source:
  type: guide
  id: hud-4000-1-ii-d-procedures-for-endorsement-2
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — d. Procedures
    for Endorsement (08/19/2024)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — d. Procedures
    for Endorsement (08/19/2024).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-d-procedures-for-endorsement-2-full
  canonical_id: hud-4000-1-ii-d-procedures-for-endorsement-2-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — d. Procedures
    for Endorsement (08/19/2024)
  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 II — d. Procedures
      for Endorsement (08/19/2024)
    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: 'd. Procedures for Endorsement (08/19/2024) The Mortgagee must
      remit the IMIP before endorsement of the HECM. To initiate the insurance endorsement
      process, the originating or servicing Mortgagee must complete loan setup in
      HERMIT within 15 Days of closing to initiate HUD’s collection of IMIP. Mortgagees
      may access HERMIT for the IMIP that must be remitted. Once IMIP is remitted,
      the Mortgagee must complete the Insurance Application function in FHAC and compile
      the uniform case binder with all of the necessary documents. Instructions for
      specific requirements for data format and delivery to FHAC are found in the
      FHA Connection Guide. Either the sponsoring Mortgagee, principal, or authorized
      agent must: • submit evidence of assignment of the case for endorsement in the
      name of the originating Mortgagee; and • transfer the case number to another
      Mortgagee prior to closing, complete the Lender Transfer screen in FHAC, and
      complete the assignment of the HECM after endorsement to a new holding or servicing
      Mortgagee via FHAC. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title
      II Insured Housing Programs Reverse Mortgages 7. Post-closing and Endorsement
      Handbook 4000.1 718 Last Revised: 11/26/2025 i. Late Initial Mortgage Insurance
      Premium Payments (A) IMIP Late Charge and Interest If the IMIP is paid more
      than 20 Days after the Closing Date, the Mortgagee will be assessed a one-time
      Late Charge of 4 percent of the amount owed, plus interest. The interest rate
      is determined in accordance with the requirements set forth in the U.S. Department
      of the Treasury’s Financial Manual in effect when the initial payment is received.
      The Mortgagee must pay the IMIP Late Charge and interest before FHA will endorse
      the HECM for insurance. The Mortgagee must not add the amount of the Late Charge
      and interest to the Borrower’s outstanding loan balance. The Mortgagee may submit
      a request to appeal a paid Late Charge or interest payment. For specific information
      on how to submit an appeal, see the HERMIT User Guide. (B) Refund and Credit
      of Initial Mortgage Insurance Premium The Mortgagee must use HERMIT to submit
      a request for an IMIP refund, stating the amount of refund requested, the reason
      for the request, and to whom the refund is to be paid. See the HERMIT User Guide
      for refund instructions. The IMIP may be refunded only under the following circumstances:
      • the Mortgagee remitted too much money; • the HECM was never endorsed and is
      not eligible for endorsement; • an appeal of Late Charges or interest, or both,
      was approved; or • an erroneous Closing Date was entered and later corrected.
      ii. Assembly of Case Binder for Electronic Submission The Mortgagee must prepare
      and submit a uniform case binder through FHA Catalyst: Case Binder Module in
      accordance with the FHA Catalyst: Case Binder Module User Guide. The Mortgagee
      must ensure that all case binders are complete, meet FHA specifications, contain
      all required documents, and are submitted electronically according to the document
      order designated below. All documents that are submitted electronically to FHA
      are considered complete and accurate copies of the original documents. All appraisals
      must be submitted through FHA’s legacy EAD portal or FHA Catalyst: EAD Module
      prior to endorsement. Complete instructions and data delivery format requirements
      for each appraisal form are found in the Appraisal Report and Data Delivery
      Guide. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured
      Housing Programs Reverse Mortgages 7. Post-closing and Endorsement Handbook
      4000.1 719 Last Revised: 11/26/2025 HECM REQUIRED DOCUMENTS FOR ENDORSEMENT
      Appraisal and Property Related Documents Designation of Assignment Insurance
