source:
  type: guide
  id: hud-4000-1-v-f-ineligible-participants
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part V — f. Ineligible
    Participants (05/09/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part V — f. Ineligible
    Participants (05/09/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-v-f-ineligible-participants-full
  canonical_id: hud-4000-1-v-f-ineligible-participants-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part V — f. Ineligible
    Participants (05/09/2022)
  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 V — f. Ineligible
      Participants (05/09/2022)
    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. Ineligible Participants (05/09/2022) i. Origination and Underwriting
      Reviews (A) Standard The Mortgagee must verify that none of the participants
      in the mortgage transactions reviewed were debarred, suspended, under an LDP
      for the FHA program and jurisdiction, or otherwise ineligible to participate
      in an FHA transaction. This includes participants in an assumption transaction.
      Participants in a mortgage transaction may include, but are not limited to,
      the: • seller (excluding the seller of a Principal Residence) • listing and
      selling real estate agent • loan originator V. QUALITY CONTROL, OVERSIGHT, AND
      COMPLIANCE A. Quality Control of Lenders and Mortgagees 3. Loan Level Quality
      Control Program Requirements Handbook 4000.1 1715 Last Revised: 11/26/2025 •
      Dealer • retailer involved in a Manufactured Home Loan • loan processor • underwriter
      • Appraiser • 203(k) Consultant • Closing Agent • title company The Mortgagee
      must verify participant eligibility using the SAM Excluded Parties List, the
      LDP List, and NMLS, as applicable. (B) Required Documentation The Mortgagee
      must maintain documentation that supports each participant’s eligibility. ii.
      Servicing Reviews (A) Standard The Mortgagee must verify that none of the participants
      in the servicing transactions reviewed were debarred, suspended, under an LDP
      for the FHA program and jurisdiction, or otherwise ineligible to participate
      in an FHA transaction. This includes participants in a loss mitigation transaction.
      Participants in a servicing transaction may include, but are not limited to:
      • Borrowers applying for a Loss Mitigation Option • underwriters • real estate
      brokers • Closing Agent • title company • employees of the Mortgagee, or Affiliates
      participating in HUD programs for or on behalf of the Mortgagee, who have influence
      or control over the evaluation, approval, or outcome of the servicing loss mitigation,
      or claims transaction. The Mortgagee must verify participant eligibility using
      the SAM Excluded Parties List and the LDP List, as applicable. (B) Required
      Documentation The Mortgagee must maintain copies of each participant’s eligibility
      verification printouts. V. QUALITY CONTROL, OVERSIGHT, AND COMPLIANCE A. Quality
      Control of Lenders and Mortgagees 4. Data Integrity Handbook 4000.1 1716 Last
      Revised: 11/26/2025 4. Data Integrity'
  judgment: false
