ASSIGNMENTS 4330.4

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CHAPTER 3: ASSIGNED HOME MORTGAGES

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3-1 GENERAL.

A mortgagee shall be entitled to receive insurance benefits upon

assignment of a defaulted mortgage to the Secretary if HUD agrees to

accept the assignment (Section 230 of the National Housing Act, 12 USC

1715, 24 CFR 203.650 through 203.660, 203.664 and 203.665). HUD will

also accept an assignment if the Secretary previously sold the

mortgage or the property and the mortgagee is unable to complete

foreclosure because of a defect in the mortgagee instrument, a defect

in the mortgage transaction, or a defect in title which existed prior

to the time the mortgage assignment was filed for record (24 CFR

203.390). The procedures in this chapter will be followed for filing

both of these types of assignment claims.

3-2 TIME REQUIREMENTS.

The mortgagee must comply with the following time requirements when

submitting a claim involving an assigned mortgage which is in default.

Failure to comply will result in curtailment of debenture interest to

the date the action should have been taken or to the date to which it

was extended by HUD (24 CFR 203.404(a)(4)).

A. File the mortgage assignment for record within 30 calendar days

after the date of HUD\'s written agreement to accept the

assignment or within such additional time as HUD may authorize in

writing.

B. Submit the title evidence with attachments to the local HUD

office, ATTN: Field Counsel, on the date the mortgage assignment

is filed for record.

C. Submit the originals of Parts A and B, Form HUD-27011, with

attachments, including the MIC and title submission certification

to HUD Headquarters on the date the mortgage assignment is filed

for record. HUD expects to receive these documents in HUD

Headquarters within 10 days of the date of assignment when

properly mailed. Therefore any claims received after ten

calendar days from the date of the assignment will be considered

late.

D. Submit a copy of Parts A and B and the original of Part D, Form

HUD-27011, with attachments, to the local HUD office, ATTN:

Single Family Loan Management Branch on the date the mortgage

assignment is filed for record.

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Page 3-19/94

4330.4 ASSIGNMENTS

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3-3 EXTENSION OF TIME REQUIREMENTS.

If the mortgagee cannot comply with the time requirement for paragraph

A. above because of circumstances beyond its control, it should

submit form HUD-50012, Mortgagee\'s Request for an Extension of Time,

to the local HUD office ATTN: Single Family Loan Management Branch to

request an extension of time. See paragraph 1-6.

3-4 ASSIGNMENT REQUIREMENTS.

A. The Security Instrument (Mortgage).

1.The security instrument, together with any amendments or

modification thereof, shall be assigned to \"The Secretary of

Housing and Urban Development of Washington, D.C., his/her

successors and assigns\", with the address of the local field

office and \"Attention: Single Family Loan Management

Branch\". (In those jurisdictions where it is necessary to

name the person who holds such office, the assignment should

be made to the person holding such office \"as Secretary of

Housing and Urban Development, his/her successors and

assigns\" at the time of the preparation of the assignment

form.)

2.The assignment of the security instrument must be in a form

which satisfactorily meets the legal requirements of the

jurisdiction where the property is situated, and must be a

valid assignment. The assignment must contain the following

warranty:

\"Without recourse or warranty, except that the undersigned

hereby warrants that:

a.No act or omission of the undersigned has impaired the

validity and priority of the said security instruments;

b.The security instrument is a good and valid first lien

and is prior to all mechanics\' and materialmen\'s liens

filed of record regardless of when such liens attach,

and prior to all liens, encumbrances, or defects which

may arise except such liens or other matters as have

been approved by the assignee hereunder;

c.The sum of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Dollars \[in blank

space insert amount of the unpaid principal balance\]

together with the interest from the
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_ day of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
19\_\_\_\_\_\_, at the

rate of \_\_\_\_\_\_ %

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9/94 Page 3-2

ASSIGNMENTS 4330.4

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per annum, computed as provided in the Note, is

actually due and owing under the said Note;

d.The undersigned has a good right to assign the said

security and credit instruments.\"

B.The Credit Instrument (Note). The original credit instrument

shall be endorsed to the Secretary of Housing and Urban

Development in the following manner:

\"All right, title and interest of the undersigned to the

within credit instrument is hereby assigned to the Secretary

of Housing and Urban Development of Washington, D.C.,

his/her successors and assigns.\" (In those jurisdictions

where it is necessary to name the person holding such

office, the assignment should be made to the person holding

such office \"as Secretary of Housing and Urban Development,

his/her successors and assigns,\" at the date of the

preparation of the assignment form.)

(If the endorsement is dated, it must bear the same date as

the date of the execution of the assignment of the security

instrument.)

3-5 TITLE EVIDENCE.

HUD will accept an assignment and pay the insurance claim before

examining the title evidence to determine whether it complies with

Federal requirements. In the event title deficiencies appear after

the claim has been paid, the mortgagee will be required to correct the

deficiencies or reimburse HUD. (24 CFR 203.363 and 203.366)

A.Submission to Field Office. Title evidence held by the mortgagee

must be sent to the local HUD office, ATTN: Field Counsel, on

the date the assignment is filed for record. The title evidence

must be accompanied by:

1.The original security and credit instruments, including

endorsement of the Note to HUD.

2.A copy of the assignment to HUD that was submitted for

recordation. NOTE: The original recorded assignment must

be sent to the local HUD office, ATTN: Field Counsel, as

soon as it is received from the recording authority.

