source:
  type: guide
  id: hud-4000-1-ii-d-procedures-for-endorsement
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — d. Procedures
    for Endorsement (04/10/2025)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — d. Procedures
    for Endorsement (04/10/2025).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-d-procedures-for-endorsement-full
  canonical_id: hud-4000-1-ii-d-procedures-for-endorsement-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — d. Procedures
    for Endorsement (04/10/2025)
  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 II — d. Procedures
      for Endorsement (04/10/2025)
    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: 'd. Procedures for Endorsement (04/10/2025) To initiate the insurance
      endorsement process, the Mortgagee must complete the Insurance Application function
      in FHAC and compile the uniform case binder, with all of the necessary documents.
      Instructions for specific requirements for data format and delivery to FHAC
      are found in the FHA Connection Guide. The Mortgage must be current to be eligible
      for endorsement. Either the sponsoring Mortgagee, principal or authorized agent
      must: • complete the Mortgage Insurance Premium (MIP) Transmittal via FHAC or
      by batch; • pay the Upfront MIP (UFMIP) to FHA in a lump sum within 10 Days
      after mortgage closing or the Disbursement Date, whichever is later; • send
      the MIP to FHA, and receive payment status through FHAC or email communications;
      • submit evidence of assignment of the case for endorsement in the name of the
      originating Mortgagee; and • transfer the case number to another Mortgagee prior
      to closing, complete the Lender Transfer screen in FHAC, and complete the assignment
      of the Mortgage after endorsement to a new holding or servicing Mortgagee via
      FHAC. i. Late Upfront Mortgage Insurance Premium Payments (A) 10–30 Days Late
      A one-time late charge of 4 percent is assessed on an UFMIP payment received
      more than 10 Days after the mortgage closing or Disbursement Date, whichever
      is later. The Mortgagee must pay the late fee before FHA will endorse the Mortgage
      for insurance. (B) More than 30 Days Late If the UFMIP is paid more than 30
      Days after mortgage closing or Disbursement Date, whichever is later, the Mortgagee
      will be assessed the late fee plus interest. The interest rate is the U.S. Department
      of the Treasury’s Current Value of Funds Rate in effect when the UFMIP payment
      is received. The Mortgagee must pay both charges before FHA will endorse the
      Mortgage for insurance. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A.
      Title II Insured Housing Programs Forward Mortgages 7. Post-closing and Endorsement
      Handbook 4000.1 386 Last Revised: 11/26/2025 ii. Assembly of Case Binder for
      Electronic Submission The Mortgagee must prepare and submit a uniform case binder
      through e-case submission in accordance with FHAC or through FHA Catalyst: Case
      Binder Module in accordance with the FHA Catalyst: Case Binder Module User Guide.
      The Mortgagee must ensure that all case binders are complete, meet FHA specifications,
      contain all required documents, and are submitted electronically according to
      the document order designated below. All appraisals must be submitted through
      FHA’s EAD portal prior to endorsement. Complete instructions and data delivery
      format requirements for each appraisal form are found in the Appraisal Report
      and Data Delivery Guide. Property Related Documents Conditional Commitment Direct
      Endorsement Statement of Appraised Value HUD-92800.5B Compliance Inspection
      Report HUD-92051 Mortgagee Assurance of Completion HUD-92300 Appraisal Update
      and/or Completion Report Fannie Mae Form 1004D/Freddie Mac Form 442 Life of
      Loan Flood Certification Evidence of Flood Insurance (required if Property is
      in flood zone A or V.) Evidence of Hazard Insurance Wood Destroying Insect Inspection
      Report or state mandated report NPMA-33 Waivers – Property specific issued by
      FHA Borrower’s Contract with Respect to Hotel and Transient Use of Property
      HUD-92561 New Construction Exhibits (for all Properties built or proposed in
      the last 12 months) Builder’s Certification of Plans, Specifications, and Site
      HUD-92541 Warranty of Completion of Construction HUD-92544 Certificate of Occupancy
      (CO) and Building Permit Final Inspection 3 FHA Inspections Local Health Authority
      Approval for Individual Water and Sewer Systems Subterranean Termite Protection
      Builder’s Guarantee HUD-NPMA-99-A New Construction Subterranean Termite Service
      Record HUD-NPMA-99-B LOMR, LOMA, Elevation Certificate II. ORIGINATION THROUGH
      POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward Mortgages
      7. Post-closing and Endorsement Handbook 4000.1 387 Last Revised: 11/26/2025
      Manufactured Housing Engineer’s Certification for Manufactured Housing Foundation
      LOMR, LOMA, Elevation Certificate (if not included with New Construction Docs)
      Condominiums Loan Level/Single-Unit Approval Questionnaire HUD-9991 Other Required
      Condominium Documents Specialized Eligibility Documents Hawaiian Home Lands
