HUD Handbook 4000.1 II.A.1.a — Applications and Disclosures

hud-4000-1-ii-a-1-a

HUD Handbook 4000.1 Part II.A.1.a (Applications and Disclosures) for Title II Insured Housing Programs Forward Mortgages. Covers URLA intake, federal/state disclosure obligation, mortgage application package contents, maximum document age, appraisal validity, and handling of third-party documents.

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source:
  type: regulation
  id: hud-4000-1-ii-a-1-a
  authority: HUD Handbook 4000.1 II.A.1.a — Applications and Disclosures
  description: |
    HUD Handbook 4000.1 Part II.A.1.a (Applications and Disclosures) for
    Title II Insured Housing Programs Forward Mortgages. Covers URLA
    intake, federal/state disclosure obligation, mortgage application
    package contents, maximum document age, appraisal validity, and
    handling of third-party documents.
obligations:
  - id: hud-4000-1-ii-a-1-a-urla-and-disclosures
    canonical_id: hud-4000-1-ii-a-1-a-urla-and-disclosures
    section: HUD Handbook 4000.1 II.A.1.a — Applications and Disclosures
    description: |
      [LENDER] must obtain a completed Fannie Mae Form 1003 / Freddie Mac
      Form 65 Uniform Residential Loan Application (URLA) from the
      Borrower and provide all required federal and state disclosures in
      order to begin the FHA origination process, using the most recent
      version of all forms as of the date of completion.
    type: do
    audit_question: For every FHA-insured Mortgage [LENDER] originates, can [LENDER] evidence (a) a completed URLA on the most recent form version and (b) timely delivery of all required federal and state disclosures at the start of the origination process?
    program_review: Do the P&Ps ensure every FHA origination begins with a completed URLA (Form 1003/65) on the most recent form version and timely delivery of all required federal and state disclosures?
    file_review: Pull originated files; confirm a completed current-version URLA is present and the required federal/state disclosures were delivered timely at the start of origination.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: loan_officer
    secondary_owner_role: compliance_officer
    cadence: per-loan
    consequence: Originating an FHA-insured Mortgage without a complete URLA or required disclosures puts FHA insurability at risk and may trigger TRID/ECOA/RESPA violations layered on top of HUD finding.
    tags:
      - round-d
      - regulator-direct
      - fha
      - hud-4000-1
      - origination
      - disclosure
      - urla
      - promoted
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 II.A.1.a — Applications and Disclosures
      source_class: hud-handbook-4000-1
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
      snapshot_id: 3bf33edadcf6461d
      fetched_at: '2026-05-25T14:10:11Z'
      content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
      paragraph_quote: The Mortgagee must obtain a completed Fannie Mae Form 1003/Freddie Mac Form 65,
      drafter_attestation: |
        Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1
        Update 17, II.A.1.a, Last Revised 06/27/2025).
    promoted_at: '2026-05-25T17:33:46+00:00'
    promoted_from: hud-4000-1-ii-a-1-a-roundd-v1.yaml
  - id: hud-4000-1-ii-a-1-a-maintain-mortgage-file
    canonical_id: hud-4000-1-ii-a-1-a-maintain-mortgage-file
    section: HUD Handbook 4000.1 II.A.1.a.i(A) — Contents of the Mortgage Application Package
    description: |
      [LENDER] must maintain all information and documentation that is
      relevant to its FHA approval decision in the mortgage file,
      including all documentation required by HUD Handbook 4000.1 and any
      incidental information related to those requirements.
    type: do
    audit_question: For every FHA-insured Mortgage, can [LENDER] produce a mortgage file containing all information and documentation relevant to the approval decision, including incidental documentation supporting items required by Handbook 4000.1?
    program_review: Do the P&Ps ensure the mortgage file retains all information and documentation relevant to the FHA approval decision, including incidental documentation supporting Handbook-required items?
    file_review: Reconcile a sample mortgage file against the approval decision; confirm all relevant and incidental supporting documentation is present.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: loan_officer
    secondary_owner_role: compliance_officer
    cadence: per-loan
    consequence: Inadequate mortgage file documentation supports HUD findings on post-endorsement review and may result in indemnification demands.
    tags:
      - round-d
      - regulator-direct
      - fha
      - hud-4000-1
      - file-maintenance
      - origination
      - promoted
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 II.A.1.a.i(A) — Contents of the Mortgage Application Package
      source_class: hud-handbook-4000-1
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
      snapshot_id: 3bf33edadcf6461d
      fetched_at: '2026-05-25T14:10:11Z'
      content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
      paragraph_quote: The Mortgagee must maintain all information and documentation that is relevant to its
      drafter_attestation: |
        Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1
        Update 17, II.A.1.a.i).
    promoted_at: '2026-05-25T17:33:46+00:00'
    promoted_from: hud-4000-1-ii-a-1-a-roundd-v1.yaml
  - id: hud-4000-1-ii-a-1-a-120-day-document-age
    canonical_id: hud-4000-1-ii-a-1-a-120-day-document-age
    section: HUD Handbook 4000.1 II.A.1.a.i(A)(1)(a) — Maximum Age of Mortgage Documents
    description: |
      Documents used by [LENDER] in the origination and underwriting of an
      FHA-insured Mortgage may not be more than 120 Days old at the
      Disbursement Date, except for appraisals (which are subject to
      separate validity period requirements) and documents whose validity
      for underwriting purposes is not affected by the passage of time
      (such as divorce decrees or Tax Returns).
    type: do
    audit_question: Can [LENDER] evidence that every origination/underwriting document in the FHA mortgage file was less than 120 Days old at the Disbursement Date (excluding appraisals and time-invariant documents like divorce decrees and Tax Returns)?
