What is the claim process for a defaulted FHA Short Refinance (Negative Equity)?

For claims related to Mortgages under the FHA Refinance of Borrowers in Negative Equity Positions’ initiative, or FHA Short Refinance program, the Mortgagee may file a conveyance claim and request reimbursement for all allowable Part B expenses.
 
After HUD pays the unpaid principal balance on Part A of the conveyance claim, the Mortgagee must  contact the Department of Treasury’s Claims Processor at ctsclaimsprocessor@wellsfargo.com to register and submit claims for the Emergency Economic Stabilization Act (EESA) portion of the unpaid principal balance to be paid in part by the Department of Treasury. The Mortgagee may contact the Claims Processor for support at (240) 586-7700 or (866) 846-4526.

For FHA claims processing questions Mortgagees should contact their FHA Review and Compliance Specialist in the Single Family Claims Branch or email fha_sfclaims@hud.gov

For policy information see Handbook 4000.1 Section IV.A.2.a.iii. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-05035