3.Copies of all intervening assignments.

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Page 3-3 5/95

4330.4 Rev - 1 ASSIGNMENTS

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4.The mortgagee\'s original title policy evidencing the loan to

be a first lien of record. The title evidence need not be

extended to reflect the assignment to HUD.

Note:Certificate of title with master policies or ALTA

short form policies are not acceptable forms of

title evidence for HUD.

5.A copy of Part A.

6.If the property is damaged a letter certifying that the

conditions of 24 CFR 203.379 (a)(1) or (2) have been met.

7.If the mortgage or the property was sold by HUD and 24 CFR

203.390 applies, a statement that describes the defect or

impairment of title.

B.Title Submission Certificate. The mortgagee must execute a Title

Submission Certificate in the form shown in Appendix 16 and

submit it to HUD Headquarters and the local HUD office with Parts

A and B of Form HUD-27011. This certification will inform both

offices that the title evidence has been sent to Field Counsel

and is awaiting approval.

C.Title Rejection. If Field Counsel rejects the title evidence as

submitted the mortgagee must resolve all reported deficiencies.

If the deficiencies are not resolved within 30 days the mortgage

may be reassigned and the mortgagee will be required to reimburse

HUD for all insurance benefits and costs. When the deficiencies

have been resolved the mortgagee may resubmit the claim but

interest will be computed only to the date an acceptable

assignment should have been recorded.

D.Title Approval. After the title evidence has been approved the

field office will send the mortgagee a title approval letter

which must be retained in the claim records file.

3-6 OCCUPANCY OF PROPERTY.

To be eligible for assignment, the property must be the mortgagor\'s

principal place of residence unless this criterion is waived by HUD.

Therefore, the property must be occupied by the mortgagor unless HUD

waives the criterion. HUD also makes an exception concerning the

occupancy requirement if the mortgage is being assigned pursuant to 24

CFR 203.390.

3-7CONDITION OF PROPERTY AT ASSIGNMENT. (24 CFR 203.379) When a mortgage

is assigned to the commissioner, the property shall be undamaged by

fire,

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9/94 Page 3-4

ASSIGNMENTS 4330.4

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earthquake, flood, tornado, hurricane or damage caused by the

mortgagees failure to take action to protect and preserve a vacant or

abandoned property if the mortgage was insured on or after January 1,

1977\.

A.Repairs by Mortgagee.

1.Before assigning the mortgage to HUD, the mortgagee must

repair such damage at its own cost. (24 CFR 203.379(a))

2.The mortgagee is not required to repair damage resulting

from causes other than those itemized above unless the

repairs are requested in writing by HUD, or the repairs are

necessary to protect and preserve the property until

assignment of the mortgage to HUD. The cost of any such

repairs should be entered in Part C. If the property is

damaged by such other causes, Item 24 must be marked \"No\"

and the nature of the damage and the reason for denial of

responsibility must be explained in the Mortgagee\'s Comments

section of Part A.

3.HUD will not reimburse the mortgagee for repairs to or

maintenance of property occupied by the mortgagor.

B.Unrepaired Assignment.

If the prior approval of HUD is obtained, property damaged by the

causes itemized in paragraph A-1 may be in an unrepaired

condition at the time of assignment and there will be deducted

from the insurance benefits, HUD\'s estimate of the cost to repair

the damage or any insurance recovery received by the mortgagee,

whichever is greater. (24 CFR 203.379(a)(1)) The deduction will

be limited to the amount of insurance recovery if the property

has been damaged by fire and the mortgagee certifies that the

conditions of 24 CFR 203.379(a)(2) relating to cancellation or

reduction of insurance coverage are met. The mortgagee should

request from the local HUD office their estimate of the cost of

repairing the damage, and permission to convey the property

without repairs. HUD\'s estimate must be entered in Item 27, Part

A.

3-8 PROTECTION AND PRESERVATION OF PROPERTIES.

When a mortgage is accepted for assignment the property is usually

occupied by the mortgagor and not subject to protection and

preservation requirements. (24 CFR 203.377) There may be occasions,

however, where the property is vacant at the time of, or prior to,

assignment of the mortgage.

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Page 3-59/94

4330.4 ASSIGNMENTS

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A vacant property must be protected and preserved while it is in the

possession of the mortgagee so that it will not be damaged at the time

of assignment. A prudent mortgagee will protect and preserve a vacant

property to avoid potential damage to the property and surcharges to

their claim. HUD will reimburse the mortgagee for required

preservation and protection costs within locally established limits

when these expenditures are adequately documented. See Chapter 2 for

detailed requirements.

3-9 HAZARD INSURANCE.

Do not cancel the hazard or flood insurance policy. The mortgagee

must notify the insurance carrier of the change in mortgagee and must

authorize the carrier to amend the loss payable clause substituting as

mortgagee \"Secretary of Housing and Urban Development his/her

successors and assigns IN CARE OF (and insert the address of the local

HUD field office)\". The amendment should be effective as of the date

the mortgage is assigned. A copy of the letter from the mortgagee to

each insurance carrier, authorizing the amendment, should be submitted

to the local HUD office, Single Family Loan Management Branch with the

original insurance policy.

3-10 ASSIGNMENT COSTS.

HUD will reimburse mortgagees for such costs and attorney\'s fees as

were properly incurred in connection with the defaulted mortgage and

its assignment to HUD.

