source:
  type: regulation
  id: hud-ml-2022-18
  authority: "HUD Mortgagee Letter 2022-18 — Acceptance of Private Flood Insurance for FHA-Insured Mortgages"
  description: 'HUD ML 2022-18 updates Handbook 4000.1 (and Handbook 4235.1 REV-1 for

    HECMs) to permit Borrowers to satisfy the FHA mandatory Flood Insurance

    purchase requirement with a Private Flood Insurance (PFI) policy meeting

    specified FHA requirements, in lieu of a National Flood Insurance Program

    (NFIP) policy.

    '
obligations:
- id: hud-ml-2022-18-effective-date
  canonical_id: hud-ml-2022-18-effective-date
  section: "HUD ML 2022-18 — Effective Date"
  description: '[LENDER] must implement the provisions of HUD ML 2022-18, which permit

    Acceptance of Private Flood Insurance for FHA-Insured Mortgages, effective

    December 21, 2022.

    '
  type: do
  audit_question: For every FHA-insured Mortgage closed on or after December 21, 2022 where the Borrower elects Private Flood Insurance in lieu of NFIP coverage, can [LENDER] demonstrate that the ML 2022-18 PFI acceptance and verification procedures were applied?
  workflow_phase: origination
  owner_role: compliance_officer
  secondary_owner_role: default_servicing_analyst
  cadence: continuous
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - origination
  - servicing
  - flood-insurance
  - effective-date
  - promoted
  primary_source:
    tier: 1
    authority: "HUD ML 2022-18 — Effective Date"
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2022-18hsgml.pdf
    snapshot_id: 0a4b11f9335abf02
    fetched_at: '2026-05-22T19:56:08Z'
    content_hash: sha256:0e0d512a435b69bd4497560b62d41869e81b8ca8131f0d7fa4b0762fdaa0a6e4
    paragraph_quote: "The provisions of this Mortgagee Letter are effective on December 21, \n2022."
    drafter_attestation: 'Copied verbatim from snapshot 0a4b11f9335abf02 (content.txt) at

      2026-05-22T20:00Z. Substring is the Effective Date trigger of

      ML 2022-18.

      '
  promoted_at: '2026-05-22T20:56:06+00:00'
  promoted_from: hud-ml-2022-18-roundb-v1.yaml
  program_review: Does the program account for the PFI applicability trigger — applying the ML 2022-18 Private Flood Insurance acceptance/verification procedures for loans closed on or after December 21, 2022 where the Borrower elects PFI in lieu of NFIP?
  file_review: Spot-check post-12/21/2022 PFI-elected files; confirm the PFI acceptance/verification procedures were applied.
  judgment: false
- id: hud-ml-2022-18-flood-insurance-required-in-sfha
  canonical_id: hud-ml-2022-18-flood-insurance-required-in-sfha
  section: "HUD ML 2022-18 — Eligible Properties and Required Flood Insurance Coverage (II.A.1.b.iv(A)(1)(a)(ii))"
  description: 'For an FHA-insured Mortgage where the property improvements are located in

    a FEMA-designated Special Flood Hazard Area (SFHA) and NFIP insurance is

    available in that community, [LENDER] must ensure the Borrower obtains

    and maintains Flood Insurance (NFIP or qualifying Private Flood Insurance).

    '
  type: do
  audit_question: For every FHA-insured Mortgage on a Property with improvements in an SFHA where NFIP insurance is available, can [LENDER] demonstrate that the Borrower obtained and continues to maintain Flood Insurance (NFIP or qualifying PFI) for the life of the Mortgage?
  workflow_phase: origination
  owner_role: compliance_officer
  secondary_owner_role: default_servicing_analyst
  cadence: continuous
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - origination
  - servicing
  - flood-insurance
  - promoted
  primary_source:
    tier: 1
    authority: "HUD ML 2022-18 — II.A.1.b.iv(A)(1)(a)(ii)(A)"
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2022-18hsgml.pdf
    snapshot_id: 0a4b11f9335abf02
    fetched_at: '2026-05-22T19:56:08Z'
    content_hash: sha256:0e0d512a435b69bd4497560b62d41869e81b8ca8131f0d7fa4b0762fdaa0a6e4
    paragraph_quote: "If the property improvements (dwelling and related \nstructures/equipment essential to the value of the Property \nand subject to flood damage) are located in an area \ndesignated by FEMA as an SFHA and NFIP insurance is \navailable in that community, the Mortgagee must ensure the \nBorrower obtains and maintains Flood Insurance."
    drafter_attestation: 'Copied verbatim from snapshot 0a4b11f9335abf02 (content.txt) at

      2026-05-22T20:00Z. Substring is the eligible-properties Flood

      Insurance requirement incorporated into Handbook 4000.1

      II.A.1.b.iv(A)(1)(a)(ii)(A) by ML 2022-18.

