source:
  type: guide
  id: hud-4000-1-iii-j-post-endorsement-mortgage-amendments
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — j. Post-endorsement
    Mortgage Amendments (12/30/2025)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — j. Post-endorsement
    Mortgage Amendments (12/30/2025).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-j-post-endorsement-mortgage-amendments-full
  canonical_id: hud-4000-1-iii-j-post-endorsement-mortgage-amendments-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — j. Post-endorsement
    Mortgage Amendments (12/30/2025)
  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 — j. Post-endorsement
      Mortgage Amendments (12/30/2025)
    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: 'j. Post-endorsement Mortgage Amendments (12/30/2025) i. Definition
      A Post-endorsement Mortgage Amendment is a change to the mortgage instruments,
      the nature of the obligation, or the security after the Mortgage has been insured.
      III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward
      Mortgages 1. Servicing of FHA-Insured Mortgages Handbook 4000.1 1172 Last Revised:
      11/26/2025 ii. Modifying a Performing Mortgage (A) Modification without HUD
      Approval The Mortgagee may modify a performing Mortgage without HUD approval
      when: • the modification is only for a reduction of the interest rate; • the
      mortgage term is decreased and the Principal and Interest (P&I) will be increased
      $100 or less per month; or • the mortgage term is decreased and the Mortgage
      is more than three years old. (B) Modification Requiring HUD Approval The Mortgagee
      must request and receive approval from HUD prior to modifying a performing Mortgage
      when the mortgage term is decreased and: • the P&I will increase over $100 per
      month; or • the Mortgage is three years old or less. The Mortgagee may modify
      the Mortgage to decrease the mortgage term by increasing the Mortgage Payment
      so long as all of the following conditions are met: • The Mortgagee has received
      HUD approval. • The Mortgage is current and the Borrower’s payment history is
      satisfactory to the Mortgagee. • The Mortgagee has determined that the higher
      Mortgage Payment is within the Borrowers’ ability to pay under the underwriting
      standards in Origination through Post-closing/Endorsement. • The modification
      agreement contains a clause permitting reversion to original mortgage terms
      if reversion can salvage a Delinquent account and prevent foreclosure. • The
      modification agreement contains a certification by the Borrowers stating that
      they are aware of the positive and negative aspects of the modification and
      that they have voluntarily agreed to the increased payments. (C) Principal Amount
      of Modified Performing Mortgage The new principal amount of the modified Mortgage
      is the total unpaid amount due and payable under the original Mortgage. The
      Mortgagee may not include the following in the new principal amount: • any revision
      of periodic MIP payments; and • any legal or administrative costs attributable
      to the modification (these costs may be collected separately from the Borrower).
      (D) Recordation of Lien The Mortgagee must perform the legal steps required
      to accomplish the modification and must ensure that the Mortgage remains a valid
      first lien against the Property. III. SERVICING AND LOSS MITIGATION A. Title
      II Insured Housing Programs Forward Mortgages 1. Servicing of FHA-Insured Mortgages
      Handbook 4000.1 1173 Last Revised: 11/26/2025 (E) Fee for Modification of Performing
      Mortgage The Mortgagee may charge the Borrower a reasonable and customary fee
      for processing and recording a modification of a performing Mortgage when not
      modified under HUD’s Loss Mitigation Program. The Mortgagee may not file an
      incentive claim for modifying a performing Mortgage. (F) Reporting to HUD The
      Mortgagee must report mortgage characteristics for all modifications through
      FHAC or FHA Catalyst. (G) Required Documentation When modifying a performing
      Mortgage, the Mortgagee must retain the following in their Servicing Files:
      • a mortgage modification document, in the form of: o an amended original Note,
      with all changes initialed by all parties; or o a modification agreement executed
      by all parties; • documentation evidencing that criteria for modifying the Mortgage
      with or without HUD approval, as appropriate, were met; • documentation showing
      calculations of the modified principal amount and the new monthly payment amount;
      and • proof that any unpaid escrow added to the new principal amount was credited
      to the Borrower’s escrow account. iii. Partial Releases, Easements, or Modification
      of Security (A) Partial Releases from Condemnation Not Requiring HUD Approval
      (1) Standard The Mortgagee may execute a partial release of security without
      HUD approval if the partial release results from condemnation and all of the
      following conditions are met: • the portion of the Property being conveyed does