A.Allowable Costs. A complete listing of allowable or unallowable

costs would not be practical because procedural requirements and

terminology vary in different jurisdictions. Generally, HUD will

reimburse a mortgagee for:

1.Fees which must be paid to public officials such as

recorders of deeds or public trustees.

2.Costs which are required by law.

3.Fees and costs which are necessarily incurred and are

reasonable and customary in the area such as attorney fees.

B.Costs Not Reimbursable. HUD will not reimburse a mortgagee for:

1.Fees and costs which exceed reasonable and customary fees

for the area. If a fee exceeds the customary fee for the

area, for adequate reason, the excess may be paid by filing

a supplemental claim (see paragraph 1-12).

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9/94 Page 3-6

ASSIGNMENTS 4330.4

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2.Costs which are not necessarily incurred or are required

because of dilatory service, such as courier service or

express mail or property inspection by attorneys.

3.Costs which are overhead items such as postage, telephone,

duplicating or collection services. The attorney\'s or

trustee\'s overhead costs should be included in their fee.

4.Costs for Title Policy.

3-11 NOTICE TO MORTGAGOR.

A.On the day the assignment is filed for record notify the

mortgagor that HUD is now the mortgagee and HUD will provide

payment instructions.

B.If the mortgagee receives payments from the mortgagor after the

assignment is filed for record send the funds, with the FHA case

number, to HUD through the HUD Lock Box at the following address:

Payment Processing Center P.O. Box 105652 Atlanta, Georgia

30348

3-12 NOTICE TO TAXING AUTHORITY.

The mortgagee must instruct the taxing authority to send tax bills to

the local HUD office. Any tax bills received by the mortgagee after

the assignment was filed for record must be sent by the mortgagee to

the local HUD office.

3-13 CLAIM PAYMENT.

Upon receipt of Parts A and B, Form HUD-27011 and the required

attachments, in Headquarters, HUD will pay to the mortgagee the unpaid

principal balance of the mortgage and an amount determined by:

A.Adding the Following Items.

1.Any mortgage interest accrued and unpaid at the time of

assignment,

2.Any advances made under the mortgage and approved by HUD,

3.Reimbursement for approved costs and attorney\'s fees, and

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Page 3-79/94

4330.4 ASSIGNMENTS

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4.Debenture interest on the net claims amount (excluding

mortgage interest) from the date of assignment to the date

of payment unless such interest is curtailed because of the

mortgagee\'s failure to meet the time requirements identified

in paragraph 3-2.

B.Deducting the Following Items.

1.Any cash retained by the mortgagee, including amounts held

or deposited for the account of the mortgagor or to which it

is entitled under the mortgage transaction that have not

been applied in reduction of principal, and

2.Any damage or insurance recovery reported in Item 27.

3-14 DOCUMENTS TO BE SUBMITTED.

It is very important that all required documentation be forwarded to

the appropriate locations in a timely manner. Failure to meet any of

the documentation requirements could jeopardize all or part of the

claim reimbursement. The various documentation requirements imposed

on the mortgagee are designed to provide critical control and

notification functions which enable HUD to expedite the payment of a

claim.

All documents must be sent to HUD Headquarters or the local HUD Office

on the date the assignment is filed for record, as follows:

A.TO HUD HEADQUARTERS.

1.The original Parts A and B.

2.The original Mortgage Insurance Certificate.

3.The Title Submission Certificate.

4.Worksheet showing reallocation of mortgage payments if

capitalized method of accounting is used.

5.Copy of the Mortgage Note if the Mortgage is a GPM, ARM or

GEM.

B.TO THE LOCAL HUD OFFICE, ATTN: SINGLE FAMILY LOAN MANAGEMENT

BRANCH.

1.Copies of Parts A and B.

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9/94 Page 3-8

ASSIGNMENTS 4330.4

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2.The original of Part D.

3.A copy of the Title Submission Certificate.

4.The original of all hazard insurance policies and a copy of

the notice to the insurance carrier requesting that HUD be

named beneficiary in the mortgagee clause.

5.Copy of the last tax bill paid.

6.All ledger cards or payment records. If capitalization

method is used, attach a worksheet showing allocation of

payments per mortgage terms.

7.Section 235 loans. If not provided with the assignment

request documents, send the last two recertifications (Forms

HUD-93101, HUD-93101A); employment verifications; Form

HUD-93115, Notice to Homeowner (where appropriate); and Form

HUD-93114, Notice of Suspension, Termination and

Reinstatement of Assistance Payments Contract (where

appropriate).

8.If the case is subject to Section 235 recapture of

assistance payments, provide the total dollar amount of

assistance applied to the account through the date of

assignment.

9.Copy of buydown agreement, if any, and all documents which

relate to the payment amount or application of the payments.

10.Any additional information which HUD may require.

C.TO THE LOCAL HUD OFFICE, ATTN: FIELD COUNSEL.

1.Original mortgage.

2.Original note with endorsement.

3.Copy of assignment to HUD.

4.Copies of all intervening assignments.

5.Mortgagee\'s original title policy evidencing the loan to be

the first lien of record.

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Page 3-99/94

4330.4 ASSIGNMENTS

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6.A copy of Part A.

7.A copy of HUD\'s letter approving assignment of a damaged

property under 24 CFR 203.379(a), if applicable.

8.The mortgagee\'s certificate that the conditions of 24 CFR

203.379(a)(2), relating to fire damage, have been met, if

applicable.

9.A statement relating to title defects if 24 CFR 203.390

applies.