      '
  promoted_at: '2026-05-22T20:56:06+00:00'
  promoted_from: hud-ml-2022-18-roundb-v1.yaml
  program_review: Does the program account for the SFHA condition — ensuring the Borrower obtains and maintains Flood Insurance (NFIP or qualifying PFI) where improvements are in an SFHA and NFIP is available?
  file_review: Spot-check SFHA files where NFIP is available; confirm Flood Insurance was obtained at closing and is maintained for the life of the Mortgage.
  judgment: false
- id: hud-ml-2022-18-pfi-requirements
  canonical_id: hud-ml-2022-18-pfi-requirements
  section: "HUD ML 2022-18 — Requirements for PFI (II.A.1.b.iv(A)(1)(a)(ii)(C))"
  description: 'If the Borrower purchases a Private Flood Insurance (PFI) policy in lieu

    of an NFIP policy, [LENDER] must ensure the PFI policy meets the FHA

    requirements specified in Handbook 4000.1 II.A.1.b.iv(A)(1)(a)(ii)(C),

    including state licensure of the insurer, coverage at least as broad as

    NFIP, deductibles no higher than NFIP, 45-Day pre-cancellation notice,

    NFIP availability disclosure, mortgage interest clause, one-year suit

    limitation, and NFIP-equivalent cancellation provisions.

    '
  type: do
  audit_question: For every FHA-insured Mortgage where the Borrower obtained Private Flood Insurance in lieu of NFIP, can [LENDER] evidence that the PFI policy was verified to meet each of the FHA PFI requirements in Handbook 4000.1 II.A.1.b.iv(A)(1)(a)(ii)(C)?
  workflow_phase: origination
  owner_role: compliance_officer
  secondary_owner_role: default_servicing_analyst
  cadence: per-loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - origination
  - servicing
  - flood-insurance
  - private-flood-insurance
  - promoted
  primary_source:
    tier: 1
    authority: "HUD ML 2022-18 — II.A.1.b.iv(A)(1)(a)(ii)(C)"
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2022-18hsgml.pdf
    snapshot_id: 0a4b11f9335abf02
    fetched_at: '2026-05-22T19:56:08Z'
    content_hash: sha256:0e0d512a435b69bd4497560b62d41869e81b8ca8131f0d7fa4b0762fdaa0a6e4
    paragraph_quote: "If the Borrower purchases a PFI policy in lieu of an NFIP \npolicy, the Mortgagee must ensure the PFI policy meets the \nfollowing requirements:"
    drafter_attestation: 'Copied verbatim from snapshot 0a4b11f9335abf02 (content.txt) at

      2026-05-22T20:00Z. Substring is the PFI verification standard

      headline incorporated into Handbook 4000.1

      II.A.1.b.iv(A)(1)(a)(ii)(C) by ML 2022-18; the eight enumerated

      requirements are summarized in the description.

      '
  promoted_at: '2026-05-22T20:56:06+00:00'
  promoted_from: hud-ml-2022-18-roundb-v1.yaml
  program_review: Do the P&Ps ensure any PFI policy elected in lieu of NFIP is verified against each FHA PFI requirement (insurer state licensure, coverage at least as broad as NFIP, deductibles no higher, 45-Day pre-cancellation notice, NFIP-availability disclosure, mortgage-interest clause, one-year suit limitation, NFIP-equivalent cancellation)?
  file_review: Pull PFI-elected files; confirm the PFI policy was verified to meet each FHA PFI requirement at Handbook 4000.1 II.A.1.b.iv(A)(1)(a)(ii)(C).
  judgment: false
_promotion_history:
- promoted_at: '2026-05-22T20:56:06+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\hud-ml-2022-18-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
