source:
  type: regulation
  id: hud-4000-1-iii-a-2-h
  authority: "HUD Handbook 4000.1 III.A.2.h — Loss Mitigation Program"
  description: 'HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.h.

    See obligation entries for operative requirements and verbatim

    primary-source citations.

    '
obligations:
- id: hud-4000-1-iii-a-2-h-borrower-eligibility-verification
  canonical_id: hud-4000-1-iii-a-2-h-borrower-eligibility-verification
  section: "HUD Handbook 4000.1 III.A.2.h.iii(A) — Eligibility to Participate in HUD Programs"
  description: 'Before offering any FHA Loss Mitigation Option, [LENDER] must verify

    that the Borrowers are eligible to participate in HUD''s Loss

    Mitigation Program (no other FHA-insured real estate beyond the

    stated exceptions; no FHA-claim-paid prior loan within the past three

    years; no debarment/suspension/LDP for Loan Mod, Partial Claim,

    Combination, or Payment Supplement; no unresolved delinquent Federal

    Debt for Partial Claim / Combination / Payment Supplement).

    '
  type: do
  audit_question: For every FHA-insured Mortgage in Default for which [LENDER] offered a Loss Mitigation Option, can [LENDER] evidence Borrower-eligibility verification under III.A.2.h.iii(A)?
  workflow_phase: servicing
  owner_role: loss_mitigation_specialist
  secondary_owner_role: default_servicing_analyst
  cadence: per-loss-mit-evaluation
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - hud-handbook-4000-1
  - fha
  - servicing
  - loss-mitigation
  - borrower-eligibility
  - promoted
  primary_source:
    tier: 1
    authority: "HUD Handbook 4000.1 III.A.2.h.iii(A) — Eligibility to Participate in HUD Programs"
    source_class: hud-handbook-4000-1
    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: "The Mortgagee must verify that the Borrowers are eligible to participate in HUD’s "
    drafter_attestation: Copied verbatim from HUD Handbook 4000.1 snapshot 8c03836f77f317e1 (III.A.2.h.iii(A)) at 2026-05-23.
  promoted_at: '2026-05-23T00:46:59+00:00'
  promoted_from: hud-4000-1-iii-a-2-h-roundb-v1.yaml
  program_review: Does the program account for the loss-mit eligibility conditions before any option is offered — no other FHA-insured real estate beyond stated exceptions, no FHA-claim-paid prior loan within 3 years, no debarment/suspension/LDP for the relevant option, and no unresolved delinquent Federal Debt for Partial Claim/Combination/Payment Supplement?
  file_review: Spot-check loss-mit files; confirm documented Borrower-eligibility verification under III.A.2.h.iii(A) before the option was offered.
  judgment: false
  feeds:
  - hud-4000-1-iii-a-2-h-90-day-evaluation
- id: hud-4000-1-iii-a-2-h-90-day-evaluation
  canonical_id: hud-4000-1-iii-a-2-h-90-day-evaluation
  section: "HUD Handbook 4000.1 III.A.2.h.iii(B) — 90-Day Review"
  description: 'For each FHA-insured forward Mortgage in Default, [LENDER] must

    complete an evaluation of the Defaulted Mortgage for appropriate Loss

    Mitigation Options before four monthly installments are due and

    unpaid, and send a written Notice to Borrower with the determination

    of eligibility.

    '
  type: do
  audit_question: For every FHA-insured forward Mortgage in Default, can [LENDER] evidence completion of the loss-mit evaluation before four monthly installments became due and unpaid, and delivery of the written Notice to Borrower with the determination of eligibility?
  workflow_phase: servicing
  owner_role: loss_mitigation_specialist
  secondary_owner_role: default_servicing_analyst
  cadence: per-defaulted-loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - hud-handbook-4000-1
  - fha
  - servicing
  - loss-mitigation
  - 90-day-review
  - promoted
  primary_source:
    tier: 1
    authority: "HUD Handbook 4000.1 III.A.2.h.iii(B) — 90-Day Review"
    source_class: hud-handbook-4000-1
    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: 'A Mortgagee is required to complete an evaluation of a Defaulted Mortgage for '
    drafter_attestation: Copied verbatim from HUD Handbook 4000.1 snapshot 8c03836f77f317e1 (III.A.2.h.iii(B)) at 2026-05-23.
  promoted_at: '2026-05-23T00:46:59+00:00'
  promoted_from: hud-4000-1-iii-a-2-h-roundb-v1.yaml
  program_review: Do the P&Ps ensure each defaulted forward Mortgage is evaluated for loss-mit options BEFORE four monthly installments are due and unpaid, with a written Notice to Borrower stating the eligibility determination?
  file_review: Pull defaulted forward-Mortgage files; confirm the loss-mit evaluation completed before the 4th unpaid installment and the written Notice to Borrower with the determination.
  judgment: false
- id: hud-4000-1-iii-a-2-h-no-borrower-cash-contribution
  canonical_id: hud-4000-1-iii-a-2-h-no-borrower-cash-contribution
  section: "HUD Handbook 4000.1 III.A.2.h.iv(B) — Evaluation of Borrower for Loss Mitigation Assistance, Standard"
  description: '[LENDER] must not condition the use of a Loss Mitigation Option on

    the receipt of a Borrower''s cash contribution or a Borrower''s payment

    of fees or charges.

    '
  type: dont
  audit_question: For every FHA Loss Mitigation Option offered, can [LENDER] evidence that the offer was not conditioned on a Borrower cash contribution or on Borrower payment of fees or charges?
  workflow_phase: servicing
  owner_role: loss_mitigation_specialist
  secondary_owner_role: compliance_officer
  cadence: per-loss-mit-offer
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - hud-handbook-4000-1
  - fha
  - servicing
  - loss-mitigation
  - no-upfront-cash
  - promoted
  primary_source:
    tier: 1
    authority: "HUD Handbook 4000.1 III.A.2.h.iv(B) — Standard"
    source_class: hud-handbook-4000-1
    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: 'The Mortgagee must not condition the use of a Loss Mitigation Option on the receipt '
    drafter_attestation: Copied verbatim from HUD Handbook 4000.1 snapshot 8c03836f77f317e1 (III.A.2.h.iv(B)) at 2026-05-23.
  promoted_at: '2026-05-23T00:46:59+00:00'
  promoted_from: hud-4000-1-iii-a-2-h-roundb-v1.yaml
  program_review: Do the P&Ps prohibit conditioning any Loss Mitigation Option on a Borrower cash contribution or payment of fees/charges?
  file_review: Pull loss-mit offers; confirm none was conditioned on a Borrower cash contribution or fee/charge payment.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-23T00:46:59+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\hud-4000-1-iii-a-2-h-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
