source:
  type: guide
  id: hud-4000-1-iii-3-programs-and-products-mortgagee-optional-election-assignment
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — 3. Programs
    and Products - Mortgagee Optional Election Assignment (04/29/2024)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — 3. Programs
    and Products - Mortgagee Optional Election Assignment (04/29/2024).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-3-programs-and-products-mortgagee-optional-election-assignment-full
  canonical_id: hud-4000-1-iii-3-programs-and-products-mortgagee-optional-election-assignment-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — 3. Programs
    and Products - Mortgagee Optional Election Assignment (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 — 3. Programs
      and Products - Mortgagee Optional Election Assignment (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: '3. Programs and Products - Mortgagee Optional Election Assignment
      (04/29/2024) Handbook 4000.1 1520 Last Revised: 11/26/2025 (B) Required Documentation
      The Mortgagee must retain in its Claim File any approved extensions from HUD
      related to a foreclosure moratorium. Where foreclosure was initiated prior to
      the effective date of the moratorium, the Mortgagee must retain in its Claim
      File documentation of any delay to the Reasonable Diligence Time Frame related
      to a foreclosure moratorium. (C) Hazard or Flood Insurance Settlement The Mortgagee
      must take no action to initiate or complete foreclosure proceedings after expiration
      of a disaster-related foreclosure moratorium, if such action will jeopardize
      the full recovery of a hazard or flood insurance settlement. iii. Monitoring
      of Repairs to Substantially Damaged Homes (A) Definition A building is considered
      to be “Substantially Damaged,” as defined in the National Flood Insurance Program
      (NFIP) regulations, when “damage of any origin is sustained by a structure whereby
      the cost of restoring the structure to its before damaged condition would equal
      or exceed 50 percent of the market value of the structure before the damage
      occurred.” (B) Standard The Mortgagee must take appropriate actions to ensure
      that repairs to Substantially Damaged Properties comply with the federal building
      elevation standards, including those established by FEMA. The Mortgagee must
      ensure compliance with any higher applicable building elevation standard adopted
      by the state or local government.'
  judgment: false