      Option Conditional Commitment Direct Endorsement Statement of Appraised Value
      HUD-92800.5B Appraisal Update and/or Completion Report (Part A) Fannie Mae Form
      1004D Compliance Inspection Report or the Appraisal Update and/or Completion
      Report (Part B) Note: This form is used in conjunction with the Repair Rider
      and certifies that required repairs have been satisfactorily completed. HUD-92051
      Fannie Mae Form 1004D/Freddie Mac Form 442 Repair Cost Estimate, if applicable
      Note: The cost estimate is used in conjunction with the Repair Rider and establishment
      of the Repair Set-Aside. Life of Loan Flood Certification Evidence of Flood
      Insurance Evidence of Hazard Insurance Title Insurance Commitment or other acceptable
      evidence of title insurance (in an amount not less than the MCA) Borrower certification
      stating no child under six years of age resides or will reside in the home (for
      Properties built before 1978 with lead-based paint hazards) Borrower’s Contract
      with Respect to Hotel and Transient Use of Property (required on 2-, 3-, or
      4-unit Properties) HUD-92561 Exhibits for New Construction Builder’s Certification
      of Plans, Specifications, and Site HUD-92541 Warranty of Completion of Construction
      HUD-92544 One of the following: • Certificate of Occupancy or equivalent and
      Building Permit; or • three FHA inspection; or • Final Inspection Local Health
      Authority Approval for Individual Water and Sewer Systems Subterranean Termite
      Protection Builder’s Guarantee HUD-NPMA-99A New Construction Subterranean Termite
      Service Record HUD-NPMA-99B Wood Destroying Insect Inspection Report or state
      mandated report NPMA-33 Waivers – Property specific issued by HOC, if applicable
      LOMR, LOMA, or FEMA NFIP Elevation Certificate FEMA Form FF-206- FY-22-152 Manufactured
      Housing Engineer’s Certification for Manufactured Housing Foundation II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse
      Mortgages 7. Post-closing and Endorsement Handbook 4000.1 720 Last Revised:
      11/26/2025 HECM REQUIRED DOCUMENTS FOR ENDORSEMENT LOMR, LOMA, or FEMA NFIP
      Elevation Certificate FEMA Form FF-206- FY-22-152 Condominiums FHA Condominium
      Loan Level/Single-Unit Approval Questionnaire HUD-9991 HO-6 (Walls-In) Certificate
      of Insurance or Insurance Policy Condominium Rider, if applicable Specialized
      Eligibility Documents Presidentially-Declared Major Disaster Area Initial and/or
      Final Damage Inspection Report Presidentially-Declared Major Disaster Area Interior
      and Exterior Photographs Presidentially-Declared Major Disaster Area Repair
      Escrow Statement, if applicable HECM for Purchase Transactions Sales Contract
      Amendatory Clause Real Estate Certification Other contract addenda or short
      sale approval Chain of Title and Title Evidence demonstrating Good and Marketable
      Title Underwriting Documentation Request for Late Endorsement and Certification
      stating the HECM is in good standing and Property Charges are current, if applicable.
      Certificate of HECM Counseling certificate(s) (received from a HUD-approved
      housing counseling agency and signed and dated by the Borrower and HECM counselor)
      HUD-92902 HECM Financial Assessment Worksheet, or equivalent, signed by the
      underwriter, and any supporting documentation relevant to the underwriting decision
      Borrower and Non-Borrowing Spouse Certifications Non-Borrowing Spouse and Non-Borrowing
      Owner Acknowledgement and Certification Evidence of Marital Status Note: This
      may include marriage certificate. First Note First Security Instrument (Mortgage
      or Deed of Trust) and all applicable riders Second Note (optional for fixed
      rate HECMs) (Original mailed directly to HUD’s Servicing Contractor) II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse
      Mortgages 7. Post-closing and Endorsement Handbook 4000.1 721 Last Revised:
      11/26/2025 HECM REQUIRED DOCUMENTS FOR ENDORSEMENT Second Security Instrument
      (Mortgage or Deed of Trust) and all applicable riders (Original mailed directly
      to HUD’s Servicing Contractor) HUD-1 Settlement Statement and HUD-1 Addendum
      with Closing Certifications Most recent payoff demand for mortgage debt paid
      off using HECM proceeds Borrower authorization to apply unused escrow funds
      Notice to Borrower Loan Agreement and the following related exhibits: • schedule
      of closing costs and liens; • payment plan; and • Repair Rider, if applicable.
