source:
  type: guide
  id: hud-4000-1-ii-b-mortgagee-pre-endorsement-review-requirements-2
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Mortgagee
    Pre-endorsement Review Requirements (08/19/2024)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Mortgagee
    Pre-endorsement Review Requirements (08/19/2024).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-b-mortgagee-pre-endorsement-review-requirements-2-full
  canonical_id: hud-4000-1-ii-b-mortgagee-pre-endorsement-review-requirements-2-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Mortgagee
    Pre-endorsement Review Requirements (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 — b. Mortgagee
      Pre-endorsement Review Requirements (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: 'b. Mortgagee Pre-endorsement Review Requirements (08/19/2024)
      When conducting the pre-endorsement review, the Mortgagee must review and verify
      data entered in FHA Connection is accurate and correct based on documentation
      contained in the case binder. The Mortgagee must also review and verify the
      following items, as applicable. All documents must be legible. i. HECM Late
      Submission Letter The Mortgagee must confirm that the Late Submission Letter
      is completed, if necessary. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      B. Title II Insured Housing Programs Reverse Mortgages 7. Post-closing and Endorsement
      Handbook 4000.1 710 Last Revised: 11/26/2025 ii. Financial Assessment Worksheet
      or Equivalent The Mortgagee must confirm that the form is completed, containing
      all information for HECM approval and LESA requirements. The form must be signed
      and dated by the underwriter. iii. Borrower and Non-Borrowing Spouse Certifications
      The Mortgagee must confirm any required certification is completed in accordance
      with FHA requirements. iv. Evidence of Age The Mortgagee must confirm evidence
      of the Borrower’s age and the NBS’s age, if applicable, is included. v. Evidence
      of the Social Security Number The Mortgagee must confirm that the HECM file
      contains evidence of the Borrower’s and any Eligible NBS’s SSN. vi. HECM Counseling
      Certificate The Mortgagee must confirm that the HECM file contains the Certificate
      of HECM Counseling, received from a Participating Agency and signed by the HECM
      counselor and all individuals required to complete HECM counseling. The Mortgagee
      must confirm that the HECM file contains evidence of lack of Borrower, NBS,
      and Non-Borrowing Owner competency if HECM counseling is not provided directly
      to any HECM Borrower, NBS, or Non-Borrowing Owner. vii. Note (Including HECM
      Second Note, if Applicable) The Mortgagee must confirm that the Note is the
      Authoritative Copy, the Borrower name on the Note matches that on the RLARM,
      and the required language from the Model Note is present. The Mortgagee must
      also confirm that: • the Note has been executed; • the maximum principal amount,
      if required by state law, is not higher than the amount referenced on the security
      instrument; and • all applicable allonges, agreements, and riders are properly
      executed. The Mortgagee must confirm that the HECM file contains a copy of the
      HECM First Note and HECM Second Note, if applicable. The Mortgagee must ensure
      that the HECM Second Note, if applicable, is mailed directly to HUD’s HECM servicing
      contractor. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured
      Housing Programs Reverse Mortgages 7. Post-closing and Endorsement Handbook
      4000.1 711 Last Revised: 11/26/2025 viii. HECM Security Instrument The Mortgagee
      must confirm that the security instrument: • is the Authoritative Copy; • has
      been executed (along with all riders indicated on the last page of the security
      instrument); • includes, as applicable, a mortgage amount that is at least equal
      to 150 percent of the MCA; • lists the same property address as the RLARM (Fannie
      Mae Form 1009); and • lists the FHA case number. After closing, the Mortgagee
      must record the first Mortgage. ix. HECM Second Security Instrument, if Applicable
      After closing, the Mortgagee must record the second Mortgage. The second Mortgage
      is not subject to any state or local recording taxes or stamp taxes because
      the second Mortgage is a Mortgage to the federal government. Recording fees,
      which are a charge for a service, may be imposed by the local recording office.
      The Mortgagee must confirm that the HECM file contains a copy of the second
      security instrument, if applicable. The Mortgagee must ensure that the recorded
      HECM second security instrument is mailed directly to HUD’s HECM servicing contractor.
      x. Settlement Statement and Settlement Certification Mortgagees are responsible
      for the accuracy of the Settlement Statement or similar legal document. The
      Mortgagee must confirm that the Settlement Statement or similar legal document
      and the Settlement Certification, if applicable, are complete and signed by
      the Borrower, seller, as applicable, and settlement agent. If the HUD-1 Settlement
      Statement or similar legal document is provided separately, the Mortgagee must
      obtain from the Closing Agent a copy of the final statement provided to the
      seller to keep in the case binder. The Settlement Statement or similar legal
      document must indicate that all existing mortgage liens have been fully satisfied
      or are subordinate to the first and second HECM liens. The Settlement Certification
      must contain certification language. Mortgagees may not change or alter the
      certification language; exact wording must be used. A Notice of Rejection will
      be issued when the certification is missing from the FHA case binder. II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse
      Mortgages 7. Post-closing and Endorsement Handbook 4000.1 712 Last Revised:
      11/26/2025 xi. Payoff Demands The Mortgagee must confirm the most recent payoff
      demand for any mortgage debt paid off using HECM proceeds is included. xii.
