source:
  type: guide
  id: hud-4000-1-iii-m-disclosures
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — m. Disclosures
    (03/31/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — m. Disclosures
    (03/31/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-m-disclosures-full
  canonical_id: hud-4000-1-iii-m-disclosures-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — m. Disclosures
    (03/31/2022)
  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 III — m. Disclosures
      (03/31/2022)
    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: 'm. Disclosures (03/31/2022) i. Statement of Escrow Account At
      the Borrower’s request, the Mortgagee must promptly furnish a statement of the
      escrow account in a clear and understandable form, with sufficient information
      to permit the Borrower to reconcile the account. ii. Payoff Disclosure (A) Definition
      A Payoff Disclosure is a disclosure accompanying the payoff statement. For Mortgages
      closed before January 21, 2015, Mortgagees must include a description of the
      procedures for prepayment of a Mortgage with the payoff statement. (B) Standard
      When notified of the Borrower’s intent to prepay a Mortgage, the Mortgagee must
      send to the Borrower directly the Payoff Disclosure and copy of the payoff statement.
      (C) Required Documentation The Mortgagee must retain a copy of the Payoff Disclosure
      in the Servicing File. iii. Annual Prepayment Disclosure Statements (A) Definition
      An Annual Prepayment Disclosure Statement is a statement of the amount outstanding
      on the Mortgage and, for Mortgages closed before January 21, 2015, the requirements
      that the Borrower must fulfill upon prepayment to prevent accrual of interest
      after the date of prepayment. (B) Standard The Mortgagee must send the Borrower
      a written Annual Prepayment Disclosure Statement on an annual basis. (C) Required
      Documentation The Mortgagee must retain a copy of the Annual Prepayment Disclosure
      Statement in the Servicing File. III. SERVICING AND LOSS MITIGATION A. Title
      II Insured Housing Programs Forward Mortgages 1. Servicing of FHA-Insured Mortgages
      Handbook 4000.1 1184 Last Revised: 11/26/2025 iv. Statement for Income Tax Purposes
      (A) Definition The Statement for Income Tax Purposes is an Internal Revenue
      Service (IRS) Form 1098, Mortgage Interest Statement, or equivalent that provides
      documentation of taxes and interest paid by the Borrower during the preceding
      calendar year. (B) Standard The Mortgagee must provide the Borrower with a Statement
      for Income Tax Purposes by January 30 of each year. (C) Required Documentation
      The Mortgagee must retain a copy of each annual Statement for Income Tax Purposes
      in the Servicing File.'
  judgment: false
