source:
  type: regulation
  id: hud-4000-1-iii-a-1
  authority: HUD Handbook 4000.1 Part III.A.1 — Servicing of FHA-Insured Mortgages (Forward)
  description: 'HUD Handbook 4000.1 Part III.A.1 establishes the foundational FHA

    forward-mortgage servicing duties: only FHA-approved Mortgagees may

    service; Mortgage Holders must ensure servicing per FHA + applicable

    laws; CFPB/RESPA/TILA + Ginnie Mae MBS compliance; mortgage-contract-

    terms-prevail-when-more-stringent rule; subservicing costs may NOT

    be imposed on Borrower or passed to HUD via insurance claim;

    nondiscrimination duties under Fair Housing Act, FCRA, and ECOA;

    Transferor/Transferee Servicing Mortgagee responsibilities and

    Transfer Date definition. Fills HUD 4000.1 Part III.A.1 chapter gap.

    '
obligations:
- id: hud-4000-1-iii-a-1-full
  canonical_id: hud-4000-1-iii-a-1-full
  section: HUD Handbook 4000.1 Part III.A.1
  description: "Servicing And Loss Mitigation: III. \nSERVICING AND LOSS MITIGATION \nA. TITLE II INSURED\
    \ HOUSING PROGRAMS FORWARD MORTGAGES \nThis section provides the standards and procedures applicable\
    \ to the servicing of all Single \nFamily (one- to four-units) Mortgages insured under Title II of\
    \ the National Housing Act, except \nfor Home Equity…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - hud
  - 4000-1
  - curated
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 III.A.1 — Servicing of FHA-Insured Mortgages
    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:e1c2dc1c75ddb0ee32fe5c2fb7c9bb19f1c93b48a3e26e6d63dc6e7f37c92ec0
    paragraph_quote: "III. \nSERVICING AND LOSS MITIGATION \nA. TITLE II INSURED HOUSING PROGRAMS FORWARD\
      \ MORTGAGES \nThis section provides the standards and procedures applicable to the servicing of\
      \ all Single \nFamily (one- to four-units) Mortgages insured under Title II of the National Housing\
      \ Act, except \nfor Home Equity Conversion Mortgages (HECM). The Mortgagee must fully comply with\
      \ all of \nthe following standards and procedures when servicing a Mortgage insured by the Federal\
      \ \nHousing Administration (FHA). \nOnly FHA-approved Mortgagees may service FHA-insured Mortgages.\
      \ Mortgagees may service \nMortgages they hold or that are held by other FHA-approved Mortgagees.\
      \ \na. Servicing Roles and Responsibilities (10/01/2025) \nThe Mortgage Holder is the entity who\
      \ holds title to the FHA-insured Mortgage and has \nthe right to enforce the mortgage agreement.\
      \ \nThe Mortgage Servicer (Servicer) is the entity responsible for performing servicing \nactions\
      \ on FHA-insured Mortgages on its behalf or on behalf of or at the direction of \nMortgage Holders\
      \ must ensure all FHA-insured Mortgages are serviced by a Servicer in \naccordance with FHA requirements\
      \ and all applicable laws. \nServicers must service all FHA-insured Mortgages in accordance with\
      \ FHA requirements \nand all applicable laws. \n(A) Laws and Requirements Applicable to Mortgage\
      \ Servicing [Text was deleted \nin this section.] \nMortgagees must comply with all laws, rules,\
      \ and requirements applicable to \nmortgage servicing, including full compliance with the applicable\
      \ requirements under \nthe purview of the Consumer Financial Protection Bureau (CFPB), including\
      \ the Real \nEstate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), \nand,\
      \ if applicable, Ginnie Mae’s mortgage-backed securities requirements. \n(B) Contract Terms \nWhere\
      \ mortgage contract terms are more stringent or restrictive than those provided \nfor in applicable\
      \ law, the Mortgagee must comply with the mortgage contract terms. \n\n \nMortgagees must comply\
      \ with all antidiscrimination laws, rules, and requirements \napplicable to servicing performing\
      \ FHA-insured Mortgages and FHA-insured \nMortgages in Default, including full compliance with the\
      \ applicable requirements of: \n• the Fair Credit Reporting Act (FCRA), 15 U.S.C. §§ 1681a‒1681x;\
      \ and \nBorrower’s income in a uniform manner that does not discriminate because of the \nrace,\
      \ color, religion, sex, age, national origin, familial status, disability, marital status, \nreceipt\
      \ of public assistance, because an applicant has in good faith exercised any right \nunder the Consumer\
      \ Credit Protection Act, or location of the Property. \nb. Responsibility for Servicing Actions\
      \ (10/01/2025) \nMortgage Holders are responsible for all servicing actions, including the acts\
      \ of its Servicers. \nServicers are responsible for their actions in servicing FHA-insured Mortgages,\
      \ Partial Claim \nSubordinate Mortgages, and Payment Supplement Subordinate Mortgages. The Servicer\
      \ is \nalso responsible for actions taken at the direction, or on behalf, of the Mortgage Holder.\
      \ \nThe costs associated with subservicing may not be imposed on the Borrower or passed along \n\
      to HUD in a claim for mortgage insurance benefits. \ni. Responsibility during Transfers of Servicing\
      \ Rights \nThe Transferor Servicing Mortgagee is the Mortgage Servicer that transfers servicing\
      \ \nThe Transferee Servicing Mortgagee is the Mortgage Servicer to which the servicing \nresponsibilities\
      \ have been transferred. \nThe Transfer Date is the date on which the Borrower’s Mortgage Payment\
      \ is first due \nto the Transferee Servicing Mortgagee. \nThe Transferor Servicing Mortgagee remains\
      \ responsible for the servicing of an \nFHA-insured Mortgage, any Payment Supplement(s), and any\
      \ Partial Claim(s) before \nthe Partial Claim documents have been recorded and delivered to HUD\
      \ until the \nTransfer Date. The Transferor Servicing Mortgagee: \n• must verify that the change\
      \ of legal rights to service has been reported \naccurately; and"
    drafter_attestation: Verbatim section from snapshot 3bf33edadcf6461d; boundary human-curated + substring-verified
      (2026-07-23).
  judgment: false
