HUD Issues Mortgagee Letters On Title Approval At Conveyance, Partial Claim Documentation

more+
less-

On May 31, HUD issued two mortgagee letters to update and clarify certain mortgagee requirements. In Mortgagee Letter 2013-18, HUD replaced prior, delayed guidance related to title approval at conveyance, and explained that, effective August 29, 2013 for single-family REO properties, mortgagees must pay in full prior to conveyance to HUD all taxes, homeowners’ association fees, and water, sewer or other assessments. The letter also details documentation requirements for such payments. With Mortgagee Letter 2013-19, HUD reminded mortgagees about procedures for preparing partial claim documents, calculating claim amounts, and submitting partial claims to HUD. The letter explains that, if a mortgagee does not provide HUD with the original promissory note and security instruments related to the partial claim within prescribed deadlines, the mortgagee will be required to reimburse the full claim amount, including the incentive fee. After the letter takes effect on July 30, 2013, HUD will begin issuing demand letters for the full reimbursement of all amounts associated with overdue partial claim documents.

Topics:  HUD, Land Titles, Mortgages, Required Documentation

Published In: General Business Updates, Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »