HUD Mortgagee Letter 2024-14

hud-ml-2024-14

HUD Mortgagee Letter 2024-14. See obligation entries for operative requirements and verbatim primary-source citations.

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source:
  type: regulation
  id: hud-ml-2024-14
  authority: HUD Mortgagee Letter 2024-14
  description: |
    HUD Mortgagee Letter 2024-14. See obligation entries for operative
    requirements and verbatim primary-source citations.
obligations:
  - id: hud-ml-2024-14-tpo-involvement-tier-1
    canonical_id: hud-ml-2024-14-tpo-involvement-tier-1
    section: 'HUD ML 2024-14 — FHA Defect Taxonomy IV.B (Fraud or Misrepresentation): TPO-employee involvement triggers "knew or should have known"'
    description: |
      For loan-level FHA quality-assurance reviews, [LENDER] is treated by FHA
      as having "knew or should have known" of fraud or material
      misrepresentation in the loan file — and is therefore exposed to Tier 1
      severity classification and life-of-loan indemnification — whenever (i)
      an employee of [LENDER] or its sponsored Third-Party Originator was
      involved in the fraud or material misrepresentation, and/or (ii) red
      flags in the loan file should have been questioned by the underwriting
      Mortgagee.
    type: monitor
    audit_question: Can [LENDER] evidence a TPO-oversight program that identifies sponsored-TPO-employee involvement in any fraud or material misrepresentation in the FHA loan file, knowing that such involvement is now a Tier 1 'knew or should have known' condition exposing [LENDER] to life-of-loan indemnification?
    program_review: Do the P&Ps facilitate a TPO-oversight program that detects sponsored-TPO-employee involvement in fraud/material misrepresentation and unquestioned loan-file red flags — given these now trigger Tier 1 'knew or should have known' classification and life-of-loan indemnification?
    file_review: Review TPO-oversight records and a loan-file sample; the compliance person judges whether sponsored-TPO-employee involvement or unquestioned red flags exist that would meet the Tier 1 condition.
    judgment: true
    feeds: []
    workflow_phase: post_closing
    owner_role: compliance_officer
    secondary_owner_role: default_servicing_analyst
    cadence: continuous
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - hud-ml
      - fha
      - defect-taxonomy
      - tpo-oversight
      - fraud
      - indemnification
      - promoted
    primary_source:
      tier: 1
      authority: HUD ML 2024-14 — Handbook 4000.1 Appendix 8.0 IV.B
      source_class: hud-ml-pdf
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2024-14hsgml.pdf
      snapshot_id: c6f55a5b11cb15de
      fetched_at: '2026-05-22T19:54:46Z'
      content_hash: sha256:b7169c9e186e36279802532f2f9927388b223d788aa4cb2417060540fbfd7b80
      paragraph_quote: |-
        B) FHA determines if the Mortgagee knew or should have known based on 
        whether: 
        − an employee of the Mortgagee or sponsored Third-Party Originator 
        was involved and/or
      drafter_attestation: |
        Copied verbatim from snapshot c6f55a5b11cb15de (content.txt) at
        2026-05-22T20:10Z. Substring is the updated Defect Taxonomy IV.B
        determinative-conditions list as inserted by ML 2024-14, including the
        TPO-employee-involvement bullet that now triggers Tier 1 severity.
    promoted_at: '2026-05-22T20:17:33+00:00'
    promoted_from: hud-ml-2024-14-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-22T20:17:33+00:00'
    candidate_path: obligations\_remediation\_round_b_drafts\hud-ml-2024-14-roundb-v1.yaml
    candidates_promoted: 1
    candidates_skipped_existing: 0

Verbatim regulatory text (1)

Verbatim provisions from HUD Mortgagee Letter 2024-14 — 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 ML 2024-14 — FHA Defect Taxonomy IV.B (Fraud or Misrepresentation): TPO-employee involvement triggers "knew or should have known"

B) FHA determines if the Mortgagee knew or should have known based on whether: − an employee of the Mortgagee or sponsored Third-Party Originator was involved and/or

Source: HUD ML 2024-14 — Handbook 4000.1 Appendix 8.0 IV.B · source URL · snapshot c6f55a5b11cb15de