NOTE: See paragraph 1-8 for file documentation requirements.

The following Table (Table 3.1) illustrates the document submission

requirements for assignment claims.

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9/94 Page 3-10

ASSIGNMENTS 4330.4

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ASSIGNMENT CLAIM SUBMISSION REQUIREMENTS

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

\* GRAPHICS MATERIAL IN ORIGINAL DOCUMENT OMITTED \*

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

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Page 3-119/94

4330.4 ASSIGNMENTS

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3-15 CLAIM PREPARATION - ASSIGNMENTS.

The claim must be completed as described below using HUD Form-27011,

Single Family Application for Insurance Benefits. In order to avoid

delay in payment, the claim must be complete and accurate and contain

all information requested. Note paragraph 1-3 concerning

pre-screening of applications.

In many instances, the instructions provided in Chapter 2, Conveyances

apply equally in assignment cases. When this occurs the words \"Same

as Conveyance\" appear after the Item title and the conveyance

instructions for that item are repeated verbatim for convenience.

Note:Mortgagees do not calculate debenture interest in assignment

claims.

A.Instructions for the Completion of HUD Form 27011, Part A,

Initial Application. The following item by item instructions are

to be used when completing HUD Form 27011, Part A, for assignment

claims.

PART A

INITIAL APPLICATION

Item 1 Claim Type. Place an \"X\" in the space for Claim

Type 02 = Assignment.

Items 2 & 3 FHA Case Number and Section of Act Code

(Same as Conveyance). Enter the FHA Case Number

and the appropriate Section of the National

Housing Act ADP code. All mortgages endorsed

since 1962 use the first style shown below, with

three numerals, then a hyphen, then six numerals

(or seven including the check digit). Be sure too

include the hyphen on the claim, whether the claim

is submitted on paper or through electronic data

interchange (EDI), even though CHUMS may omit it.

The three other acceptable FHA case number

formats, for pre-1962 mortgages, are also

illustrated below. All models include the Section

of the Act (SOA) ADP codes. The formatted case

number appears on the MIC or the advanced notice

of S/F Annual MIP unless the case is included in

CHUMS, as in \"5\" below.

\(1\) X X X - X X X X X X X X X

or X X X - X X X X X X X

FHA Case No. SOA ADP Code

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5/95 Page 3-12

ASSIGNMENTS 4330.4

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\(2\) X X - X X X X X X X X X

FHA Case No. SOA ADP Code

\(3\) X X X X X X - X X X X X

FHA Case No. SOA ADP Code

\(4\) X X X - X X X X X X X X

FHA Case No. SOA ADP Code

\(5\) X X X X X X X X X X X X X

FHA Case No. SOA ADP Code

(used in CHUMS)

Item 4 Default Reason Code (Same As Conveyance). Enter

the applicable code number from the default

reasons listed below. If code 15 is used, explain

the reason on the reverse of Part A under

\"Mortgagee\'s Comments.\"

CODE REASON

01 =Death of a principal mortgagor

02 =Illness of a principal mortgagor

03 =Illness of mortgagor\'s family

member

04 =Death, mortgagor\'s family member

05 =Marital difficulties

06 =Curtailment of income (reduction of

income of a borrower)

07 =Excessive obligations - same

income, including habitual

nonpayment of debts

08 =Abandonment of property

09 =Distant employment transfer

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Page 3-139/94

4330.4 ASSIGNMENTS

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10 =Neighborhood problem

11 =Property problem

12 =Inability to sell property

13 =Inability to rent property

14 =Military service

15 =Other reasons (explain in

Mortgagee\'s Comments)

Item 5 Endorsement Date (Same as Conveyance). Enter the

endorsement date that appears on the Mortgage

Insurance Certificate. If the mortgage was

insured before MIC\'s were issued, enter the

endorsement date that appears on the note.

Item 6 Date Form Prepared. Enter the date this form is

completed and submitted to HUD. To avoid interest

curtailment, Parts A and B must be submitted on

the day the assignment is filed for record and

title evidence is submitted to the local HUD

office. See Pars. 3-4.

\* Note: Although HUD permits 10 days from this date

to receive the HUD-27011 before curtailing

interest for late submission, you are required to

enter in Item 6 the date of the actual submission/

mailing date of the form.\*

Item 7 Due Date of First Payment to Principal and

Interest (Same as Conveyance). Enter the date the

first payment to Principal and Interest was due.

Obtain this date from the mortgage note.

Item 8 Due Date of Last Complete Installment Paid (Same

as Conveyance). Enter the date the last complete

installment paid was due, not the date it was

paid. This item should be taken from the payment

ledger. If no payments have been made, enter the

date in Item 7 (Due Date of the First Payment to

Principal and Interest).

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3/94 Page 3-14

ASSIGNMENTS 4330.4

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Note that the date in this item will always be the

first of the month.

Item 9 Date of Possession and Acquisition of Marketable

Title. Not applicable.

Item 10 Date Deed or Assignment Filed for Record or Date

of Closing or Appraisal. Enter the date the

assignment to the Secretary is filed for record.

The date the assignment is mailed to the recording

authority may be entered. Do not enter the date

the assignment is mailed to an attorney.

Whichever date is entered (recording or mailing)

will be used in evaluating all other related time

requirements and cannot be altered.

Item 11 Date Foreclosure Proceedings (a) Instituted or (b)

Date of Deed In Lieu. (Not applicable.)

