source:
  type: guide
  id: hud-4000-1-iii-a-servicing-in-compliance-with-law
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — a. Servicing
    in Compliance with Law (04/29/2024)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — a. Servicing
    in Compliance with Law (04/29/2024).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-a-servicing-in-compliance-with-law-full
  canonical_id: hud-4000-1-iii-a-servicing-in-compliance-with-law-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — a. Servicing
    in Compliance with Law (04/29/2024)
  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 III — a. Servicing
      in Compliance with Law (04/29/2024)
    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: 'a. Servicing in Compliance with Law (04/29/2024) i. Definitions
      The Mortgage Holder (Holder) is the entity who holds title to the FHA-insured
      HECM and has the right to enforce the mortgage agreement. The Mortgage Servicer
      (Servicer) refers to the entity responsible for performing servicing actions
      on FHA-insured HECMs on its own behalf or on behalf of or at the direction of
      another FHA-approved Mortgagee. ii. Standard Holders must ensure all FHA-insured
      HECMs are serviced by a Servicer in accordance with FHA requirements and all
      applicable laws. Servicers must service all FHA-insured HECMs in accordance
      with FHA requirements and all applicable laws. (A) Laws Applicable to Mortgage
      Servicing Mortgagees must comply with all laws, rules, and requirements applicable
      to mortgage servicing, including requirements under the purview of the Consumer
      Financial Protection Bureau (CFPB), the Real Estate Settlement Procedures Act
      (RESPA) and the Truth in Lending Act (TILA), as may be made applicable to HECMs.
      FHA requirements that are more stringent or restrictive than those provided
      for in applicable law are set forth in this Handbook 4000.1 and the Mortgagee
      must comply with these requirements. (B) Contract Terms The Mortgagee must comply
      with the HECM contract terms unless doing so would result in violation of a
      more stringent or restrictive statute. III. SERVICING AND LOSS MITIGATION B.
      Title II Insured Housing Programs Reverse Mortgages 1. Servicing of FHA-Insured
      HECMs Handbook 4000.1 1443 Last Revised: 11/26/2025 (C) Nondiscrimination Policy
      Mortgagees must comply with all antidiscrimination laws, rules, and requirements
      applicable to servicing FHA-insured HECMs, including full compliance with the
      applicable requirements of: • the Fair Housing Act, 42 U.S.C. §§ 3601–3619;
      • the Fair Credit Reporting Act, 15 U.S.C. § 1681‒1681x; and • the Equal Credit
      Opportunity Act (ECOA), 15 U.S.C. §§ 1691‒1691f. The Mortgagee must make a financial
      assessment in a uniform matter that shall not discriminate due to race, color,
      religion, sex, national origin, familial status, disability, marital status,
      source of income of the Borrower, or location of the Property, or because the
      applicant has in good faith exercised any right under the Consumer Credit Protection
      Act (15 U.S.C. § 1601 et. seq).'
  judgment: false
