source:
  type: guide
  id: hud-4000-1-iii-f-payment-administration
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — f. Payment
    Administration (04/29/2024)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — f. Payment
    Administration (04/29/2024).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-f-payment-administration-full
  canonical_id: hud-4000-1-iii-f-payment-administration-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — f. Payment
    Administration (04/29/2024)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — f. Payment
      Administration (04/29/2024)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'f. Payment Administration (04/29/2024) i. Receipt of Payments
      (A) Definition Payments are any funds remitted to the Mortgagee to reduce the
      balance owed under the HECM. (B) Standard The Mortgagee must either use a Trust
      Clearing Account or special custodial account to hold all payments on the insured
      Mortgage. The Mortgagee’s Trust Clearing Account may be used for collections
      received on all types of Mortgages. If a Trust Clearing Account is not used,
      the Mortgagee must immediately transfer payments into a special custodial account.
      ii. Application of Payments Mortgagees must apply Borrower payments in the following
      order: • to MIPs due, if any; • to servicing fees, if any; • to interest on
      the Mortgage; and • to the principal of the Mortgage. iii. Trustee’s Fees for
      Satisfactions If specifically provided for in the security instrument, the Mortgagee
      may charge the Borrower the amount of the trustee’s fee, plus any reasonable
      and customary fees for payment, or for the execution of a satisfaction, release,
      or trustee’s deed when the debt is paid in full. iv. Recording Fees for Satisfactions
      The Mortgagee may charge the Borrower a reasonable and customary fee for recording
      satisfactions in states where recordation is not the responsibility of the Mortgagee.
      III. SERVICING AND LOSS MITIGATION B. Title II Insured Housing Programs Reverse
      Mortgages 1. Servicing of FHA-Insured HECMs Handbook 4000.1 1451 Last Revised:
      11/26/2025'
  judgment: false
