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This rule amends HUD's regulations covering the contract rights and obligations of mortgagees participating in FHA multifamily mortgage insurance programs to address reimbursement to FHA of excess claim proceeds. When a mortgagee finances mortgages through the issuance and sale of bonds or through bond anticipation notes the mortgagee uses the FHA insurance claim funds to pay off the remaining bond debts. At times, the amount paid by the FHA insurance claim is greater than the remaining bond debts. This rule requires mortgagees to return to FHA the excess bond funds that remain after FHA's payment is used to satisfy the bonds. HUD would require similar payments of excess bond funds on obligations of public housing agencies and, thus, the rule provides consistency in the administration of HUD bond financing programs.