      Notice to Borrower The Mortgagee must confirm the notice is included. xiii.
      Loan Agreement and Related Exhibits The Mortgagee must confirm the original
      loan agreement and the following related exhibits are accurate: • schedule of
      closing costs and liens; • payment plan; and • Repair Rider, if applicable.
      The Mortgagee must confirm that the HECM file contains a copy of the loan agreement
      and related exhibits. The Mortgagee must ensure the original HECM loan agreement
      and exhibits are mailed directly to HUD’s HECM servicing contractor. xiv. Final
      Residential Loan Application for Reverse Mortgages The Mortgagee must confirm
      the RLARM is signed and dated by the Mortgagee and all Borrowers and/or, if
      applicable, attorney-in-fact. If the final RLARM is not signed by the Mortgagee,
      the initial application signed by the Mortgagee is acceptable. xv. Form HUD-92900-A,
      HUD Addendum to Uniform Residential Loan Application The Mortgagee must confirm
      that form HUD-92900-A, HUD Addendum to Uniform Residential Loan Application,
      is completed as instructed by FHA and RLARM. xvi. Seasoning Documentation The
      Mortgagee must confirm documentation supporting compliance with seasoning requirements
      for existing non-HECM liens is included, if applicable. xvii. Financial Assessment
      Documentation The Mortgagee must confirm that documentation verifying and supporting
      the following is included: • credit history, including a credit report; • evidence
      of CAIVRS authorization code; • evidence that the SAM Excluded Parties List
      and HUD’s Limited Denial of Participation List was checked; II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse
      Mortgages 7. Post-closing and Endorsement Handbook 4000.1 713 Last Revised:
      11/26/2025 • income verification; • asset verification; • property charge verification;
      • Residual Income analysis worksheet; • tax deferral waiver or exemption; •
      HECM for Purchase transactions must include documentation to indicate the Borrower’s
      recent debts were not borrowed to meet the monetary investment requirement;
      • cited Extenuating Circumstances and/or Compensating Factors; • Mortgagee’s
      decision to require a Fully Funded or Partially Funded LESA; and • calculation
      of the amount of any LESA. Mortgagees must ensure that the Borrower certifies
      the accuracy and completeness of the financial information. xviii. Good Faith
      Estimate The Mortgagee must confirm the initial and any revised GFEs are included.
      xix. Credit Report(s) The Mortgagee must confirm that the HECM file contains
      a credit report for each Borrower. If there are multiple credit reports, all
      credit reports must be submitted in the case binder. xx. CAIVRS Report The Mortgagee
      must confirm that the HECM file contains a clear CAIVRS report or documentation
      from the creditor agency to support the verification and resolution of the debt.
      xxi. Asset Verification The Mortgagee must confirm that the HECM file contains
      the VOD and/or bank statements. xxii. Income Verification The Mortgagee must
      confirm that the HECM file contains verification of the Borrower’s income. xxiii.
      Gift Letter The Mortgagee must confirm that the HECM file contains a gift letter,
      if applicable. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II
      Insured Housing Programs Reverse Mortgages 7. Post-closing and Endorsement Handbook
      4000.1 714 Last Revised: 11/26/2025 xxiv. Total Annual Loan Cost Documentation
      The Mortgagee must ensure the TALC documentation is included. xxv. Evidence
      of Calculations The Mortgagee must confirm evidence of calculations is included
      for: • Principal Limit; • monthly payment; and • line of credit. A screen print
      is acceptable. xxvi. Life Expectancy Set-Aside The Mortgagee must ensure LESA
      calculations are included, if applicable. A screen print is acceptable. xxvii.
      Power of Attorney, Conservator or Guardian The Mortgagee must ensure a durable
      POA or legal document appointing a conservator or guardian, if applicable, is
      included. xxviii. Assignment Insurance Option The Mortgagee must ensure selection
      of the assignment insurance option. xxix. Form HUD-92800.5B, Conditional Commitment
      Direct Endorsement Statement of Appraised Value The Mortgagee must ensure form
      HUD-92800.5B, Conditional Commitment Direct Endorsement Statement of Appraised
      Value, is included. xxx. Form HUD-92051, Compliance Inspection Report, or Fannie
      Mae Form 1004D/Freddie Mac Form 442, Appraisal Update and/or Completion Report,
      if Applicable (A) Form HUD-92051, Compliance Inspection Report The Mortgagee
      must confirm that form HUD-92051, Compliance Inspection Report, is completed,
      signed, and dated by an approved inspector. Local government inspection with
      the underwriter certification may be accepted. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      B. Title II Insured Housing Programs Reverse Mortgages 7. Post-closing and Endorsement
      Handbook 4000.1 715 Last Revised: 11/26/2025 (B) Fannie Mae Form 1004D/Freddie
      Mac Form 442, Appraisal Update and/or Completion Report The Mortgagee must confirm
      that Fannie Mae Form 1004D/Freddie Mac Form 442, Appraisal Update and/or Completion
      Report, Part B, is completed, signed, and dated by an FHA Appraiser in good
      standing on the FHA Appraiser Roster. xxxi. Other Property Inspections and Reports,
      if Applicable The Mortgagee must ensure the HECM file contains property inspections
      and reports to address deficiencies noted by the Appraiser or otherwise required
      by the Mortgagee to meet MPR. xxxii. Appraisal Report The Mortgagee must ensure
      that Fannie Mae Form 1004/Freddie Mac Form 70, Uniform Residential Appraisal
      Report (URAR), or other appropriate appraisal form, including all attachments
      and addenda, is complete, and contains the Appraiser’s signature and date. xxxiii.
