HUD Handbook 4000.1 — Doing Business with FHA — Supervised Mortgagee approval requirements

hud-4000-1-i-a-3-supervised-mortgagee-smoke

Smoke-test register for HUD Handbook 4000.1 Part I (Doing Business with FHA) — Supervised Mortgagee general approval requirements. Smoke-test scope: ONE obligation only; full Part I expansion happens in subsequent Round D drafting batches.

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source:
  type: regulation
  id: hud-4000-1-i-a-3-supervised-mortgagee-smoke
  authority: HUD Handbook 4000.1 — Doing Business with FHA — Supervised Mortgagee approval requirements
  description: |
    Smoke-test register for HUD Handbook 4000.1 Part I (Doing Business
    with FHA) — Supervised Mortgagee general approval requirements.
    Smoke-test scope: ONE obligation only; full Part I expansion happens
    in subsequent Round D drafting batches.
obligations:
  - id: hud-4000-1-i-a-3-supervised-mortgagee-smoke-full
    canonical_id: hud-4000-1-i-a-3-supervised-mortgagee-smoke-full
    section: HUD Handbook 4000.1
    description: |-
      FHA Lenders and Mortgagees: Corporation (FDIC) or the National Credit Union Administration (NCUA) 
      (collectively, “Federal Banking Agencies”). 
      (B) Large Supervised Mortgagee 
      A Large Supervised Mortgagee is a Supervised Mortgagee that has consolidated 
      assets greater than or equal to the threshold for audited financial report…
    type: do
    audit_question: ''
    program_review: ''
    file_review: ''
    judgment: false
    feeds: []
    workflow_phase: ''
    owner_role: ''
    secondary_owner_role: ''
    cadence: ''
    consequence: ''
    tags:
      - regulator-direct
      - section-complete
      - hud
      - 4000-1
      - curated
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 Part I.A.3 — Supervised Mortgagee approval
      source_class: hud-handbook-4000-1
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
      snapshot_id: 3bf33edadcf6461d
      fetched_at: '2026-05-25T14:10:11Z'
      content_hash: sha256:e1c2dc1c75ddb0ee32fe5c2fb7c9bb19f1c93b48a3e26e6d63dc6e7f37c92ec0
      paragraph_quote: |-
        Corporation (FDIC) or the National Credit Union Administration (NCUA) 
        (collectively, “Federal Banking Agencies”). 
        (B) Large Supervised Mortgagee 
        A Large Supervised Mortgagee is a Supervised Mortgagee that has consolidated 
        assets greater than or equal to the threshold for audited financial reporting established 
        by the Federal Banking Agency with oversight of the Mortgagee. Thresholds are 
        codified at 12 CFR §§ 363.1(a), 562.4(b)(2), and 715.4(c), and are subject to change. 
        (C) Small Supervised Mortgagee 
        A Small Supervised Mortgagee is a Supervised Mortgagee that has consolidated 
        assets below the threshold for audited financial reporting established by the Federal 
        Banking Agency with oversight of the Mortgagee. Thresholds are codified at 12 CFR 
        §§ 363.1(a), 562.4(b)(2), and 715.4(c), and are subject to change. 
        A Supervised Mortgagee must meet the general approval requirements set forth below. 
        A Supervised Mortgagee may originate, underwrite, close, endorse, service, purchase, 
        b. Nonsupervised Mortgagee (03/14/2016) 
        A Nonsupervised Mortgagee is a lending institution that has as its principal activity the 
        lending or investing of funds in real estate Mortgages, consumer installment notes or 
        similar advances of credit, the purchase of consumer installment contracts, or from a 
        directly related field. A directly related field is something directly related to the lending 
        or investing of funds in real estate Mortgages, not simply actions relating to real estate in 
        general. 
        A Nonsupervised Mortgagee must meet the general approval requirements set forth 
        below and: 
        • meet FHA’s principal activity requirement by deriving at least 50 percent of its 
        gross revenue from: 
        o its activities in lending or investing of funds in real estate Mortgages; 
        o consumer installment notes or similar advances of credit; 
        o the purchase of consumer installment contracts; or 
        o a directly related field;
      drafter_attestation: Verbatim section from snapshot 3bf33edadcf6461d; boundary human-curated + substring-verified (2026-07-23).

Verbatim regulatory text (1)

Verbatim provisions from HUD Handbook 4000.1 — Doing Business with FHA — Supervised Mortgagee approval requirements — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

HUD Handbook 4000.1

Corporation (FDIC) or the National Credit Union Administration (NCUA) (collectively, “Federal Banking Agencies”). (B) Large Supervised Mortgagee A Large Supervised Mortgagee is a Supervised Mortgagee that has consolidated assets greater than or equal to the threshold for audited financial reporting established by the Federal Banking Agency with oversight of the Mortgagee. Thresholds are codified at 12 CFR §§ 363.1(a), 562.4(b)(2), and 715.4(c), and are subject to change. (C) Small Supervised Mortgagee A Small Supervised Mortgagee is a Supervised Mortgagee that has consolidated assets below the threshold for audited financial reporting established by the Federal Banking Agency with oversight of the Mortgagee. Thresholds are codified at 12 CFR §§ 363.1(a), 562.4(b)(2), and 715.4(c), and are subject to change. A Supervised Mortgagee must meet the general approval requirements set forth below. A Supervised Mortgagee may originate, underwrite, close, endorse, service, purchase, b. Nonsupervised Mortgagee (03/14/2016) A Nonsupervised Mortgagee is a lending institution that has as its principal activity the lending or investing of funds in real estate Mortgages, consumer installment notes or similar advances of credit, the purchase of consumer installment contracts, or from a directly related field. A directly related field is something directly related to the lending or investing of funds in real estate Mortgages, not simply actions relating to real estate in general. A Nonsupervised Mortgagee must meet the general approval requirements set forth below and: • meet FHA’s principal activity requirement by deriving at least 50 percent of its gross revenue from: o its activities in lending or investing of funds in real estate Mortgages; o consumer installment notes or similar advances of credit; o the purchase of consumer installment contracts; or o a directly related field;

Source: HUD Handbook 4000.1 Part I.A.3 — Supervised Mortgagee approval · source URL · snapshot 3bf33edadcf6461d

Operationalizing HUD Handbook 4000.1 — Doing Business with FHA — Supervised Mortgagee approval requirements

This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.

Source of record: https://claudeforcompliance.com/regs/hud-4000-1-i-a-3-supervised-mortgagee-smoke/ · register hud-4000-1-i-a-3-supervised-mortgagee-smoke · Claude for Compliance. Free to read and download; see regulatory updates and methodology.