Exception: enter when foreclosure was properly

initiated and Local Office requested withdrawal of

the foreclosure action.

Item 12 Holding Mortgagee Number (Payee) (Same as

Conveyance). Enter the complete 10-digit

mortgagee number of the holding mortgagee.

Note: This number determines the payee\'s name and

the address to which the insurance benefits check

and claim payment data are mailed.

Item 13 Servicing Mortgagee Number (Same as Conveyance).

Enter the complete 10-digit mortgagee number of

the servicing mortgagee.

Note: This number determines the name and address

to which all computer generated letters and claim

payment data are mailed. Information will be

mailed only to the holding mortgagee if this item

is not completed.

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Page 3-159/94

4330.4 ASSIGNMENTS

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Item 14 Mortgagee Reference Number (Same as Conveyance).

Enter the loan number (maximum 15 digits) used by

the mortgagee for identifying the case if any.

This number will be printed on the benefits check.

If the mortgagee is FNMA or GNMA, the FNMA or GNMA

loan number must be entered.

Item 15 Original Mortgage Amount (Same as Conveyance).

Enter the original mortgage amount. This figure

should be taken from the mortgage note. If there

has been a recast of the mortgage, make a notation

of the recasting on the reverse side of Part A

under \"Mortgagee\'s Comments\" and make reference to

24 CFR 203.342.

Item 16 Holding Mortgagee EIN (Same as Conveyance). Not

applicable.

Item 17 Unpaid Loan Balance as of Date in Item 8 (Item 11

if coinsurance) (Same as Conveyance). Enter the

unpaid mortgage balance after crediting the last

complete monthly installment paid. This figure is

taken from the mortgagee\'s payment ledger.

Partial payments insufficient to complete a full

monthly installment are to be reported in Part B,

Item 109 as escrow funds.

Item 18 Date of Firm Commitment (Same as Conveyance).

Enter the date of the firm commitment. This date

should be taken from the firm commitment document,

if available. The debenture interest rate is

determined by the firm commitment date or the date

of endorsement, whichever yields the higher rate.

If the case was insured under the Direct

Endorsement Program or the commitment date is not

available, this item must be left blank. Direct

endorsement mortgages may be identified by the

suffix code 700 through 799. Do not enter a date

here if this is a direct endorsement or

coinsurance loan.

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9/94 Page 3-16

ASSIGNMENTS 4330.4

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Item 19 Expiration Date of Extension of Foreclose/Assign.

If a request for an extension of time to assign

the mortgage is requested by the mortgagee and

granted by the local HUD office, enter the

expiration date of that extension. The extension

must be in writing.

Item 20 Date of Notice/Extension to Convey. Enter the

date of the local HUD office approval to assign

the mortgage (Assignment Acceptance Letter).

Item 21 Date of Release of Bankruptcy, If Applicable (Same

as Conveyance). Enter the date the bankruptcy

stay or the local law prohibition was released.

Note: When there is more than one bankruptcy, and

the mortgagee is entitled to a 60 day extension to

begin foreclosure, enter the release date which

applies to the extension.

\* Item 22 Is Property Vacant? Yes or No - Check one to

indicate the occupancy status as of the date in

Item 10.\*

Item 23 If Item 22 is \"No,\" Date of Local HUD Office

Approval - Not applicable.

Item 24 Is Property Conveyed Damaged? Yes or No

(Same as Conveyance) - Check \"yes\" if the damage

\* falls into the categories listed in paragraphs

2-10 and 2-11.\*

If there is no damage or if there is damage to the

property which is not covered by the above

paragraphs, check \"no.\" In the latter case,

specify the type of damage and if any immediate

repairs are needed on the reverse of Part A under

\"Mortgagee\'s comments.\"

Item 25 If Item 24 is \"Yes,\" Date of (a) Local HUD Office

Approval (Pursuant to 203.379(a)(1)) or (b)

Certification (pursuant to 203.379(a)(2)) (Same as

Conveyance) - Enter the date of the HUD approval

letter or the mortgagee certification letter,

whichever is applicable. Attach a copy of the

certification

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Page 3-179/94

4330.4 ASSIGNMENTS

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letter to Part A (copy 1) which is sent to the

local HUD office.

Item 26 Type of Damage (Same as Conveyance) - Check

appropriate box. If more than one type of damage,

check the type that caused the greatest damage.

Do not complete this item if item 24 is checked

\"no.\"

Item 27 Recovery or Estimate of Damage - A figure must be

entered here if item 24 is \"yes\" and 25(a)

applies. If the local HUD office approved

assignment of a mortgage on the property in a

damaged condition, enter the greater of HUD\'s

estimate to repair the damage (obtained from the

local HUD office) or the amount of the insurance

recovery. If the insurance recovery is not

received when this item is completed, estimate the

amount. AN AMOUNT MUST BE ENTERED.

If item 25(b) applies, enter the amount of the

insurance recovery, if any. If insurance recovery

has not been received, estimate the amount.

Item 28 Is Mortgagee Successful Bidder? Yes or No - Not

applicable.

Item 29 Deficiency Judgment Code. Not applicable.

Item 30 Authorized Bid Amount. - Not applicable.

Item 31 Mortgagee Reported Curtailment Date. Not

applicable.

Item 32 Schedule of Tax Information. Enter complete

information on the last amount paid for each type

of tax or assessment. If a tax has not been paid

because it was not available for payment before

assignment, show the exact title of the tax or

assessment to which it is subject. If a tax was

not paid because of a Homestead or similar

exception, identify the tax and enter the

exception type in the \"Amount Paid\" column.

