HUD Handbook 4000.1 III.A.2.e — Lien Status

hud-4000-1-iii-a-2-e

HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.e. See obligation entries for operative requirements and verbatim primary-source citations.

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source:
  type: regulation
  id: hud-4000-1-iii-a-2-e
  authority: HUD Handbook 4000.1 III.A.2.e — Lien Status
  description: |
    HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.e.
    See obligation entries for operative requirements and verbatim
    primary-source citations.
obligations:
  - id: hud-4000-1-iii-a-2-e-preserve-first-lien-status
    canonical_id: hud-4000-1-iii-a-2-e-preserve-first-lien-status
    section: HUD Handbook 4000.1 III.A.2.e — Lien Status
    description: |
      [LENDER] must preserve the first lien status of the FHA-insured
      Mortgage. HUD will not pay a claim on a Mortgage that is not in first
      priority position.
    type: do
    audit_question: For every FHA-insured Mortgage in [LENDER]'s servicing portfolio, can [LENDER] evidence preservation of first lien status (no intervening senior lien, no inadvertent subordination, title monitoring per [LENDER]'s P&P)?
    program_review: Do the P&Ps facilitate preservation of first-lien status (title monitoring, no inadvertent subordination) — given HUD will not pay a claim on a non-first-priority Mortgage?
    file_review: Review the title-monitoring control and a sample; the compliance person judges whether first-lien status is adequately preserved (no intervening senior lien or inadvertent subordination).
    judgment: true
    feeds: []
    workflow_phase: servicing
    owner_role: compliance_officer
    secondary_owner_role: default_servicing_analyst
    cadence: ongoing
    consequence: Claim ineligibility — HUD will not pay a claim on a Mortgage that is not in first priority position.
    tags:
      - round-b
      - regulator-direct
      - hud-handbook-4000-1
      - fha
      - servicing
      - lien-status
      - first-lien
      - claim-eligibility
      - promoted
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 III.A.2.e — Lien Status
      source_class: hud-handbook-4000-1
      source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
      snapshot_id: 8c03836f77f317e1
      fetched_at: '2026-05-23T00:28:40Z'
      content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
      paragraph_quote: 'The Mortgagee must preserve the first lien status of the FHA-insured Mortgage. HUD will '
      drafter_attestation: Copied verbatim from HUD Handbook 4000.1 snapshot 8c03836f77f317e1 (III.A.2.e) at 2026-05-23.
    promoted_at: '2026-05-23T00:42:26+00:00'
    promoted_from: hud-4000-1-iii-a-2-e-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-23T00:42:26+00:00'
    candidate_path: obligations\_remediation\_round_b_drafts\hud-4000-1-iii-a-2-e-roundb-v1.yaml
    candidates_promoted: 1
    candidates_skipped_existing: 0

Verbatim regulatory text (1)

Verbatim provisions from HUD Handbook 4000.1 III.A.2.e — Lien Status — 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.e — Lien Status

The Mortgagee must preserve the first lien status of the FHA-insured Mortgage. HUD will

Source: HUD Handbook 4000.1 III.A.2.e — Lien Status · source URL · snapshot 8c03836f77f317e1