FHA Single Family Housing Policy Handbook 4000.1, Part III — 3. Programs and Products - Mortgagee Optional Election Assignment (04/29/2024)

FHA Single Family Housing Policy Handbook 4000.1, Part III — 3. Programs and Products - Mortgagee Optional Election Assignment (04/29/2024)

3. Programs and Products - Mortgagee Optional Election Assignment (04/29/2024) Handbook 4000.1 1520 Last Revised: 11/26/2025 (B) Required Documentation The Mortgagee must retain in its Claim File any approved extensions from HUD related to a foreclosure moratorium. Where foreclosure was initiated prior to the effective date of the moratorium, the Mortgagee must retain in its Claim File documentation of any delay to the Reasonable Diligence Time Frame related to a foreclosure moratorium. (C) Hazard or Flood Insurance Settlement The Mortgagee must take no action to initiate or complete foreclosure proceedings after expiration of a disaster-related foreclosure moratorium, if such action will jeopardize the full recovery of a hazard or flood insurance settlement. iii. Monitoring of Repairs to Substantially Damaged Homes (A) Definition A building is considered to be “Substantially Damaged,” as defined in the National Flood Insurance Program (NFIP) regulations, when “damage of any origin is sustained by a structure whereby the cost of restoring the structure to its before damaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred.” (B) Standard The Mortgagee must take appropriate actions to ensure that repairs to Substantially Damaged Properties comply with the federal building elevation standards, including those established by FEMA. The Mortgagee must ensure compliance with any higher applicable building elevation standard adopted by the state or local government.

Source: FHA Single Family Housing Policy Handbook 4000.1, Part III — 3. Programs and Products - Mortgagee Optional Election Assignment (04/29/2024) · source URL · snapshot 8c03836f77f317e1