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9/94 Page 3-18

ASSIGNMENTS 4330.4

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Type of Tax/Tax Year. Enter the exact title of

the tax or assessment with installment

information, if applicable (e.g., county tax,

first half or school district tax, second half)

and the year for which the tax assessment was

levied.

Collector\'s Property Identification. Enter the

number used by the taxing authority to identify

the property.

Amount Paid. Enter the amount paid for each type

of tax or assessment (excluding penalties and

interest) and attach a copy of the bill to the

copy of Part A sent to the local HUD office. If

no tax was paid because of an exemption, enter the

type of exemption. If the tax was not paid for

other reasons, enter \"None.\"

Period Covered, From - To. Enter the dates

covered by the tax whether paid or not and without

regard for the due date.

Date Paid. Enter the date of actual payment. All

tax bills available before assignment should be

paid regardless of the due date. Tax bills

received after the date the assignment is filed

for record should be sent to the local HUD office,

identified by the FHA case number and the taxing

authority identification number.

Internal Revenue Service (IRS) Lien. If there is

an IRS tax lien, enter the date and the expiration

of the lien on the reverse side of Part A under

\"Mortgagee\'s Comments.

Notice to Local HUD Office. In addition, the

local HUD office must be promptly advised of the

tax status of the property. After the assignment

has been filed for record, the mortgagee shall

immediately forward all tax bills received, which

are in order for payment and properly identified

by the FHA case number, to the local HUD office,

ATTN: Single Family Loan Management Branch.

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Page 3-199/94

4330.4 ASSIGNMENTS

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Item 33 Mortgagor\'s Name, Social Security Number

and Property Address (Same as

Conveyance). - Enter the name of the

mortgagor in default as it appears on the

ledger record. Enter the property

address as it appears on the security

instrument or the MIC.

Enter the social security numbers of all

mortgagors, if known. At least one

social security number is required. See

Par. 1-14 for additional information.

Item 34 Brief Legal Description of Property (Same

as Conveyance). Enter a brief

description of the property. This

information is found on the mortgage

which should agree with the deed to HUD.

Item 35 Name and Address of Mortgagee (Same as

Conveyance). Enter the name and address

of the mortgagee, including the ZIP code.

Item 36 Name and Address of Mortgagee\'s Servicer

(Same as Conveyance). Enter the name and

address of the mortgagee\'s servicer,

including the ZIP code, if applicable.

Include the name and telephone number of

a contact person who can answer questions

about the claims.

Items 37

and 38 Mortgagee Official Signature, Date and

Title, and Servicer Signature, Date and

Title (Same as Conveyance). The claim

must be signed and dated by an official

of the holding mortgagee if the holding

mortgagee is filing the claim. If a

servicer is filing the claim on behalf of

the mortgagee, an official of the

servicer must sign and date the form.

The application must be complete when

signed and the actual date signed must be

entered by the signing official. The

application will be returned if it is not

signed or if it contains a stamped or

duplicated signature.

Note to

signing Please be sure you have read and

official: understand the certifications on the HUD

Form-27011 before signing and

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5/95 Page 3-20

ASSIGNMENTS 4330.4

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dating. If your system prints the date in items

37 and 38, check to ensure this is the date you

are signing the form. Also check the submission

date in item 6 to ensure it does not reflect an

earlier date. The date in item 6 should be

the same date as item 37 or item 38. \*

Item 39 Amount of Monthly Payment to: (a) FHA insurance,

\(b\) Taxes, (c) Hazard Insurance and (d) Interest

and Principal. Enter the regular monthly payment.

Item 40 If Bankruptcy Filed, Enter Date. Enter the date

of the last bankruptcy action. This is required

if Item 21 is completed.

Item 41 If Conveyed/Assigned Damaged, Date Damage Occurred

(Same as Conveyance). Enter the date the

mortgagee or its agent first became aware of

damage to the property. This date should be

available in the Inspection Reports. If there are

no Inspection Reports because the property was

occupied and the date of damage is not known,

enter an estimated date and indicate in the

Mortgagee Comments section that the date is an

estimate.

Item 42 Date HIP Canceled or Refused, if Applicable (Same

as Conveyance). Enter the date the fire insurance

policy was canceled or refused by the insurer, if

the property was damaged by fire and the mortgagee

executes a certification pursuant to 24 CFR

203.379(a)(2) (a date will be entered in Item

42b).

Item 43 Number of Living Units (Same as Conveyance).

Enter the number of living units in the property.

Item 44 Status of Living Units (Same as Conveyance).

Indicate if the property is vacant or occupied for

each living unit by checking the appropriate box.

If the unit is occupied, enter the occupant\'s

name. If the unit is vacant, enter the date

vacated (as best as can be determined) and the

date the mortgagee secured the property.

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Page 3-219/94

4330.4 ASSIGNMENTS

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Mortgagee\'s Comments, if Any. Use this area to justify unusual

circumstances as well as other information required by the

instructions.

HUD\'s Comments, if any. HUD USE ONLY.

B.Instructions for the Completion of HUD Form 27011, Part B, Fiscal

Data. The following item-by-item instructions are to be used

when completing HUD Form 27011, Part B, for assignment claims.

Prepare this Part after Part D has been completed. The

information entered in this Part is transferred from Part D.

Parts C and E are not applicable to the assignment claim.