      Presidentially-Declared Disaster Area Energy Efficient Documents & Home Energy
      Rating System (HERS) Report 203(k) Documents Borrower’s Acknowledgement HUD-92700-A
      Borrower Identity of Interest Certification Rehabilitation Self-Help Agreement
      Homeowner/Contractor Agreement Contractor & Borrower Cost Estimates Rehabilitation
      Loan Agreement Rehabilitation Loan Rider Consultant Work Write-Up Consultant
      Identity of Interest Certification Draw Request HUD-9746-A Purchase Transactions
      Sales Contract Amendatory Clause Real Estate Certification Other contract addenda
      or short sale approval Chain of Title and Title Evidence demonstrating Good
      and Marketable Title Underwriting Documentation Late Endorsement Letter FHA
      Connection Screen Prints FHA Loan Underwriting and Transmittal Summary HUD-92900-LT
      Underwriter Memos, Clarifications, or Attachments Automated Underwriting System
      (AUS) Feedback Certificate Mortgage Note for new first lien Security Instrument
      for new first lien Mortgage Riders & Allonges Secondary Lien Exhibits All Closing
      Disclosures or similar legal documents with addenda II. ORIGINATION THROUGH
      POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward Mortgages
      7. Post-closing and Endorsement Handbook 4000.1 388 Last Revised: 11/26/2025
      Loan Estimate FHA/RESPA/TILA Required Disclosures including Affiliated Business
      Arrangement Disclosure Statement if applicable Buydown Agreement Power of Attorney
      Uniform Residential Loan Application (URLA) – Initial and Final Fannie Mae Form
      1003/Freddie Mac Form 65 HUD Addendum to Uniform Residential Loan Application
      – Initial and Final HUD-92900-A Borrower Authorization for Verification Borrower
      Authorization for Use of Information Protected under Privacy Act Refinance Documentation
      Refinance Authorization Screen Printout Payoff Statement(s) for all liens to
      be satisfied with Mortgage proceeds Borrower Certification for Refinance of
      Borrowers in Negative Equity Position HUD-92918 Chain of Title and Title Evidence
      demonstrating Good and Marketable Title Borrower Identification Documentation
      Evidence of Borrower’s valid government-issued photo identification or written
      statement from Mortgagee verifying review of valid government- issued photo
      identification Evidence of Social Security Number (SSN) or Taxpayer Identification
      Number (TIN) Legal residency status documents for non-U.S. citizens Credit and
      Capacity Documentation Credit report(s) Verification of Mortgage or rent Credit
      related documentation and explanations Housing Counseling Certificate(s) Source
      of Funds Verification Verification of non-gift source of funds Verification
      of gift source of funds Income and Employment Documentation All required documentation
      grouped by Borrower iii. Case Binder Submission – Direct Endorsement Non-lender
      Insurance The case binder must be submitted to FHA no later than 60 Days after
      the Disbursement Date. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title
      II Insured Housing Programs Forward Mortgages 7. Post-closing and Endorsement
      Handbook 4000.1 389 Last Revised: 11/26/2025 (A) Late Submission If the case
      binder is submitted more than 60 Days after the Disbursement Date, the Mortgagee
      must submit a late endorsement request, certifying that: • no Mortgage Payment
      is currently unpaid; • all escrow accounts for taxes, Hazard Insurance and MIPs
      are current and intact, except for Disbursements that may have been made to
      cover payments for which the accounts were specifically established; and • neither
      the Mortgagee nor its agents provided the funds to bring and/or keep the Mortgage
      current or to bring about the appearance of an acceptable payment history. Each
      late endorsement request must: • list the FHA case number; • list the Borrower’s
      name; • be dated and signed by the Mortgagee’s representative; and • be printed
      on company letterhead with the Mortgagee’s address and telephone number. (B)
      Assignee Mortgagee [Text was deleted in this section.] The assignee Mortgagee
      of a Mortgage may submit the Mortgage for endorsement in its name or the name
      of the originating Mortgagee. The Purchasing Mortgagee may pay any required
      MIP, late charges, and interest. (C) After Receipt of a Notice of Return Notice
      of Return (NOR) refers to a notification to the Mortgagee specifying the reason
      a Mortgage is not currently eligible for endorsement. If FHA issues a NOR, the
      Mortgagee may request reconsideration for insurance endorsement. All requests
      for reconsideration must be received by FHA within the 60-Day endorsement submission
      period or within 30 Days of the issuance of the NOR, whichever is longer. If
      the request for reconsideration is submitted after this time period, the Mortgagee
      must follow the guidelines for late submission. iv. Ineligible for Endorsement
      – Non-lender Insurance (A) Notice of Return If the Mortgage is ineligible for
      insurance endorsement, FHAC issues an electronic NOR, which states the reasons
      for non-endorsement and any corrective actions that the Mortgagee must take.
