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

    See obligation entries for operative requirements and verbatim

    primary-source citations.

    '
obligations:
- id: hud-4000-1-iii-a-2-e-preserve-first-lien-status
  canonical_id: hud-4000-1-iii-a-2-e-preserve-first-lien-status
  section: "HUD Handbook 4000.1 III.A.2.e — Lien Status"
  description: '[LENDER] must preserve the first lien status of the FHA-insured

    Mortgage. HUD will not pay a claim on a Mortgage that is not in first

    priority position.

    '
  type: do
  audit_question: For every FHA-insured Mortgage in [LENDER]'s servicing portfolio, can [LENDER] evidence preservation of first lien status (no intervening senior lien, no inadvertent subordination, title monitoring per [LENDER]'s P&P)?
  workflow_phase: servicing
  owner_role: compliance_officer
  secondary_owner_role: default_servicing_analyst
  cadence: ongoing
  consequence: "Claim ineligibility — HUD will not pay a claim on a Mortgage that is not in first priority position."
  tags:
  - round-b
  - regulator-direct
  - hud-handbook-4000-1
  - fha
  - servicing
  - lien-status
  - first-lien
  - claim-eligibility
  - promoted
  primary_source:
    tier: 1
    authority: "HUD Handbook 4000.1 III.A.2.e — Lien Status"
    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 preserve the first lien status of the FHA-insured Mortgage. HUD will '
    drafter_attestation: Copied verbatim from HUD Handbook 4000.1 snapshot 8c03836f77f317e1 (III.A.2.e) at 2026-05-23.
  promoted_at: '2026-05-23T00:42:26+00:00'
  promoted_from: hud-4000-1-iii-a-2-e-roundb-v1.yaml
  program_review: Do the P&Ps facilitate preservation of first-lien status (title monitoring, no inadvertent subordination) — given HUD will not pay a claim on a non-first-priority Mortgage?
  file_review: Review the title-monitoring control and a sample; the compliance person judges whether first-lien status is adequately preserved (no intervening senior lien or inadvertent subordination).
  judgment: true
_promotion_history:
- promoted_at: '2026-05-23T00:42:26+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\hud-4000-1-iii-a-2-e-roundb-v1.yaml
  candidates_promoted: 1
  candidates_skipped_existing: 0
