source:
  type: guide
  id: hud-4000-1-iii-b-responsibility-for-servicing-actions-2
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — b. Responsibility
    for Servicing Actions (04/29/2024)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — b. Responsibility
    for Servicing Actions (04/29/2024).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-b-responsibility-for-servicing-actions-2-full
  canonical_id: hud-4000-1-iii-b-responsibility-for-servicing-actions-2-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — b. Responsibility
    for Servicing Actions (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 — b. Responsibility
      for Servicing Actions (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: 'b. Responsibility for Servicing Actions (04/29/2024) Holders
      are responsible for all servicing actions, including the acts of its Servicers.
      Servicers are responsible for their actions in servicing FHA-insured HECMs,
      including actions taken on behalf, or at the direction, of the Holder. The costs
      associated with servicing must not be imposed on the Borrower or passed along
      to HUD in a claim for mortgage insurance benefits, except for a servicing fee
      if agreed upon by the Borrower at origination. i. Responsibility during Transfers
      of Servicing Rights (A) Definitions The Transferor Servicing Mortgagee refers
      to the Mortgagee that transfers servicing responsibilities. The Transferee Servicing
      Mortgagee refers to the Mortgagee to which the servicing responsibilities have
      been transferred. The Transfer Date refers to the effective date the servicing
      of any HECM is transferred from one servicing Mortgagee to another. (B) Standard
      The Transferor Servicing Mortgagee remains responsible for the servicing of
      an FHA-insured HECM until the Transfer Date. The Transferor Servicing Mortgagee
      must verify that the change of legal rights to service has been accurately reported
      to HUD. On the Transfer Date, the Transferee Servicing Mortgagee assumes responsibility
      for: III. SERVICING AND LOSS MITIGATION B. Title II Insured Housing Programs
      Reverse Mortgages 1. Servicing of FHA-Insured HECMs Handbook 4000.1 1444 Last
      Revised: 11/26/2025 • all servicing actions, including ensuring resolution of
      any servicing errors that were, and remain, the responsibility of the Transferor
      Servicing Mortgagee; • obtaining the complete HECM file, including origination
      and servicing records; and • ensuring that the original Note and Mortgage are
      preserved. (C) Required Documentation The Transferor Servicing Mortgagee must
      report the Transfer Date and update the mortgage record in Home Equity Reverse
      Mortgage Information Technology (HERMIT) within 15 Days of the Transfer Date.
      ii. Responsibility for Servicing when the Mortgage is Sold (A) Definitions A
      Mortgage Sale refers to a transaction in which a Holder sells the Mortgage to
      another FHA-approved Mortgagee. The Purchasing Mortgage Holder or Purchasing
      Mortgagee is the Mortgagee that purchases the Mortgage and thereby succeeds
      to all rights and obligations of the Selling Mortgage Holder under the contract
      for mortgage insurance. The Selling Mortgage Holder or Selling Mortgagee is
      the Mortgagee that sells the Mortgage and thereby relinquishes all rights and
      obligations under the contract for mortgage insurance. (B) Standard The Selling
      Mortgagee remains responsible for Mortgage Insurance Premiums (MIP) until notice
      of the sale is received by HUD via HERMIT. As of the effective date of the sale,
      the Purchasing Mortgagee becomes responsible for outstanding MIP obligations,
      regardless of the date of accrual, and must confirm that the details of the
      mortgage sale have been reported accurately. (C) Required Documentation The
      Selling Mortgagee must report the date of the sale of the Mortgage as the “Transfer
      Date” and update the mortgage record in HERMIT within 15 Days of the date of
      the sale. III. SERVICING AND LOSS MITIGATION B. Title II Insured Housing Programs
      Reverse Mortgages 1. Servicing of FHA-Insured HECMs Handbook 4000.1 1445 Last
      Revised: 11/26/2025 iii. Registration with Mortgage Electronic Registration
      System, Inc. (A) Definition The Mortgage Electronic Registration System (MERS)
      is an electronic tracking system identified as the nominee for a Holder of a
      Mortgage. (B) Standard Mortgagees may voluntarily register FHA-insured HECMs
      with MERS.'
  judgment: false