    program_review: Do the P&Ps ensure origination/underwriting documents are no more than 120 Days old at the Disbursement Date, while accounting for the carve-outs (appraisals under their own validity rule; time-invariant documents like divorce decrees and Tax Returns)?
    file_review: Pull closed files; confirm each origination/underwriting document was under 120 Days old at Disbursement, excluding appraisals and time-invariant documents.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: underwriter
    secondary_owner_role: closer
    cadence: per-loan
    consequence: Stale documentation at Disbursement is a common HUD post-endorsement finding and may compromise FHA insurability.
    tags:
      - round-d
      - regulator-direct
      - fha
      - hud-4000-1
      - document-age
      - underwriting
      - promoted
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 II.A.1.a.i(A)(1)(a) — General Document Age
      source_class: hud-handbook-4000-1
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
      snapshot_id: 3bf33edadcf6461d
      fetched_at: '2026-05-25T14:10:11Z'
      content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
      paragraph_quote: Documents used in the origination and underwriting of a Mortgage may not be
      drafter_attestation: |
        Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1
        Update 17, II.A.1.a.i(A)(1)(a)).
    promoted_at: '2026-05-25T17:33:46+00:00'
    promoted_from: hud-4000-1-ii-a-1-a-roundd-v1.yaml
  - id: hud-4000-1-ii-a-1-a-appraisal-180-day-validity
    canonical_id: hud-4000-1-ii-a-1-a-appraisal-180-day-validity
    section: HUD Handbook 4000.1 II.A.1.a.i(A)(1)(b)(i) — Initial Appraisal Validity
    description: |
      The initial appraisal validity period for an FHA-insured Mortgage is
      180 Days from the effective date of the appraisal report. [LENDER]
      must ensure the appraisal supporting the Mortgage is within this
      validity window (or obtain a compliant appraisal update under HUD
      requirements).
    type: do
    audit_question: For every FHA-insured Mortgage closed by [LENDER], can [LENDER] evidence that the appraisal report supporting the file was within 180 Days of its effective date at Disbursement (or that a compliant appraisal update extended the validity period)?
    program_review: Do the P&Ps ensure the appraisal supporting the Mortgage is within the 180-Day validity window from its effective date (or extended by a compliant appraisal update) at Disbursement?
    file_review: Pull closed files; confirm the appraisal effective date is within 180 Days of Disbursement, or that a compliant appraisal update extended validity.
    judgment: false
    feeds:
      - hud-4000-1-ii-a-3-underwrite-appraisal
    workflow_phase: origination
    owner_role: underwriter
    secondary_owner_role: closer
    cadence: per-loan
    consequence: Closing on an expired appraisal without a compliant update is a HUD finding and may result in claim curtailment.
    tags:
      - round-d
      - regulator-direct
      - fha
      - hud-4000-1
      - appraisal
      - underwriting
      - promoted
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 II.A.1.a.i(A)(1)(b)(i) — Initial Appraisal Validity
      source_class: hud-handbook-4000-1
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
      snapshot_id: 3bf33edadcf6461d
      fetched_at: '2026-05-25T14:10:11Z'
      content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
      paragraph_quote: The initial appraisal validity period is 180 Days from the effective date of
      drafter_attestation: |
        Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1
        Update 17, II.A.1.a.i(A)(1)(b)(i)).
    promoted_at: '2026-05-25T17:33:47+00:00'
    promoted_from: hud-4000-1-ii-a-1-a-roundd-v1.yaml
  - id: hud-4000-1-ii-a-1-a-no-interested-party-documents
    canonical_id: hud-4000-1-ii-a-1-a-no-interested-party-documents
    section: HUD Handbook 4000.1 II.A.1.a.i(A)(2) — Handling of Documents
    description: |
      [LENDER] must not accept or use documents relating to the employment,
      income, assets, or credit of Borrowers that have been handled by or
      transmitted from or through unknown parties or Interested Parties.
      [LENDER] also must not accept or use any Third Party Verifications
      (TPV) that have been handled by or transmitted from or through
      unknown parties, Interested Parties, or the Borrower.
    type: dont
    audit_question: Can [LENDER] evidence (in its origination procedures and per-loan documentation) that no employment, income, asset, or credit document — and no TPV — used in any FHA-insured Mortgage was handled by or transmitted through an unknown party, Interested Party, or (for TPVs) the Borrower?
    program_review: Do the P&Ps facilitate document-handling controls so that no employment/income/asset/credit document — and no Third Party Verification — is accepted when handled by or transmitted through an unknown party, Interested Party, or (for TPVs) the Borrower?
    file_review: Review document transmittal paths in a sample; the compliance person judges whether any credit/income/asset/employment document or TPV passed through an unknown party, Interested Party, or the Borrower.
    judgment: true
    feeds: []
    workflow_phase: origination
    owner_role: loan_officer
    secondary_owner_role: compliance_officer
    cadence: per-loan
    consequence: Use of Interested-Party-touched documents is a per-se HUD finding and is a common indicator of origination fraud.
    tags:
      - round-d
      - regulator-direct
      - fha
      - hud-4000-1
      - origination
      - interested-party
      - document-integrity
      - promoted
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 II.A.1.a.i(A)(2) — Handling of Documents
      source_class: hud-handbook-4000-1
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
      snapshot_id: 3bf33edadcf6461d
      fetched_at: '2026-05-25T14:10:11Z'
      content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
      paragraph_quote: Mortgagees must not accept or use documents relating to the employment,
      drafter_attestation: |
        Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1
        Update 17, II.A.1.a.i(A)(2)).
    promoted_at: '2026-05-25T17:33:47+00:00'
    promoted_from: hud-4000-1-ii-a-1-a-roundd-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-25T17:33:47+00:00'
    candidate_path: obligations\_remediation\round-d-investor-guides\hud-4000-1-ii-a-1-a-roundd-v1.yaml
    candidates_promoted: 5
    candidates_skipped_existing: 0

