source:
  type: regulation
  id: hud-4000-1-ii-a-1-b
  authority: "HUD Handbook 4000.1 II.A.1.b — General Mortgage Insurance Eligibility"
  description: 'HUD Handbook 4000.1 Part II.A.1.b (General Mortgage Insurance

    Eligibility) for Title II Insured Housing Programs Forward Mortgages.

    Covers borrower eligibility (SSN, age, residency), occupancy

    requirements, LDP/SAM excluded-party screening, property location,

    flood-zone eligibility, and identity-of-interest screening.

    '
obligations:
- id: hud-4000-1-ii-a-1-b-borrower-eligibility
  canonical_id: hud-4000-1-ii-a-1-b-borrower-eligibility
  section: "HUD Handbook 4000.1 II.A.1.b.ii — Borrower Eligibility"
  description: 'In order for [LENDER] to originate an FHA-insured Mortgage, all

    Borrowers must meet the FHA Borrower eligibility requirements set

    forth in HUD Handbook 4000.1 II.A.1.b (including SSN, age, residency

    status, and citizenship/lawful-residence requirements).

    '
  type: do
  audit_question: For every FHA-insured Mortgage [LENDER] originates, can [LENDER] evidence that each Borrower met the FHA Borrower eligibility requirements (SSN, age, residency status, citizenship/lawful-residence) at application?
  workflow_phase: origination
  owner_role: loan_officer
  secondary_owner_role: underwriter
  cadence: per-loan
  consequence: Originating an FHA-insured Mortgage for an ineligible Borrower is grounds for HUD finding and loss of insurability.
  tags:
  - round-d
  - regulator-direct
  - fha
  - hud-4000-1
  - borrower-eligibility
  - promoted
  primary_source:
    tier: 1
    authority: "HUD Handbook 4000.1 II.A.1.b.ii — Borrower Eligibility"
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
    snapshot_id: 3bf33edadcf6461d
    fetched_at: '2026-05-25T14:10:11Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: In order to obtain FHA-insured financing, all Borrowers must meet the eligibility
    drafter_attestation: 'Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1

      Update 17, II.A.1.b.ii).

      '
  promoted_at: '2026-05-25T17:33:48+00:00'
  promoted_from: hud-4000-1-ii-a-1-b-roundd-v1.yaml
  program_review: Do the P&Ps ensure every Borrower is screened for FHA eligibility (SSN, age, residency status, citizenship/lawful-residence) at application?
  file_review: Pull originated files; confirm each Borrower met the SSN/age/residency/citizenship eligibility requirements at application.
  judgment: false
- id: hud-4000-1-ii-a-1-b-ssn-evidence
  canonical_id: hud-4000-1-ii-a-1-b-ssn-evidence
  section: "HUD Handbook 4000.1 II.A.1.b.ii — Social Security Number"
  description: 'Each Borrower must provide evidence of their valid Social Security

    Number (SSN) to [LENDER]. [LENDER] must document the SSN evidence

    in the mortgage file for every FHA-insured Mortgage.

    '
  type: do
  audit_question: For every Borrower on every FHA-insured Mortgage, can [LENDER] produce documentary evidence (in the mortgage file) of the Borrower's valid SSN?
  workflow_phase: origination
  owner_role: loan_officer
  secondary_owner_role: compliance_officer
  cadence: per-loan
  consequence: Missing or invalid SSN evidence is a HUD finding; failure to verify SSN against SSA records may also trigger fraud-pattern review.
  tags:
  - round-d
  - regulator-direct
  - fha
  - hud-4000-1
  - borrower-eligibility
  - ssn
  - promoted
  primary_source:
    tier: 1
    authority: "HUD Handbook 4000.1 II.A.1.b.ii — Social Security Number"
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
    snapshot_id: 3bf33edadcf6461d
    fetched_at: '2026-05-25T14:10:11Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: Each Borrower must provide evidence of their valid SSN to the Mortgagee.
    drafter_attestation: 'Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1

      Update 17, II.A.1.b.ii).

      '
  promoted_at: '2026-05-25T17:33:48+00:00'
  promoted_from: hud-4000-1-ii-a-1-b-roundd-v1.yaml
  program_review: Do the P&Ps ensure each Borrower's valid-SSN evidence is obtained and documented in the mortgage file?
  file_review: Pull files; confirm documentary SSN evidence is present for each Borrower.
  judgment: false
- id: hud-4000-1-ii-a-1-b-intent-to-occupy
  canonical_id: hud-4000-1-ii-a-1-b-intent-to-occupy
  section: "HUD Handbook 4000.1 II.A.1.b.ii — Owner-Occupancy / Intent to Occupy"
  description: '[LENDER] must obtain the Borrower''s intent to occupy the subject

    Property as the Borrower''s Principal Residence (consistent with

    FHA''s owner-occupant program requirements) and document that intent

    in the mortgage file.

