FHA Single Family Housing Policy Handbook 4000.1, Part V — f. Ineligible Participants (05/09/2022)
FHA Single Family Housing Policy Handbook 4000.1, Part V — f. Ineligible Participants (05/09/2022).
Verbatim regulatory text
Verbatim provisions from FHA Single Family Housing Policy Handbook 4000.1, Part V — f. Ineligible Participants (05/09/2022) — 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 V — f. Ineligible Participants (05/09/2022)
f. Ineligible Participants (05/09/2022) i. Origination and Underwriting Reviews (A) Standard The Mortgagee must verify that none of the participants in the mortgage transactions reviewed were debarred, suspended, under an LDP for the FHA program and jurisdiction, or otherwise ineligible to participate in an FHA transaction. This includes participants in an assumption transaction. Participants in a mortgage transaction may include, but are not limited to, the: • seller (excluding the seller of a Principal Residence) • listing and selling real estate agent • loan originator V. QUALITY CONTROL, OVERSIGHT, AND COMPLIANCE A. Quality Control of Lenders and Mortgagees 3. Loan Level Quality Control Program Requirements Handbook 4000.1 1715 Last Revised: 11/26/2025 • Dealer • retailer involved in a Manufactured Home Loan • loan processor • underwriter • Appraiser • 203(k) Consultant • Closing Agent • title company The Mortgagee must verify participant eligibility using the SAM Excluded Parties List, the LDP List, and NMLS, as applicable. (B) Required Documentation The Mortgagee must maintain documentation that supports each participant’s eligibility. ii. Servicing Reviews (A) Standard The Mortgagee must verify that none of the participants in the servicing transactions reviewed were debarred, suspended, under an LDP for the FHA program and jurisdiction, or otherwise ineligible to participate in an FHA transaction. This includes participants in a loss mitigation transaction. Participants in a servicing transaction may include, but are not limited to: • Borrowers applying for a Loss Mitigation Option • underwriters • real estate brokers • Closing Agent • title company • employees of the Mortgagee, or Affiliates participating in HUD programs for or on behalf of the Mortgagee, who have influence or control over the evaluation, approval, or outcome of the servicing loss mitigation, or claims transaction. The Mortgagee must verify participant eligibility using the SAM Excluded Parties List and the LDP List, as applicable. (B) Required Documentation The Mortgagee must maintain copies of each participant’s eligibility verification printouts. V. QUALITY CONTROL, OVERSIGHT, AND COMPLIANCE A. Quality Control of Lenders and Mortgagees 4. Data Integrity Handbook 4000.1 1716 Last Revised: 11/26/2025 4. Data Integrity