      not exceed 10 percent of the area of the mortgaged Property; • there is no damage
      to existing Structures or other improvements; • there is no unrepaired damage
      to sewer, water, or paving; • the Mortgagee has applied all of the payment received
      as compensation for the taking of the Property to reduce the unpaid principal
      balance of the Mortgage; and • the government action requiring conveyance occurs
      after insurance of the Mortgage. III. SERVICING AND LOSS MITIGATION A. Title
      II Insured Housing Programs Forward Mortgages 1. Servicing of FHA-Insured Mortgages
      Handbook 4000.1 1174 Last Revised: 11/26/2025 (2) Required Documentation (a)
      Claim File If the Mortgagee files a claim for mortgage insurance benefits, the
      Mortgagee must submit a certification that the requirements for partial releases
      of security as a result of condemnation have been met and retain a copy of the
      certification in the Claim File. (b) Reporting to HUD The Mortgagee must notify
      the Appropriate Homeownership Center (HOC) of the release by letter within 30
      Days of the Mortgagee’s signing of the release. (B) Partial Releases, Easements,
      or Modification of Security Requiring HUD Approval (1) Definition Partial Release
      or Modification of Security is the conveyance, assignment, transfer, pledge,
      or encumbrance of any part of the mortgaged Property or any interest in the
      mortgaged Property other than a Partial Release from Condemnation Not Requiring
      HUD Approval or other title exceptions covered under the general waiver. The
      partial release or modification of security may be a: • partial release; • condemnation;
      • order of taking; • subordination or consent to Easement; • lot line dispute/adjustment/land
      exchange; • subdivision consent; • aviation easement; or • consent to change
      in covenants and restrictions. (2) Request Process The Mortgagee must obtain
      HUD approval for any partial release or modification of security. The Mortgagee
      must send the following to HUD for the Property: • a request containing the
      following information: o whether or not the Mortgage is in good standing; o
      the amount of the outstanding principal balance; o the due date of the last
      unpaid installment; o if the Mortgage is Delinquent, the number of Delinquent
      payments; o a list of unpaid special assessments, if any, and the total amount
      payable; o a complete legal description of the Property to be released or modified;
      III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward
      Mortgages 1. Servicing of FHA-Insured Mortgages Handbook 4000.1 1175 Last Revised:
      11/26/2025 o the Borrower’s reasons for requesting that the Mortgagee make the
      partial release or modification of security, including how the land to be released
      or modified will be used; o the monetary consideration, if any, to be received
      by the Borrower; o the amount of a prepayment, if any, to the mortgage principal;
      o any restrictions to be imposed on the land to be released or modified; and
      o the case number of the mortgaged Property; • a survey or sketch of the Property
      showing: o the dimensions of the portion to be released or modified; o the location
      of existing and proposed improvements; and o the relation of the Property to
      surrounding properties; • plans and specifications, including Cost Estimates
      of any alterations proposed for the remaining Property after the release or
      modification; and • a valid FHA appraisal that reflects: o the value before
      the partial release or modification of security; and o the value of the remaining
      Property after the partial release or modification of security. (3) HUD Review
      HUD will process the request for the partial release or modification of security
      and notify the Mortgagee of the approval or denial in writing. (4) Required
      Documentation The Mortgagee must retain a copy of HUD’s approval or denial in
      the Servicing File. (C) Fees The Mortgagee may charge the Borrower reasonable
      and customary fees, up to the amounts listed in Appendix 3.0, involved in processing
      Partial Releases from Condemnation Not Requiring HUD Approval or a Partial Release,
      Easements, or Modification of Security Requiring HUD Approval. iv. Change of
      Location of Dwelling or Improvements (A) Relocation Requiring HUD Approval (1)
      Request to HUD Except in the emergency situations described in Emergency Relocation
      Not Requiring HUD Approval, the Mortgagee must obtain HUD approval prior to
      relocation. The Mortgagee must submit the following to the FHA Resource Center
      at answers@hud.gov: • the Mortgagee’s request for a change in improvement location;
      and III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs
      Forward Mortgages 1. Servicing of FHA-Insured Mortgages Handbook 4000.1 1176
      Last Revised: 11/26/2025 • supporting documentation, including architectural
      exhibits, a copy of the permit, and a description of materials. HUD will analyze
      the request and notify the Mortgagee of the approval or denial of the request.
