source:
  type: guide
  id: hud-4000-1-iii-f-servicing-fees-and-charges
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — f. Servicing
    Fees and Charges (07/01/2025)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — f. Servicing
    Fees and Charges (07/01/2025).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-f-servicing-fees-and-charges-full
  canonical_id: hud-4000-1-iii-f-servicing-fees-and-charges-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — f. Servicing
    Fees and Charges (07/01/2025)
  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 — f. Servicing
      Fees and Charges (07/01/2025)
    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: 'f. Servicing Fees and Charges (07/01/2025) i. Definition 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) Reasonable and Customary Fees and
      Charges The Mortgagee may collect certain 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, up to the amount listed in Appendix
      3.0. III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs
      Forward Mortgages 1. Servicing of FHA-Insured Mortgages Handbook 4000.1 1164
      Last Revised: 11/26/2025 (B) Prohibited Fees and Charges The Mortgagee must
      not charge the Borrower for the following services: • costs of telephone calls,
      certified mail, arranging and conducting the interview, or other activities
      that are normally considered a part of a prudent Mortgagee’s servicing activity;
      • preparing and providing evidence of Payoff, Reconveyance, or termination of
      the Mortgage; • providing information essential to the Payoff; • recording the
      Payoff of the Mortgage in states where recordation is the responsibility of
      the Mortgagee; • fees for services performed by attorneys or trustees who are
      salaried members of the Mortgagee’s staff; or • Mortgagee’s use of an independent
      contractor, such as services related to the interview or a tax service, to furnish
      tax data and information necessary to pay property taxes or make the payments
      on behalf of the Mortgagee. 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 cost
      of any work performed or out-of-pocket expenses.'
  judgment: false
