FHA Single Family Housing Policy Handbook 4000.1, III. SERVICING AND LOSS MITIGATION > A. Title II Insured Housing Programs Forward Mortgages > 1. Servicing of FHA-Insured Mortgages — f. Servicing Fees and Charges

hud-4000-1-iii-f-servicing-fees-and-charges

HUD effective date: 07/01/2025 · section III.A.1 · Handbook 4000.1

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Recently changed. 1 section here was revised on 2025-07-01: f. Servicing Fees and Charges . A model trained before then holds the old wording.

FHA Single Family Housing Policy Handbook 4000.1, Part III — f. Servicing Fees and Charges (07/01/2025).

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Verbatim provisions from FHA Single Family Housing Policy Handbook 4000.1, III. SERVICING AND LOSS MITIGATION > A. Title II Insured Housing Programs Forward Mortgages > 1. Servicing of FHA-Insured Mortgages — f. Servicing Fees and Charges — 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.

FHA Single Family Housing Policy Handbook 4000.1, Part III — f. Servicing Fees and Charges (07/01/2025)

Effective 2025-07-01 · publisher's stamp for this provision

f. Servicing Fees and Charges (07/01/2025) i. Definition Allowable Fees and Charges are those costs associated with the servicing of the Mortgage that are permitted to be charged to the Borrower. Prohibited Fees and Charges are those costs associated with the servicing of the Mortgage that may not be charged to the Borrower. ii. Standard (A) Reasonable and Customary Fees and Charges The Mortgagee may collect certain fees and charges from the Borrower after the Mortgage is insured and as authorized by HUD below. All fees must be: • reasonable and customary for the local jurisdiction; • based on actual cost of the work performed or actual out-of-pocket expenses and not a percentage of either the face amount or the unpaid principal balance of the Mortgage; and • within the maximum amount allowed by HUD, up to the amount listed in Appendix 3.0 – Post-endorsement Fees and Charges by Location. (B) Prohibited Fees and Charges The Mortgagee must not charge the Borrower for the following services: • costs of telephone calls, certified mail, arranging and conducting the interview, or other activities that are normally considered a part of a prudent Mortgagee’s servicing activity; • preparing and providing evidence of Payoff, Reconveyance, or termination of the Mortgage; • providing information essential to the Payoff; • recording the Payoff of the Mortgage in states where recordation is the responsibility of the Mortgagee; • fees for services performed by attorneys or trustees who are salaried members of the Mortgagee’s staff; or • Mortgagee’s use of an independent contractor, such as services related to the interview or a tax service, to furnish tax data and information necessary to pay property taxes or make the payments on behalf of the Mortgagee. iii. Required Documentation The Mortgagee must include in the Servicing File: • documentation of the amount of any fees and charges paid or payable by the Borrower; and • documentation supporting the actual cost of any work performed or out-of-pocket expenses.

Source: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12) · source URL · snapshot e1bca3432cf19e09

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Source of record: https://claudeforcompliance.com/regs/hud-4000-1-iii-f-servicing-fees-and-charges/ · register hud-4000-1-iii-f-servicing-fees-and-charges · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.