source:
  type: guide
  id: hud-4000-1-iii-g-servicing-fees-and-charges
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — g. Servicing
    Fees and Charges (04/29/2024)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — g. Servicing
    Fees and Charges (04/29/2024).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-g-servicing-fees-and-charges-full
  canonical_id: hud-4000-1-iii-g-servicing-fees-and-charges-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — g. Servicing
    Fees and Charges (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 — g. Servicing
      Fees and Charges (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: 'g. Servicing Fees and Charges (04/29/2024) i. Definitions Allowable
      Fees and Charges are those costs associated with the servicing of the Mortgage
      that are permitted to be charged to the Borrower. Prohibited Fees and Charges
      are those costs associated with the servicing of the Mortgage that may not be
      charged to the Borrower. ii. Standard (A) Allowable Fees and Charges The Mortgagee
      may collect certain reasonable and customary fees and charges from the Borrower
      after the Mortgage is insured and as authorized by HUD below. All fees must
      be: • reasonable and customary for the local jurisdiction; • based on actual
      cost of the work performed or actual out-of-pocket expenses and not a percentage
      of either the face amount or the unpaid principal balance of the Mortgage; and
      • within the maximum amount allowed by HUD. (B) Request for Approval for Other
      Fees or Charges The Mortgagee may request approval from HUD through HERMIT for
      any fee, charge, or unusual service not specifically mentioned in this Handbook
      4000.1. (C) Prohibited Fees and Charges The Mortgagee must not charge the Borrower
      for the following services: • costs of telephone calls, personal visits with
      the Borrower, certified mail, or other activities that are normally considered
      a part of a prudent Mortgagee’s servicing activity; • Mortgagee’s use of an
      independent contractor such as a tax service to furnish tax data and information
      necessary to pay property taxes or make the payments on behalf of the Mortgagee;
      • preparing and providing evidence of Payoff, Reconveyance, or termination of
      the Mortgage, except for a trustee’s fee if the deed of trust provides for payment
      of such a fee for execution of a satisfactory, release, or trustee’s deed when
      the deed of trust is paid in full; • providing information essential to the
      Payoff; • recording the Payoff of the Mortgage in states where recordation is
      the responsibility of the Mortgagee; or • fees for services performed by attorneys
      or trustees who are salaried members of the Mortgagee’s staff. III. SERVICING
      AND LOSS MITIGATION B. Title II Insured Housing Programs Reverse Mortgages 1.
      Servicing of FHA-Insured HECMs Handbook 4000.1 1452 Last Revised: 11/26/2025
      iii. Required Documentation The Mortgagee must include in the Servicing File:
      • documentation of the amount of any fees and charges paid or payable by the
      Borrower; and • documentation supporting the actual costs of any work performed
      or out-of- pocket expenses.'
  judgment: false