      Flood Certification The Mortgagee must ensure the Life of Loan Flood Certification
      is included. If applicable, the Mortgagee must also obtain a: • FEMA LOMA; •
      FEMA LOMR; or • FEMA NFIP Elevation Certificate (FEMA Form FF-206-FY-22-152).
      xxxiv. Specialized Eligibility Documents The Mortgagee must ensure that the
      HECM file contains all required program-specific documents. xxxv. Existing Properties
      Exhibits The Mortgagee must confirm that the documentation requirements found
      in the Property Acceptability Criteria section are in the mortgage file. xxxvi.
      Hazard Insurance The Mortgagee must ensure the Hazard Insurance policy is equal
      to the value of the property improvements. xxxvii. Title Insurance The Mortgagee
      must ensure the HECM file contains a Title Insurance Commitment or other acceptable
      evidence of title insurance, in an amount not less than the MCA. The title insurance
      policy must show the Borrower owns the Property in Fee Simple or on a II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse
      Mortgages 7. Post-closing and Endorsement Handbook 4000.1 716 Last Revised:
      11/26/2025 Leasehold that complies with FHA requirements, and that the Mortgage
      will be a first lien of record when recorded. c. Inspection and Repair Requirements
      for HECMs Pending Endorsement in Presidentially-Declared Major Disaster Areas
      (08/19/2024) i. Standard All Properties with HECMs pending endorsement in areas
      under a PDMDA designated for individual assistance must have an onsite damage
      inspection report that identifies and quantifies any dwelling damage, which
      includes interior and exterior photographs. The damage inspection report must
      be completed by an FHA Roster Appraiser even if the inspection shows no damage
      to the Property, and the report must be dated after the Incident Period (as
      defined by FEMA) or 14 Days from the Incident Period start date, whichever is
      earlier. The Appraiser may, at their discretion, perform a Remote Observation
      of the Property. If the effective date of the appraisal is on or after the date
      required above for an inspection, a separate damage inspection report is not
      necessary. FHA does not require the Appraiser to ensure utilities are on at
      the time of this inspection if they have not yet been restored for the area.
      Damage inspections may be completed by any FHA Roster Appraiser in good standing
      with geographic competence in the affected market. If the Mortgagee uses a different
      Appraiser than the Appraiser that did the original inspection of the Property,
      the Appraiser performing the damage inspection must be provided with a complete
      copy of the original appraisal. All damages must be repaired by licensed contractors
      or according to local jurisdictional requirements. All damages, regardless of
      amount, must be repaired and the Property restored to pre-loss condition with
      appropriate and applicable documentation. Based on the damage amounts shown
      in the Pending HECM Endorsement table below, repairs may be: • completed prior
      to submitting for endorsement; or • completed after endorsement provided that
      a repair escrow is established, and repair costs do not exceed permissible thresholds.
      The terms and conditions of establishing a repair escrow are not under FHA’s
      purview and must be negotiated between the Borrower and Mortgagee. ii. Required
      Documentation Mortgagees must include the initial damage inspection report in
      the case binder for all Properties. The following table shows additional required
      documentation for Properties that have closed but have not been endorsed. II.
      ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs
      Reverse Mortgages 7. Post-closing and Endorsement Handbook 4000.1 717 Last Revised:
      11/26/2025 Pending HECM Endorsement If… Then... No damage exists, Submit the
      HECM for endorsement and provide the initial damage inspection report. Damages
      are below $5,000 and the Property is habitable, Complete repairs prior to submitting
      for endorsement and provide the initial damage inspection report; or Establish
      a repair escrow prior to submitting for endorsement and provide the initial
      damage inspection report and repair escrow statement. Damages are $5,000 or
      above and the Property is habitable, Do not submit the HECM for endorsement.
      Repairs must be completed prior to endorsement. Provide the initial and final
      damage inspection report. The Property is not habitable, Do not submit the HECM
      for endorsement. Repairs must be completed prior to endorsement. Provide the
      initial and final damage inspection report.'
  judgment: false