      (Original mailed directly to HUD’s Servicing Contractor) Initial and Final Residential
      Loan Application for Reverse Mortgages (RLARM) Fannie Mae Form 1009 Initial
      and Final HUD Addendum to Uniform Residential Loan Application (all pages) HUD-92900-A
      HECM Program Description disclosure Documentation supporting compliance with
      seasoning requirements for existing non-HECM liens Documentation supporting
      payoff of HELOC using HECM proceeds Legal documentation evidencing release of
      the Borrower’s financial obligation to satisfy the existing HECM Borrower Authorization
      for Verification Borrower Authorization for Use of Information Protected under
      the Privacy Act Cited Extenuating Circumstances and/or Compensating Factors
      Mortgagee’s decision to require a Fully Funded or Partially Funded LESA Calculation
      of the Projected Life Expectancy Property Charges Evidence of the calculation
      of the amount of the LESA Evidence of CAIVRS authorization code and SAM/LDP
      check Good Faith Estimate, including initial and revised GFEs, if applicable
      Evidence of calculations for: • Principal Limit; and • monthly payment or line
      of credit. A screen print is acceptable. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      B. Title II Insured Housing Programs Reverse Mortgages 7. Post-closing and Endorsement
      Handbook 4000.1 722 Last Revised: 11/26/2025 HECM REQUIRED DOCUMENTS FOR ENDORSEMENT
      Power of Attorney Waiver of three-day right of recession, if applicable Court
      order appointing a conservator or guardian Trust Agreement or the Declaration
      of Trust, if applicable Documents granting the borrower a Life Estate, if applicable
      Mortgage Riders & Allonges Subordinate Lien Agreement Title Evidence demonstrating
      Good and Marketable Title HECM-to-HECM Refinance Documentation Home Equity Conversion
      Mortgage (HECM) Anti-Churning Disclosure HUD-92901 Payoff Statement(s) for all
      liens to be satisfied with mortgage proceeds All supporting calculations for
      blocks 1 and 2 on the Anti- Churning Disclosure Borrower Identification Documentation
      Evidence of the Borrower’s age and Eligible NBS’s age, if applicable Evidence
      of the Borrower’s SSN and Eligible NBS’s SSN, if applicable Credit and Capacity
      Documentation Credit report(s) Evidence of CAIVRS authorization code and SAM/LDP
      check Verification of Mortgage or rent Verification of Property Charges Tax
      deferral waiver or exemption Credit-related documentation and explanations Source
      of Funds Verification Verification of non-gift source of funds Verification
      of gift source of funds Income and Employment Documentation Verification of
      Income Verification of Assets Residual Income Analysis Worksheet HECM for Purchase
      Documentation Evidence that Borrower’s recent debts were not borrowed to meet
      the cash investment requirement iii. Case Binder Submission – Direct Endorsement
      The case binder must be received by FHA no later than 60 Days after the Disbursement
      Date. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing
      Programs Reverse Mortgages 7. Post-closing and Endorsement Handbook 4000.1 723
      Last Revised: 11/26/2025 (A) Late Submission If the case binder is submitted
      more than 60 Days after the Disbursement Date, the Mortgagee must submit a late
      endorsement request, certifying that: • at the time of certification, all payments
      to the Borrowers have been made in accordance with time frames specified by
      the payment option; • the MIP, Late Charge, and interest due have been remitted;
      • the Borrower is current in paying their Property Charges, i.e., taxes, Ground
      Rent, Flood and Hazard Insurance premiums, and special assessments; and • the
      Mortgagee or its agent did not provide funds to bring and/or keep the Property
      Charges current or to bring about the appearance that the Borrower has complied
      with the obligations of the HECM. FHA will not insure a HECM that does not comply
      with FHA requirements when submitted for endorsement. Each late endorsement
      request must: • list the FHA case number; • list the Borrower’s name; • be dated
      and signed by the Mortgagee’s representative; and • be printed on company letterhead
      with the Mortgagee’s address and telephone number. (B) Assignee Mortgagee [Text
      was deleted in this section.] The assignee Mortgagee of a HECM may submit the
      HECM for endorsement in its name or the name of the originating Mortgagee. The
      Purchasing Mortgagee may pay any required IMIP, Late Charge, and interest. (C)
      After Receipt of a Notice of Return Notice of Return (NOR) refers to a notification
      to the Mortgagee specifying the reason a Mortgage is not currently eligible
      for endorsement. If FHA issues a NOR, the Mortgagee may request reconsideration
      for insurance endorsement. All requests for reconsideration must be received
      by FHA within the 60-Day endorsement submission period or within 30 Days of
      the issuance of the NOR, whichever is longer. If the request for reconsideration
      is submitted after this time period, the Mortgagee must follow the guidelines
      for late submission. Mortgagees must resubmit additional documentation for reconsideration
      and resolution of the NOR. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      B. Title II Insured Housing Programs Reverse Mortgages 7. Post-closing and Endorsement
      Handbook 4000.1 724 Last Revised: 11/26/2025 iv. Ineligible for Endorsement
      (A) Notice of Return If the HECM is ineligible for insurance endorsement, FHAC
      issues an electronic NOR, which states the reasons for non-endorsement and any
      corrective actions that the Mortgagee must take. If the HECM is permanently
      rejected for insurance endorsement, the Mortgagee must notify the Borrower that
      they do not have an FHA-insured HECM and of the circumstances that made the
      HECM ineligible for FHA insurance. (B) Additional Requirements for Permanently
      Rejected HECMs The Mortgagee must request a cancelation of the case number from
      the FHA Resource Center at answers@hud.gov to obtain a refund of MIP paid by
      or on behalf of the Borrower. v. Mortgagee with Conditional Direct Endorsement
      Approval (Test Case) For Mortgagees who receive a HECM Direct Endorsement Program
      Test Case phase approval letter from FHA must follow the Test Case Phase Case
      Binder Submission process.'
  judgment: false
