source:
  type: regulation
  id: hud-4000-1-iii-a-2-c
  authority: HUD Handbook 4000.1 III.A.2.c — Late Charges
  description: 'HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.c.

    See obligation entries for operative requirements and verbatim

    primary-source citations.

    '
obligations:
- id: hud-4000-1-iii-a-2-c-full
  canonical_id: hud-4000-1-iii-a-2-c-full
  section: HUD Handbook 4000.1 III.A.2.c
  description: "Late Charges: c. Late Charges (10/01/2025) \nLate Charges are charges assessed if a Mortgage\
    \ Payment is received more than 15 Days \nafter the due date. \nThe Mortgagee may consider a Borrower’s\
    \ Mortgage Payment late if the payment is \nreceived by the Mortgagee more than 15 Days after the\
    \ due date, except for paymen…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - hud
  - 4000-1
  - curated
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 III.A.2.c.ii — Standard
    source_class: hud-handbook-4000-1
    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: "c. Late Charges (10/01/2025) \nLate Charges are charges assessed if a Mortgage Payment\
      \ is received more than 15 Days \nafter the due date. \nThe Mortgagee may consider a Borrower’s\
      \ Mortgage Payment late if the payment is \nreceived by the Mortgagee more than 15 Days after the\
      \ due date, except for payments \nreceived from Borrowers in accordance with a Trial Payment Plan\
      \ Agreement. The \nMortgagee may assess a late charge on the 17th Day of the month. \nFor Mortgages\
      \ assigned a case number on or after March 14, 2016, the Mortgagee may \nassess a Late Charge, not\
      \ to exceed 4 percent of the overdue payment of P&I and in \naccordance with applicable state and\
      \ federal laws. \nFor Mortgages assigned a case number before March 14, 2016, the Mortgagee may\
      \ assess \na Late Charge calculated based on overdue PITI if permitted under the terms of the \n\
      mortgage Note and under applicable state and federal laws. \n(A) Notifying the Borrower of the Late\
      \ Charge \nBefore collecting the Late Charge or returning a Mortgage Payment to the Borrower \n\
      for failing to pay the Late Charge, the Mortgagee must provide the Borrower with an \nadvance written\
      \ notice of the charge. \n\n \nThe Mortgagee must include in the advance notice the following information:\
      \ \n• the due date of the monthly Mortgage Payment; \n• the amount of the regular monthly Mortgage\
      \ Payment; \n• the date on which the Late Charge will be imposed; and \n• the amount of the Late\
      \ Charge (or the full amount now due which consists of \nthe regular monthly Mortgage Payment plus\
      \ the Late Charge amount). \n(B) Application of Subsequent Payment to Unpaid Late Charges \nAfter\
      \ advance notice has been sent to the Borrower, the Mortgagee may: \n• treat any subsequent payment\
      \ that does not include the Late Charge in \naccordance with HUD’s Partial Payments for Mortgages\
      \ in Default section; \n• deduct amounts due for Late Charges owed for a previous installment. \n\
      (C) Default/Foreclosure Due to Unpaid Late Charges \nA Mortgage may be technically in Default by\
      \ its terms if a Late Charge is not paid \nwithin 30 Days after it becomes due. However, the Mortgagee\
      \ may not initiate \nforeclosure action when the only delinquency is due to: \n• unpaid Late Charges\
      \ that are due on the account; and/or \n• unpaid monthly payments that remain unpaid because the\
      \ Mortgagee did not \ncomply with HUD’s Partial Payments for Mortgages in Default section. \nThe\
      \ Mortgagee must ensure that the Servicing File reflects any Late Charges assessed \nand includes\
      \ any advance written notice of such charges sent to the Borrower."
    drafter_attestation: Verbatim section from snapshot 8c03836f77f317e1; boundary human-curated + substring-verified
      (2026-07-23).
  judgment: false