Note:Debenture interest is not calculated by mortgagees in

assignment claims.

PART B

FISCAL DATA

Item 100 Mortgagor\'s Name and Property Address (Same as

Conveyance). Enter the mortgagor\'s name and

property address as they appear in Item 33 of Part

A.

Items 101

and 102 FHA Case Number and Section of Act Code (Same as

Conveyance). Enter the FHA Case Number and

Section of the Act Code as they appear in Items 2

and 3 of Part A.

Item 103 Mortgagee\'s Reference Number (Same as Conveyance).

Enter the mortgagee\'s Reference Number as it

appears in Item 14 of Part A.

Item 104 Date Form Prepared. Enter the date Parts A and B

are prepared and submitted to HUD (See Paragraph

3-4).

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9/94 Page 3-22

ASSIGNMENTS 4330.4

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Item 105 Expiration Date to Submit Title Evidence, if

Applicable. Not applicable.

Item 106 Check if Supplemental. Not applicable.

Item 107 Adjustment to Loan Balance (if different from

block 17 on Part A). Not applicable.

Item 108 Sale/Bid Price or Appraisal Value (for Coinsurance

or Nonconveyances) Not applicable.

Item 109 Escrow Balance (as of Date in Block 10, Part A).

Enter amount remaining in escrow account as of the

date the assignment is filed for record. Also

include any funds received on account of the

mortgage which have not been applied to reduce the

indebtedness, e.g., partial payments, buydown

monies, funds held in escrow for on-site repairs

(pursuant to Form HUD-92300, Assurance of

Completion Agreement). DO NOT SEND ESCROW FUNDS

TO HUD.

oSee Item 123 for unapplied Section 235 assistance

payments.

oPayment of expenses for which funds are escrowed

shall be charged to the escrow account in full or

in part until the escrow account balance equals

zero. Expenses paid from available escrow funds

are not to be recorded on Part D.

oDO NOT ENTER A NEGATIVE BALANCE. Advances by the

mortgagee for expense payments normally charged to

the escrow account shall be recorded under Part D,

Items 305 or 311, as appropriate. When the first

occurrence of an expense results in a negative

balance to escrow, enter the negative amount in

Item 305 or 311, whichever is appropriate.

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Page 3-239/94

4330.4 ASSIGNMENTS

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oIllustration of Mortgagee Advances:

Date Date Escrow

Due Paid Interest Principal Escrow Balance

Balance Forward \...\... \...\... \...\... \$151.60

1/01/83 2/03/83 \$73.32 \$21.07 \$70.69 222.29

8/03/83 198.98- 23.31

12/11/83 51.19- (27.88)/1

Item 110 Total Disbursements for Protection and

Preservation from Line 264, Part C. Not

applicable, except for vacant assigned properties.

Item 111 Total Disbursements from line 305, Part D. Enter

the total amount appearing in Part D, Item 305.

Item 112 Attorney/Trustee Fees Paid From Line 306, Part D.

Enter the total amount appearing in Part D, Item

306\.

Item 113 Foreclosure, Acquisition, Conveyance and Other

Costs from Line 307, Part D. Enter the total

amount appearing in Part D, Item 307.

Item 114 Bankruptcy Fee (if applicable) from Line 310, Part

D. Enter the amount of bankruptcy fees appearing

in Part D, Item 310.

Item 115 Rental Income. Enter any income from the rental

of the property between the date of default and

the date the assignment was filed for record.

Item 116 Rental Expense (Same as Conveyance). Enter rental

expenses incurred, if any. If there is no entry

in Item 115, make no entry in this item. This

entry cannot exceed the amount shown in Item 115.

Item 117 Total Taxes on Deed from Line 308, Part D. Not

applicable.

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/1First amount to be entered on Part D, Item 305 or 311, as applicable.

Interest should only be calculated on \$27.88, not the \$51.19.

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9/94 Page 3-24

ASSIGNMENTS 4330.4

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Item 118 Recovery or Damage (if not reported on Part A).

Use Line 119 if Reported on Part A. Not

applicable.

Item 119 Estimate or Recovery from Part A. Not applicable.

Item 120 Special Assessments (DO NOT USE FOR COINSURANCE)

from Line 309, Part D. Not applicable.

Item 121 Mortgage Note Interest. Unpaid mortgage note

interest to the date the assignment is filed for

record will be included in the insurance benefits.

From. Enter the date of the last completely paid

installment (Item 8, Part A). If no payments were

made, enter a date 30 days prior to the due date

of the first scheduled payment (Item 7, Part A).

If the date of the note is less than 30 days prior

to the due date of the first scheduled payment,

enter the date of the note.

To. Enter the date on which the assignment to the

Secretary was filed for record (Item 10, Part A).

Rate. Enter the mortgage interest rate as it

appears on the mortgage note.

Computation method. To obtain the amount of

accrued mortgage interest due, multiply the Daily

Interest Rate Factor by the amount of the unpaid

principal balance. The Daily Interest Rate Factor

is found in the Table in Appendix 8. This result

is then multiplied by the number of days from the

due date of the last completely paid installment

to the date the assignment was filed for record.

To assist in determining the number of days refer

to the Julian Date Calendars provided in Appendix

9\.

Item 122 Mortgage Insurance Premiums (Same as Conveyance).

Enter total from Item 311, Part D.

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Page 3-259/94

4330.4 ASSIGNMENTS

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Item 123 Unapplied Section 235 Assistance Payments (Same as

Conveyance). Enter unapplied assistance payments

in Column A, if applicable.