      (2) Relocation Requirements The Mortgagee must ensure that relocations are performed
      as follows: • the Mortgagee obtains a valid first lien on the new lot; • the
      lien of the insured Mortgage has been extended to cover the new lot and the
      old lot has or has not been released from the lien, as appropriate; • all damages
      to the Structure before, during, or after the relocation are repaired without
      cost to HUD; and • the new lot is in an area known to be reasonably free from
      natural hazards or, if in an SFHA, the community participates in the National
      Flood Insurance Program (NFIP) and the Property will be insured against floods.
      (3) Required Documentation The Mortgagee must retain a copy of HUD’s approval
      or denial in the Servicing File. After the move has been completed and the appropriate
      substitute documents have been recorded, the Mortgagee must forward to HUD any
      documentation regarding the changes in the nature of the lien and retain copies
      in the Servicing File. (B) Emergency Relocation Not Requiring HUD Approval (1)
      Permanent Relocation (a) Standard The Mortgagee may consent to the relocation
      of existing improvements in emergency situations, where immediate action must
      be taken to preserve the safety of the occupants and/or the undamaged condition
      of the existing improvements, without HUD approval. (b) Notification to HUD
      of Completed Permanent Relocation The Mortgagee must notify HUD within 30 Days
      of the completed permanent relocation and submit a supplementary case binder
      containing supporting documentation for the change in improvement location.
      The Mortgagee must include the following in its notification of the completion
      of the permanent relocation: • the FHA case number of the mortgaged Property;
      III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward
      Mortgages 1. Servicing of FHA-Insured Mortgages Handbook 4000.1 1177 Last Revised:
      11/26/2025 • the address and legal description of the lot of the improvement’s
      previous location and the address and legal description of the new permanent
      location; • a statement that HUD regulatory requirements have been met; • a
      statement that the original Note is in full force and effect; and • the outstanding
      balance of the insured Mortgage, and, if Delinquent, the number of payments,
      the dollar amount of the delinquency, and an explanation of how the delinquency
      is expected to be cured. (c) Required Documentation The Mortgagee must retain
      in the Servicing File a copy of its notification of the completion of the permanent
      relocation. (2) Temporary Relocation (a) Standard When a temporary move becomes
      necessary, the Mortgagee may consult HUD before the move, for written assurance
      that the mortgage insurance will not be affected adversely during the move.
      All damages to the Structure before, during, or after the relocation have been
      or will be repaired without cost to HUD. (b) Notification to HUD of Completed
      Temporary Relocation Within 30 Days of the completion of the temporary relocation,
      the Mortgagee must submit written notification to HUD, advising that the temporary
      relocation has been completed. This notification must include the following:
      • the FHA case number of the mortgaged Property; • the address and legal description
      of the lot of the improvement’s previous location and the address and legal
      description of the new temporary lot; and • a statement that: o the move to
      the temporary lot has been accomplished; and o any damage caused by the temporary
      move has been or will be repaired at no cost to HUD. (c) Required Documentation
      The Mortgagee must retain in the Servicing File a copy of the notification to
      HUD of completed temporary relocation. III. SERVICING AND LOSS MITIGATION A.
      Title II Insured Housing Programs Forward Mortgages 1. Servicing of FHA-Insured
      Mortgages Handbook 4000.1 1178 Last Revised: 11/26/2025 v. Adding Borrowers
      to a Mortgage Any Borrower added to a Mortgage must have a valid SSN or EIN
      or meet the eligibility requirement exception regarding social security numbers.'
  judgment: false
