HUD Handbook 4000.1 III.A.2.a — Mortgages in Delinquency or Default
HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.a. See obligation entries for operative requirements and verbatim primary-source citations.
Verbatim regulatory text
Verbatim provisions from HUD Handbook 4000.1 III.A.2.a — Mortgages in Delinquency or Default — 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 III.A.2.a
The Mortgagee must ensure FHA-insured Mortgages in Delinquency or Default are serviced in accordance with FHA requirements and applicable laws. For the purpose of determining the date of Default and timelines related to Default, HUD considers all months to have 30 Days. b. Reporting to Consumer Reporting Agencies and the IRS (03/31/2022) The Mortgagee is responsible for: • complying with applicable law and federal regulations relating to reporting to consumer reporting agencies; and • ensuring that all reported information is accurate. The Mortgagee is also responsible for any required IRS reporting regarding acquisition of secured Property or cancellation of mortgage debt, in accordance with the Internal Revenue Code (IRC). c. Late Charges (10/01/2025) Late Charges are charges assessed if a Mortgage Payment is received more than 15 Days after the due date. The Mortgagee may consider a Borrower’s Mortgage Payment late if the payment is received by the Mortgagee more than 15 Days after the due date, except for payments received from Borrowers in accordance with a Trial Payment Plan Agreement. The Mortgagee may assess a late charge on the 17th Day of the month. For Mortgages assigned a case number on or after March 14, 2016, the Mortgagee may assess a Late Charge, not to exceed 4 percent of the overdue payment of P&I and in accordance with applicable state and federal laws. For Mortgages assigned a case number before March 14, 2016, the Mortgagee may assess a Late Charge calculated based on overdue PITI if permitted under the terms of the mortgage Note and under applicable state and federal laws. (A) Notifying the Borrower of the Late Charge Before collecting the Late Charge or returning a Mortgage Payment to the Borrower for failing to pay the Late Charge, the Mortgagee must provide the Borrower with an advance written notice of the charge.
Operationalizing HUD Handbook 4000.1 III.A.2.a — Mortgages in Delinquency or Default
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-iii-a-2-a/
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