4700.1 REV-1

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TABLE OF CONTENTS

PARAGRAPH PAGE

Chapter 1: ADMINISTRATIVE POLICY

1-1 Scope 1-1

1-2 Responsibilities 1-1

1-3 Contract of Insurance 1-1

1-4 Lending Area 1-4

1-5 Dealer-Contractors 1-4

1-6 Dealer-Contractor Approval 1-4

1-7 Supervision by Lending Institution 1-6

1-8 Lenders Responsibility for Service Complaints 1-7

1-9 Maintenance of Record on Each Approved

Dealer-Contractor 1-8

1-10 Reporting Irregularities to HUD 1-8

1-11 Temporary Denial 1-8

Chapter 2: DISBURSEMENT OF ELIGIBLE LOANS

Section 1 - Property Improvement Loans

2-1 General 2-1

2-2 Protective Insurance 2-1

2-3 Flood Insurance 2-1

2-4 Eligible Improvements 2-1

2-5 Ineligible Improvements 2-2

2-6 Maximum Loan Amounts 2-2

2-7 Existing Structures - Class 1 Loans 2-2

2-8 New Structures - Class 2 Loans 2-6

2-9 Restrictions on Eligibility of Loans for

Insurance 2-6

2-10 Distinction Between \"Direct Loans and

Dealer-Contractor Loans\" 2-7

2-11 Direct Loans 2-7

2-12 Dealer-Contractor Loans 2-9

2-13 Loan Documents 2-9

2-14 Borrower\'s and Dealer\'s Completion Certificate 2-11

2-15 Dealer-Contractor\'s Contract or

Sales Agreement 2-11

2-16 Borrower\'s Authorization Certificate 2-12

2-17 Advance Notice to Borrower 2-12

Section 2 - Historic Preservation Loans

2-18 Eligible Improvements 2-17

2-19 Ineligible Improvements 2-17

2-20 Eligibility Requirements 2-18

2-21 Eligible Loans 2-19

2-22 Loan Documents 2-19

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i 9/83

HUD-Wash., D. C.

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4700.1 REV-1

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Section 3 - Fire Safety Equipment In Health Care Facilities

2-23 General 2-19

2-24 Eligible Improvements 2-19

2-25 Eligible Borrowers 2-20

2-26 Eligible Properties 2-20

2-27 Fees and Charges 2-20

2-28 Prior Approval 2-20

2-29 Direct Loans 2-21

2-30 Dealer Loans 2-21

2-31 Security 2-21

2-32 Loan Requirements 2-22

2-33 Contract Proposals 2-22

CHAPTER 3. CREDIT INVESTIGATIONS AND COLLECTIONS

3-1 Credit Investigation and Approval 3-1

3-2 Eligible Notes 3-4

3-3 Finance Charges 3-5

3-4 Prepayment Rebate 3-5

3-5 Refinancing 3-6

3-6 Collections 3-7

3-7 Advance Payments 3-10

3-8 Permissible Late Charges 3-11

3-9 Pre-Claim Collection Assistance 3-11

3-10 Foreclosure 3-12

3-11 Claim for Loss 3-12

CHAPTER 4. REPORTING OF LOANS

4-1 General 4-1

4-2 Reporting Requirements 4-1

4-3 Mailing Instructions 4-2

4-4 Preparation of Reporting Forms 4-3

4-5 Clearance of Exceptions 4-3

4-6 Insurance Reserves 4-4

4-7 Computation of Term and Insurance Charge 4-5

4-8 New Loans 4-5

4-9 Insurance Charge 4-5

4-10 Refinancing 4-6

4-11 Insurance Charge Payment 4-8

4-12 HUD Assigned Numbers 4-10

4-13 Reconcilement Form 4-10

4-14 Late Charges on Insurance Charges 4-12

4-15 Refund or Abatement 4-13

4-16 Loan Acknowledgement Date 4-13

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9/83 ii

HUD-Wash., D. C.

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4700.1 REV-1

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CHAPTER 5: SETTLEMENT OF CLAIMS

5-1 Introduction 5-1

5-2 Assembling and Examining the Necessary Papers 5-2

5-3 Security Instruments 5-8

5-4 Judgments 5-9

5-5 Title I Claim for Loss (HUD-637) 5-10

5-6 Computation of Insured Loss 5-11

5-7 Example of Computation of Insured Loss Where

Unearned Finance Charge is Computed by the

\"Rule of 78\'s Method\" 5-12

5-8 The \"Actuarial Method\" 5-15

5-9 Example of Computation of Insured Loss Where

Unearned Finance Charge is Computed by the

\"Actuarial Method\" Using Actuarial Refund

Tables 5-16

5-10 Cancellation of Voluntary Repurchase of Claims 5-20

APPENDICES

1 Application for Title I Contract of Insurance, FH-21

1 Dealer-Contractor Application, FH-13

1 HUD-56001, Credit Application for Property

Improvement Loan

1 Request for Extension of Title I Claim Period, HUD-9299

1 Notice of Intention to File Title I Claim and

Request for Collection Assistance , HUD-55083

2 Request for Statement of Eligibility on Proposed

Civil Defense Shelter to be financed under Title I, FHA 226

2 Certificate of Eligibility for Carpet Installation, FH-802

2 Certificate of Eligibility for Installation of Built-In

Kitchen Appliances, FH-801

2 HUD-56002, Completion Certificate for Property

Improvement Loan

2 FH-1(HP), Certificate of Eligibility for a Historic

Preservation Loan

3 HUD-56004, Title I Loan Reporting Manifest (Reverse)

Instructions for Preparation of Tile I Loan Reporting

Manifest (Face)

3 Instructions for Preparation of Punched Tabulating Cards

Title I Punch Tabulating Card

3 Instructions for Preparation of Form FH-5, Title I

Refinancing Report

3 FH-5 Title I Refinancing Report

3 Instructions for Preparation of Title I Transfer of Note

Report, FH-6

3 FH-6, Title I Transfer of Note Report

3 Title I Loan Statement (Reverse)

3 HUD-2041, Title I Loan Statement, Initial Billing Section

3 HUD-2041, Title I Loan Statement, Renewal Billings Section

3 HUD-2041 Title I Loan Statement, Special Billings Section

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iii 9/83

HUD-Wash., D. C.

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4700.1 REV-1

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3 HUD-2041, Title I Loan Statement, Claims Section

3 HUD-2041, Title I Loan Statement, Summary Section

3 HUD-2041, Title I Loan Statement, Return Sheet

3 HUD-2041, Title I Loan Statement, Exceptions Reported

3 HUD-646, Title I Monthly Statement, Reconcilement of

Insurance Charges

3 HUD-646, Title I Monthly Statement, Reconcilement of

Insurance Charges (Reverse)

4 HUD-637, Title I Claim for Loss (Cover Sheet)

Instructions for Preparation of Title I Claim for Loss

4 HUD-637, Title I Claim for Loss, Transmittal Letter

Instructions for Preparation of Title I Claim for Loss

Application Voucher

4 HUD-637, Title I Claim for Loss Application Voucher

Instructions for Preparation of Title I Claim for Loss

Schedule-A, Deductions

4 HUD-637, Title I Claim for Loss, Schedule A, Deductions

Instructions for Preparation of Title I Claim for Loss

Schedule-B, Additions

4 HUD-637, Title I Claim for Loss, Schedule B, Additions

Amortization Schedule

4 Exact Number of Days in Fractional Part of a Year

Interest on \$1.00 at 7 percent per annum.

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9/83 iv

HUD-Wash., D. C.