Mortgagee Letter 2020-32 (ML 2020-32) announces a new submission method for reacquisition claims in the FHA Title II Single Family forward mortgage program. Starting September 28, 2020, when a Mortgagee corrects a deficiency in connection with a property that HUD reconveys back to it, Mortgagees will be able to submit reacquisition claims for FHA benefits through FHA Catalyst. Prior to this change, Mortgagees could only submit a paper claim.
Mortgagees remain responsible for proper claims submissions and must ensure they meet FHA requirements and standards for such submissions. By submitting claims using FHA Catalyst, Mortgagees certify that the statements and information provided are true and correct.
While this new method is optional, the change is intended to improve efficiency and provide Mortgagees with a more standard process for reacquisition claims.