      II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing
      Programs Forward Mortgages 7. Post-closing and Endorsement Handbook 4000.1 390
      Last Revised: 11/26/2025 If the Mortgage is permanently rejected for insurance
      endorsement, the Mortgagee must notify the Borrower that they do not have an
      FHA-insured Mortgage and of the circumstances that made the Mortgage ineligible
      for FHA insurance. (B) Additional Requirements for Permanently Rejected Mortgages
      The Mortgagee must obtain a refund of both the UFMIP and any periodic MIP paid
      by or on behalf of the Borrower, and apply the refund to the principal balance
      of the Mortgage. (C) Excessive Mortgage Amounts An excessive mortgage amount
      occurs when the Mortgagee closes a Mortgage in an amount higher than what is
      permitted by FHA requirements. The Mortgage is not eligible for insurance until
      the amount is reduced to within permissible limits. The Mortgagee may choose
      to either pay down the principal balance, or re-close the Mortgage to an insurable
      amount. The Mortgagee must provide a copy of the payment ledger showing that
      the principal balance has been paid down to an insurable amount. v. Endorsement
      Processing – Lender Insurance Once the Mortgagee has completed the entry of
      all required data, completed the pre- endorsement review, and satisfied itself
      that the Mortgage meets HUD requirements, it will click “yes” in the Insurance
      Decision field, enter the FHA Connection ID of the individual insuring the Mortgage,
      enter the insurance date on the Insurance Application screen and click “send.”
      The Mortgagee must endorse the Mortgage no later than 60 Days after the Disbursement
      Date. Late Submission If the Mortgage is endorsed more than 60 Days after the
      Disbursement Date, the Mortgagee must complete a late endorsement certification
      stating: • no Mortgage Payment is currently unpaid; • all escrow accounts for
      taxes, Hazard Insurance and MIPs are current and intact, except for Disbursements
      that may have been made to cover payments for which the accounts were specifically
      established; and • neither the Mortgagee nor its agents provided the funds to
      bring and/or keep the Mortgage current or to bring about the appearance of an
      acceptable payment history. Each late endorsement certification must: • list
      the FHA case number; • list the Borrower’s name; II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages 7. Post-closing and Endorsement
      Handbook 4000.1 391 Last Revised: 11/26/2025 • be dated and signed by the Mortgagee’s
      representative; and • be printed on company letterhead with the Mortgagee’s
      address and telephone number. The Mortgagee must retain the certification in
      the case binder. vi. Case Warnings – Lender Insurance Case warnings are issued
      by FHAC based on system edits. They identify issues that must be addressed before
      the Mortgage can be insured. There are two kinds of case warnings: non-severe
      and severe. (A) Severe Case Warnings Severe case warnings are case warnings
      that make the Mortgage ineligible for Lender Insurance (LI), which include:
      • a Borrower failed or is pending SSN validation; • a Borrower has a record
      in CAIVRS; • the pre-endorsement delinquency status is delinquent; or • a deficiency
      exists causing risks to HUD. FHA will add text to the case warning message screen
      identifying the reasons requiring submission of the case binder to FHA for a
      pre-endorsement review. Once the severe case warning is corrected, documentation
      in support of clearing the case warning and the case binder must be submitted
      to FHA for pre-endorsement review and endorsement processing. (B) Non-severe
      Case Warnings Non-severe case warnings are warnings to provide guidance to the
      Mortgagee that conditions have been detected and must be researched before the
      Mortgage can be endorsed. If, after researching the matter, the Mortgagee determines
      that HUD requirements have not been violated, the Mortgagee may resubmit the
      Mortgage for insurance. By resubmitting the information, the Mortgagee is representing
      that the warning has been reviewed and the Mortgage is eligible for insurance
      endorsement. FHAC will then allow the Mortgage to be insured by the Mortgagee.
      vii. Mortgagee with Conditional Direct Endorsement Approval (Test Case) Mortgagees
      who receive a Direct Endorsement Program Test Case Phase approval letter from
      FHA must follow the Test Case Phase Case Binder Submission process. II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward
      Mortgages 7. Post-closing and Endorsement Handbook 4000.1 392 Last Revised:
      11/26/2025'
  judgment: false
