HUD Partial Claim Mortgage Pay-Off Update

Title insurance claims related to U.S. Department of Housing and Urban Development (HUD) subordinate mortgages, which secure partial claims on Federal Housing Administration (FHA) mortgages, are a nationwide concern. These claims typically arise when such mortgages are not paid and satisfied at the time of sale, leading to the issuance of title insurance policies that do not include an exception for the outstanding mortgage. This issue was previously addressed in “Unsatisfied HUD Subordinate Mortgages Trigger Insurance Claims,” 68 Fund Concept 51, (Jul. 2019). Read the article