    '
  type: do
  audit_question: For every FHA-insured Mortgage, can [LENDER] produce documented evidence of the Borrower's intent to occupy the subject Property as the Borrower's Principal Residence?
  workflow_phase: origination
  owner_role: loan_officer
  secondary_owner_role: underwriter
  cadence: per-loan
  consequence: Failure to obtain intent-to-occupy evidence is a HUD finding; occupancy fraud is the single largest origination-fraud category.
  tags:
  - round-d
  - regulator-direct
  - fha
  - hud-4000-1
  - occupancy
  - origination
  - promoted
  primary_source:
    tier: 1
    authority: "HUD Handbook 4000.1 II.A.1.b.ii — Owner-Occupancy"
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
    snapshot_id: 3bf33edadcf6461d
    fetched_at: '2026-05-25T14:10:11Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: "The Mortgagee must obtain the Borrower’s intent to occupy the subject"
    drafter_attestation: 'Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1

      Update 17, II.A.1.b.ii). Apostrophe is U+2019 (curly).

      '
  promoted_at: '2026-05-25T17:33:48+00:00'
  promoted_from: hud-4000-1-ii-a-1-b-roundd-v1.yaml
  program_review: Do the P&Ps ensure the Borrower's intent to occupy the subject Property as a Principal Residence is obtained and documented?
  file_review: Pull files; confirm documented intent-to-occupy as Principal Residence.
  judgment: false
- id: hud-4000-1-ii-a-1-b-60-day-occupancy
  canonical_id: hud-4000-1-ii-a-1-b-60-day-occupancy
  section: "HUD Handbook 4000.1 II.A.1.b.ii — Required Occupancy"
  description: 'For every FHA-insured Mortgage [LENDER] originates, at least one

    Borrower must occupy the subject Property as the Borrower''s

    Principal Residence within 60 Days of signing the security

    instrument.

    '
  type: do
  audit_question: For every FHA-insured Mortgage, can [LENDER] evidence (at underwriting and post-closing) that at least one Borrower was committed to occupy the Property as a Principal Residence within 60 Days of signing the security instrument?
  workflow_phase: origination
  owner_role: underwriter
  secondary_owner_role: post_closer
  cadence: per-loan
  consequence: Closing on an FHA-insured Mortgage without a borrower committed to 60-day occupancy is a per-se HUD eligibility violation.
  tags:
  - round-d
  - regulator-direct
  - fha
  - hud-4000-1
  - occupancy
  - 60-day
  - promoted
  primary_source:
    tier: 1
    authority: "HUD Handbook 4000.1 II.A.1.b.ii — Required Occupancy"
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
    snapshot_id: 3bf33edadcf6461d
    fetched_at: '2026-05-25T14:10:11Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: At least one Borrower must occupy the Property within 60 Days of signing the
    drafter_attestation: 'Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1

      Update 17, II.A.1.b.ii).

      '
  promoted_at: '2026-05-25T17:33:48+00:00'
  promoted_from: hud-4000-1-ii-a-1-b-roundd-v1.yaml
  program_review: Do the P&Ps ensure at least one Borrower is committed to occupy the Property as a Principal Residence within 60 Days of signing the security instrument?
  file_review: Pull files; confirm at least one Borrower's 60-Day occupancy commitment at underwriting (and any post-closing occupancy check the program runs).
  judgment: false
- id: hud-4000-1-ii-a-1-b-ldp-sam-screen
  canonical_id: hud-4000-1-ii-a-1-b-ldp-sam-screen
  section: "HUD Handbook 4000.1 II.A.1.b — Excluded-Parties Screening (LDP / SAM)"
  description: '[LENDER] must check the HUD Limited Denial of Participation (LDP)

    List and the System for Award Management (SAM) excluded-parties

    list and follow the appropriate procedures defined by HUD for every

    transaction participant on an FHA-insured Mortgage.

    '
  type: do
  audit_question: For every FHA-insured Mortgage, can [LENDER] evidence (in the mortgage file) that the HUD LDP list and SAM were checked for every transaction participant, with appropriate follow-up if any participant was excluded?
  workflow_phase: origination
  owner_role: compliance_officer
  secondary_owner_role: underwriter
  cadence: per-loan
  consequence: Closing with an excluded transaction participant is a HUD finding and may bar FHA insurability.
  tags:
  - round-d
  - regulator-direct
  - fha
  - hud-4000-1
  - excluded-parties
  - ldp
  - sam
  - promoted
  primary_source:
    tier: 1
    authority: "HUD Handbook 4000.1 II.A.1.b — Excluded Parties"
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
    snapshot_id: 3bf33edadcf6461d
    fetched_at: '2026-05-25T14:10:11Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: The Mortgagee must check the HUD LDP List and SAM and follow
    drafter_attestation: 'Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1

      Update 17, II.A.1.b).

