in Compliance with State Law
HUD-Approved Appraisal of Repossessed or Foreclosed Property
Resale Purchase Agreement
Itemized Costs of Repossession or Foreclosure
Invoice for Sales Commission
Documentation of Efforts to Enforce Recourse
Documentation of Collection Efforts After Default
Proposed Modification Agreements or Repayment Plans
Notice of Default and Acceleration
Notice of Assignment Sent to Credit Reporting Agency
Notice of Bankruptcy & Proof of Claim Filed in Bankruptcy Court with Assignment to USA
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.

9. Date

10. Name of Lending Institution

Previous edition is obsolete

11. Signature & Title of Authorized Official

Send original to HUD; copy to lender

ref. Handbook 1060.2

form HUD-637 (2/2000)

Read Instructions carefully before completing this
form.
1. Type of Loan

Property Improvement

OMB Approval No. 2502-0328
(exp. 08/31/2009)

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

Title I Claim for Loss
(Part 2) Application Voucher

2. Contract Number

15. Names, Current Addresses, & Social Security Numbers of Borrowers

Manufactured Home

3. Title I Case Number

4. Date Loan Disbursed (mm/dd/yyyy)

5. First Installment Date
(mm/dd/yyyy)

6. Date of Default
(mm/dd/yyyy)

8. Face Amount of Loan

9. No. of Installments

$

7. Interest Rate

SSN

%
10. Amt. of Each Installment

SSN

16. Names, Addresses, & Social Security Numbers of Co-Makers or Co-Signers

$

11. Date of Demand for Full Unpaid Balance 13. Reason for Default Code (HUD Use Only)
(mm/dd/yyyy)
12. Monthly Statement on Which Acknowledged
(mm/dd/yyyy)

14. Claim Type: (HUD Use Only)

Regular

SSN

SSN

Judgment

17. Amount of Insured Loan
18. Unpaid Loan Obligation at Date of Default
19. Full Installments Received Prior to Default (No. of Installments.:
)
(Simple Int. Loans: Principal =
Interest =
)
Deductions 20 a. Payments Received after Default (itemize on line 27)
b. Lender Entitlements after Default
c. Amounts Retained by Lender after Default
20d:Totals
d. Best Price Obtainable
from back
e. Excess Funds from Foreclosure Proceedings
of page
21. Net Unpaid Loan Obligation (line 18 minus lines 20a thru 20e)
22. Interim Interest (7% per annum of line 18 for
days)
Additions 23 a. Repossession and Preservation Costs (Transportation NTE $1,000/module)
23a, c, & e:
Totals from
back of page

Applicant

HUD Use Only

b.
c.
d.
e.
f.

Sales Commission
Uncollected Court Costs
Attorney's Fees (Not to Exceed $500 for PI $1,000 MH)
Recording Costs and Other Expenses
If Manufactured Home Lot Loan or Combination Loan Classified as Realty
• Real Estate Taxes
• Special Assessments
• Hazard Insurance Premiums
• Transfer Taxes
24. Subtotal (lines 21 thru 23f)
25. Less Coinsurance (10% of line 24)
26. Total Insured Loss (line 24 minus line 25)

27. Payments received after default (itemize line 20a above)
Date
Amount
Date
Amount

Date

Amount

Date

Amount

Date

Date

Date

Amount

Date

Amount

Total Amount

Amount

Date

Amount

Amount

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)
28. Name & Address of Lending Institution

HUD Use Only

Telephone Contact Number (include area code)
29. Name & Title of Authorized Official (type or print)

30. Date of Submission

Name & Title of Authorized Official (type or print)

Insurance Verification
Initials

X Signature

Previous edition is obsolete

Date

X Signature

Send original and one copy to HUD; second copy to lender

ref. Handbook 1060.2

form HUD-637 (2/2000)

Title I Claim for Loss

(Part 3) Claim Calculation
Worksheet

OMB Approval No. 2502-0328
(exp. 08/31/2009)

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

Was there a debtor complaint on this loan about the repairs?
If this is a bankruptcy, has the payment plan been completed?

Yes
Yes

No

If "Yes," how was it resolved? Please explain.

No

Show amounts and nature of all fees or money already collected from the debtor or other parties for charges related to this claim. If none, put zero.

If this is a Manufactured Home, please provide
a. State of Sale
b. Date of Notice of Sale

c. Date of Reposession

d. Date of Sale

Items shown below pertain to questions or data on Part 2 of this form in the same number order. Please complete all information
pertaining to this claim for loss and, where applicable, record the totals on Part 2 of the form after the data has been itemized below.
Questions regarding how to use this Worksheet should be directed to Title I Claims Examination.
1. Type of Loan: For Manufactured Homes only, please check the appropriate box
Single wide 14 ft. to 18 ft. b.
Double wide 19 ft. to 28 ft. c.
Triple wide 29 ft. to 32 ft.
a.
20. Deductions: Enter the greater of 1, 2, or 4 below on Part 2 of this form under 20d.
d. Best Price Obtainable
1. Appraised Value for "as is" condition _________________________
3. List Repairs and/or Other Items to make Marketable and deduct from Gross Sales Price
Repairs

d.

Over 32 ft.

2. Gross Sales Price $
Amount
__________________
__________________
__________________
__________________
__________________
Total Repairs $

4. Deduct Repair/Other Items from Gross Sales Price to determine ....
Net Sales Price $
Note: When there are no deductions under 4, use greater of Appraised Value or Gross Sales Price.
23. Additions
a. Repossession and Preservation Costs (Transportation NTE $1,000 per module). Note: Include Appraisal fee and Taxes.
Itemized Repossession
Amount
Itemized Preservation
Amount
___________________
__________________
___________________
__________________
___________________
__________________
___________________
__________________
___________________
__________________
___________________
__________________
___________________
__________________
Subtotal ................................
___________________
Subtotal ........................ __________________
Total Repossession and Preservation Costs $
c. Uncollected Court Costs: Item
Amount
1.
__________________
2.
__________________
3.
__________________
Total Uncollected Court Costs $
e. Recording Costs and Other Expenses
Types of Recording Costs
From Whom
To Whom
Amount
1.
1.
_________________
2.
2.
_________________
Types of Other Expenses
1.
2.
3.

Amount
_________________
_________________
_________________
Total Recording Costs and Other Expenses $

Previous edition is obsolete

ref. Handbook 1060.2

form HUD-637 (2/2000)