Verbatim regulatory text (5)

Verbatim provisions from HUD Handbook 4000.1 II.A.1.a — Applications and Disclosures — 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 II.A.1.a — Applications and Disclosures

The Mortgagee must obtain a completed Fannie Mae Form 1003/Freddie Mac Form 65,

Source: HUD Handbook 4000.1 II.A.1.a — Applications and Disclosures · source URL · snapshot 3bf33edadcf6461d

HUD Handbook 4000.1 II.A.1.a.i(A) — Contents of the Mortgage Application Package

The Mortgagee must maintain all information and documentation that is relevant to its

Source: HUD Handbook 4000.1 II.A.1.a.i(A) — Contents of the Mortgage Application Package · source URL · snapshot 3bf33edadcf6461d

HUD Handbook 4000.1 II.A.1.a.i(A)(1)(a) — Maximum Age of Mortgage Documents

Documents used in the origination and underwriting of a Mortgage may not be

Source: HUD Handbook 4000.1 II.A.1.a.i(A)(1)(a) — General Document Age · source URL · snapshot 3bf33edadcf6461d

HUD Handbook 4000.1 II.A.1.a.i(A)(1)(b)(i) — Initial Appraisal Validity

The initial appraisal validity period is 180 Days from the effective date of

Source: HUD Handbook 4000.1 II.A.1.a.i(A)(1)(b)(i) — Initial Appraisal Validity · source URL · snapshot 3bf33edadcf6461d

HUD Handbook 4000.1 II.A.1.a.i(A)(2) — Handling of Documents

Mortgagees must not accept or use documents relating to the employment,

Source: HUD Handbook 4000.1 II.A.1.a.i(A)(2) — Handling of Documents · source URL · snapshot 3bf33edadcf6461d