      '
  promoted_at: '2026-05-25T17:33:49+00:00'
  promoted_from: hud-4000-1-ii-a-1-b-roundd-v1.yaml
  program_review: Do the P&Ps ensure the HUD LDP List and SAM are checked for every transaction participant on every FHA loan, with the appropriate HUD-defined follow-up if any participant is excluded?
  file_review: Pull files; confirm LDP and SAM checks for each transaction participant, and appropriate follow-up where a participant was excluded.
  judgment: false
- id: hud-4000-1-ii-a-1-b-flood-insurance-sfha
  canonical_id: hud-4000-1-ii-a-1-b-flood-insurance-sfha
  section: "HUD Handbook 4000.1 II.A.1.b — Flood Insurance for SFHA Properties"
  description: 'For FHA-insured Mortgages secured by Properties located within a

    Special Flood Hazard Area (SFHA), [LENDER] must ensure that Flood

    Insurance is in place meeting FHA''s requirements.

    '
  type: do
  audit_question: For every FHA-insured Mortgage secured by a Property in a Special Flood Hazard Area, can [LENDER] evidence Flood Insurance coverage meeting FHA's requirements at closing and on a continuing basis?
  workflow_phase: origination
  owner_role: underwriter
  secondary_owner_role: servicer_compliance_officer
  cadence: continuous
  consequence: Insuring a Property in an SFHA without compliant Flood Insurance is a HUD finding and triggers federal flood-insurance-compliance liability under 42 USC 4012a.
  tags:
  - round-d
  - regulator-direct
  - fha
  - hud-4000-1
  - flood-insurance
  - sfha
  - promoted
  primary_source:
    tier: 1
    authority: "HUD Handbook 4000.1 II.A.1.b — Flood Insurance Requirements"
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
    snapshot_id: 3bf33edadcf6461d
    fetched_at: '2026-05-25T14:10:11Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: For Properties located within an SFHA, Flood Insurance must be
    drafter_attestation: 'Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1

      Update 17, II.A.1.b).

      '
  promoted_at: '2026-05-25T17:33:49+00:00'
  promoted_from: hud-4000-1-ii-a-1-b-roundd-v1.yaml
  program_review: Does the program account for the SFHA condition — ensuring Flood Insurance meeting FHA requirements is in place at closing and maintained for Properties in a Special Flood Hazard Area?
  file_review: Spot-check files where the Property is in an SFHA; confirm Flood Insurance meeting FHA requirements at closing and on a continuing basis.
  judgment: false
- id: hud-4000-1-ii-a-1-b-property-us-location
  canonical_id: hud-4000-1-ii-a-1-b-property-us-location
  section: "HUD Handbook 4000.1 II.A.1.b — Property Location"
  description: 'The Property securing an FHA-insured Mortgage must be located within

    the United States, Puerto Rico, Guam, the Virgin Islands, the

    Commonwealth of the Northern Mariana Islands, or American Samoa.

    [LENDER] must verify the property location is within an eligible

    jurisdiction.

    '
  type: do
  audit_question: For every FHA-insured Mortgage, can [LENDER] evidence that the subject Property is located within an FHA-eligible U.S. jurisdiction (U.S., Puerto Rico, Guam, USVI, CNMI, or American Samoa)?
  workflow_phase: origination
  owner_role: underwriter
  secondary_owner_role: loan_officer
  cadence: per-loan
  consequence: Insuring a property outside an FHA-eligible jurisdiction is a per-se HUD violation.
  tags:
  - round-d
  - regulator-direct
  - fha
  - hud-4000-1
  - property-eligibility
  - promoted
  primary_source:
    tier: 1
    authority: "HUD Handbook 4000.1 II.A.1.b — Property Location"
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
    snapshot_id: 3bf33edadcf6461d
    fetched_at: '2026-05-25T14:10:11Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: The Property must be located within the U.S., Puerto Rico, Guam, the Virgin Islands,
    drafter_attestation: 'Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1

      Update 17, II.A.1.b).

      '
  promoted_at: '2026-05-25T17:33:49+00:00'
  promoted_from: hud-4000-1-ii-a-1-b-roundd-v1.yaml
  program_review: Do the P&Ps ensure the subject Property is verified to be within an FHA-eligible jurisdiction (U.S., Puerto Rico, Guam, USVI, CNMI, or American Samoa)?
  file_review: Pull files; confirm the Property location is within an eligible FHA jurisdiction.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-25T17:33:49+00:00'
  candidate_path: obligations\_remediation\round-d-investor-guides\hud-4000-1-ii-a-1-b-roundd-v1.yaml
  candidates_promoted: 7
  candidates_skipped_existing: 0