Item 124 Overpaid Section 235 Assistance Payments (Same as

Conveyance). Enter the amount of any funds

advanced by the mortgagee to repay to HUD

assistance to which the mortgagor was not entitled

and which was not recovered from the mortgagor,

unless the overpayment was the result of error on

the part of the mortgagee. Amount is to be

entered in Column B. Do not calculate debenture

interest for Column C.

Items 125

thru 132 Not applicable. Any amounts appearing on these

lines will be disallowed.

Item 133 Contact: Holding Mortgagee, Name and Telephone

Number; or Contact: Servicing Mortgagee, Name and

Telephone Number (Same as Conveyance). Enter the

name and telephone number of a person in the

holding or servicing mortgagee\'s office who can

answer questions concerning the information

reported on this claim form. Include the Holding

Mortgagee number which you entered in Item 12 of

Part A.

Items 134

and 136 Enter the totals of Columns A - Deductions;

B - Additions; and C - Interest.

Item 137 Net Claim Amount (Columns B - A + C). The net

claim amount calculated by the mortgagee will

differ from the actual amount HUD will pay due to

possible interest curtailment, disallowed

expenses, and additional debenture interest

calculated to the date of claim settlement.

Items 138

and 139 Mortgagee\'s Official Signature. Date and Title

(signature not necessary if signed by a servicer)

and Servicer Signature, Date, and Title. Enter a

signature in at least one of these blocks.

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9/94 Page 3-26

ASSIGNMENTS 4330.4

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C.Instructions for the Completion of HUD Form 27011, Part C,

Support Document.

Part C is not required when filing an assignment claim (except

vacant assigned properties, see instruction in Chapter 2).

D.Instructions for the Completion of HUD Form 27011, Part D,

Support Documentation (Continuation 1).

The general instructions for the preparation of Part D in

conveyance claims are applicable in assignment claims except that

where the general instructions refer to \"the date the deed is

filed for record\" or \"date of conveyance\", the \"date of the

assignment is filed for record\" will be substituted.

Debenture interest on expenditures is paid from the date of

assignment (not from the date of payment expenditure) to the date

of claim settlement, therefore debenture interest should not be

calculated or entered in Part D.

PART D

SUPPORT DOCUMENT (Continuation 1)

Items 300

and 301 FHA Case Number and Section of Act Code (Same as

Conveyance). Enter the FHA case number and

Section of the Act Code as they appear in Items 2

and 3 of Part A.

Item 302 Mortgagee\'s Reference Number (Same as Conveyance).

Enter the mortgagee\'s reference number as it

appears in Item 14 of Part A.

Item 303 Debenture Interest Rate. Not applicable.

Item 304 Date (Same as Conveyance). Enter the date entered

in Part B, Item 104 if all actions taken by the

mortgagee are within the time requirements or the

automatic extensions specified in Paragraph 2-13

or within the extended time requirements (See

Paragraph 1-3). If the mortgagee failed to comply

with a time requirement

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Page 3-279/94

4330.4 ASSIGNMENTS

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(including actions reported in Part A) or its

approved extension, enter the date the action

should have been taken. Debenture interest will

be computed to this date. If there was more than

one failure, enter the earliest date on which a

required action should have been taken (See

paragraph 2-5c).

Item 305 Disbursements for HIP, Taxes, Ground Rents and

Water Rates (which were liens prior to mortgage),

Eviction Costs and Other Disbursements Not Shown

Elsewhere. (Do not include any penalties for late

payment). Itemize all disbursements in these

categories including for each item the date paid,

the period covered, the description, and the

amount paid. Do not include disbursements which

were paid from available escrow funds. No expense

should be incurred after the date the assignment

is filed for record (Item 10), except where the

local HUD office instructs you to take an action.

See explanation for escrow account, Part B, Item

109\.

Item 306 Attorney/Trustee Fee. Enter reasonable attorney\'s

fees paid in connection with preparation of an

assignment of the mortgage to the Secretary. If

attorney\'s fees exceed those normally charged in

the applicable jurisdiction and/or if additional

space is needed to list fees, attach a separate

sheet to this part with an explanation of the

excessive fees and/or the additional fees, and

ensure adequate documentation is maintained in the

claim file. See paragraph 1-10. Total the

\"Amount Paid\" column.

Item 307 Foreclosure and/or Acquisition, Conveyance and

Other Costs. Itemize any other legal costs paid

by the mortgagee, but not entered in Item 306

above. Total the \"Amount Paid\" column. NOTE: A

fee for the title policy should not be claimed on

an assignment.

Item 308 Taxes on Deed. Not applicable.

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ASSIGNMENTS 4330.4

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Item 309 Special Assessments (Do not use for Coinsurance,

see part E). Not applicable.

Item 310 Bankruptcy. Itemize the bankruptcy fees paid.

There must be an entry in item 40. If the

bankruptcy fees exceed those approved by HUD for

routine bankruptcies, see paragraph 1-10.

Item 311 Mortgage Insurance Premiums. Itemize all MIP

disbursements, including the date paid, the period

covered, and the amount paid. Only include the

\"advanced\" MIP disbursements paid after the due

date of the last completely paid installment to

the date the assignment is filed for record.

E.Instructions for the Completion of HUD Form 27011, Part E Support

Document (Continuation 2). Part E is not required when filing an

assignment claim.

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