source:
  type: regulation
  id: hud-ml-2022-09
  authority: "HUD Mortgagee Letter 2022-09 — Calculating Effective Income After a Reduction or Loss of Income for Borrowers Affected by Presidentially-Declared COVID-19 National Emergency"
  description: 'HUD ML 2022-09 updates Handbook 4000.1 Sections II.A.4.c (TOTAL) and

    II.A.5.b (Manual) to instruct Mortgagees how to calculate Effective Income

    for Borrowers affected by COVID-19 Related Economic Events, including

    salary, hourly, overtime/bonus/tip, family-owned business, commission, and

    self-employment income.

    '
obligations:
- id: hud-ml-2022-09-effective-date
  canonical_id: hud-ml-2022-09-effective-date
  section: "HUD ML 2022-09 — Effective Date"
  description: 'The provisions of HUD ML 2022-09 are effective for all case numbers

    assigned on or after September 5, 2022; [LENDER] may begin using the

    policies announced in the ML immediately.

    '
  type: do
  audit_question: For every FHA case number assigned on or after September 5, 2022, can [LENDER] demonstrate that the ML 2022-09 COVID-19 Effective Income calculation policies were applied where the Borrower was affected by a COVID-19 Related Economic Event?
  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
  - underwriting
  - income
  - covid-19
  - effective-date
  - promoted
  primary_source:
    tier: 1
    authority: "HUD ML 2022-09 — Effective Date"
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2022-09hsgml.pdf
    snapshot_id: e1fdf1dc5afec054
    fetched_at: '2026-05-22T19:55:35Z'
    content_hash: sha256:5f30fc482e956efc75f043a409f0b75ac9aecfe6c854dd2ae09d99a48009d046
    paragraph_quote: "The provisions of this ML are effective for all case numbers assigned on or \nafter September 5, 2022; however, Mortgagees may begin using the policies \nannounced in this ML immediately."
    drafter_attestation: 'Copied verbatim from snapshot e1fdf1dc5afec054 (content.txt) at

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

      ML 2022-09.

      '
  promoted_at: '2026-05-22T20:56:00+00:00'
  promoted_from: hud-ml-2022-09-roundb-v1.yaml
  program_review: Does the program account for the applicability trigger — applying the COVID-19 Effective Income policies to case numbers assigned on or after September 5, 2022 where the Borrower was affected by a COVID-19 Related Economic Event?
  file_review: Spot-check post-9/5/2022 cases involving a COVID-19 Related Economic Event; confirm the COVID-19 Effective Income policy was applied.
  judgment: false
- id: hud-ml-2022-09-hourly-covid-lesser-of
  canonical_id: hud-ml-2022-09-hourly-covid-lesser-of
  section: "HUD ML 2022-09 — Hourly Employees with Variable Hours: Exception Due to COVID-19 Related Economic Event (II.A.4.c.iii(C)(2)(b))"
  description: 'For Borrowers paid hourly whose hours vary and who were affected by a

    COVID-19 Related Economic Event, [LENDER] must calculate Effective Income

    using the lesser of (a) the average of income for the period prior to the

    COVID-19 Related Economic Event calculated under the Hourly Standard, or

    (b) the average of income earned since the COVID-19 Related Economic Event.

    '
  type: do
  audit_question: For every Borrower paid hourly with variable hours who was affected by a COVID-19 Related Economic Event, can [LENDER] evidence that Effective Income was calculated as the lesser of (a) the pre-event Hourly Standard average and (b) the average earned since the event?
  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
  - underwriting
  - income
  - covid-19
  - promoted
  primary_source:
    tier: 1
    authority: "HUD ML 2022-09 — II.A.4.c.iii(C)(2)(b)"
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2022-09hsgml.pdf
    snapshot_id: e1fdf1dc5afec054
    fetched_at: '2026-05-22T19:55:35Z'
    content_hash: sha256:5f30fc482e956efc75f043a409f0b75ac9aecfe6c854dd2ae09d99a48009d046
    paragraph_quote: "For employees who are paid hourly and whose hours vary, the \nMortgagee must calculate the Effective Income by using the \nlesser of:"
    drafter_attestation: 'Copied verbatim from snapshot e1fdf1dc5afec054 (content.txt) at

      2026-05-22T20:00Z. Substring is the operative "lesser of" rule

      for hourly variable-hours employees affected by COVID-19 Related

      Economic Events incorporated into Handbook 4000.1

      II.A.4.c.iii(C)(2)(b) by ML 2022-09.

      '
  promoted_at: '2026-05-22T20:56:00+00:00'
  promoted_from: hud-ml-2022-09-roundb-v1.yaml
  program_review: Does the program account for the hourly-variable-hours COVID condition — calculating Effective Income as the lesser of the pre-event Hourly Standard average and the average earned since the event?
  file_review: Spot-check hourly-variable-hours COVID-affected files; confirm Effective Income was the lesser of the pre-event and post-event averages.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-22T20:56:00+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\hud-ml-2022-09-roundb-v1.yaml
  candidates_promoted: 2
  candidates_skipped_existing: 0
