HUD Handbook 4000.1 Part II.A.1.b — Title Commitment + Appraisal Ordering

hud-4000-1-ii-a-1-appraisal-ordering

HUD Handbook 4000.1 Part II.A.1.b subsections (5) and (6) cover [LENDER]'s duties to order title commitments and appraisals for each FHA case number. The no-appraisal-reuse rule is operationally important: even appraisals less than 180 days old cannot be reused across case numbers.

Get this register: .xlsx .csv More bundles →

source:
  type: regulation
  id: hud-4000-1-ii-a-1-appraisal-ordering
  authority: HUD Handbook 4000.1 Part II.A.1.b — Title Commitment + Appraisal Ordering
  description: |
    HUD Handbook 4000.1 Part II.A.1.b subsections (5) and (6) cover
    [LENDER]'s duties to order title commitments and appraisals for each
    FHA case number. The no-appraisal-reuse rule is operationally
    important: even appraisals less than 180 days old cannot be reused
    across case numbers.
obligations:
  - id: hud-4000-1-ii-a-1-order-title-commitment
    canonical_id: hud-4000-1-ii-a-1-order-title-commitment
    section: HUD Handbook 4000.1 II.A.1.b(5) — Order title commitment
    description: |
      [LENDER] (Mortgagee) shall order a title commitment for each FHA
      case to ensure the Property will be properly titled and the
      Mortgage secured in accordance with FHA requirements. The title
      commitment is a foundational origination control supporting FHA
      insurance eligibility.
    type: do
    audit_question: For every FHA case originated by [LENDER], can [LENDER] evidence a title commitment was ordered before closing to confirm Property titling and Mortgage security per FHA requirements?
    program_review: Do the P&Ps ensure a title commitment is ordered on every FHA case before closing to confirm proper titling and first-lien security per FHA requirements?
    file_review: Pull FHA case files; confirm a title commitment was ordered prior to closing.
    judgment: false
    feeds:
      - hud-4000-1-ii-a-6-title-objections-cleared-first-lien
    workflow_phase: loan_origination
    owner_role: loan_processor
    secondary_owner_role: closing_specialist
    cadence: per-fha-case
    consequence: Missing title commitment is a foundational FHA QC defect; can void insurance eligibility.
    tags:
      - round-d
      - regulator-direct
      - fha
      - hud-4000-1
      - title-commitment
      - origination
      - promoted
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 II.A.1.b(5) — Ordering Title Commitments
      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:e1c2dc1c75ddb0ee32fe5c2fb7c9bb19f1c93b48a3e26e6d63dc6e7f37c92ec0
      paragraph_quote: |
        The Mortgagee must order a title commitment to ensure the Property will be properly titled and the Mortgage secured in accordance with FHA requirements.
      drafter_attestation: |
        Copied verbatim from snapshot 3bf33edadcf6461d. II.A.1.b(5) order-
        title-commitment operative requirement.
    promoted_at: '2026-05-25T18:34:06+00:00'
    promoted_from: hud-4000-1-ii-a-1-appraisal-ordering-roundd-v1.yaml
  - id: hud-4000-1-ii-a-1-order-new-appraisal-no-reuse
    canonical_id: hud-4000-1-ii-a-1-order-new-appraisal-no-reuse
    section: HUD Handbook 4000.1 II.A.1.b(6) — Order new appraisal per case number; no reuse
    description: |
      [LENDER] (Mortgagee) shall order a NEW appraisal for each FHA case
      number assignment and may NOT reuse an appraisal that was performed
      under another active or endorsed case number — even if the prior
      appraisal is not yet more than 180 days old. This bright-line rule
      is operationally critical: case-number-bound appraisals cannot be
      cross-applied between cases.
    type: do
    audit_question: For every FHA case number [LENDER] assigned, can [LENDER] evidence that a fresh appraisal was ordered for that case number, with no reuse of a prior-case-number appraisal regardless of the prior appraisal's age?
    program_review: Do the P&Ps enforce the bright-line rule that a new appraisal is ordered for each case-number assignment, with NO reuse of an appraisal performed under another active or endorsed case number regardless of the prior appraisal's age?
    file_review: Pull case files; confirm the appraisal is bound to that case number and no prior-case-number appraisal was cross-applied.
    judgment: false
    feeds: []
    workflow_phase: loan_origination
    owner_role: loan_processor
    secondary_owner_role: underwriting_manager
    cadence: per-fha-case
    consequence: Appraisal reuse across case numbers is a known FHA QC defect; void appraisal can trigger indemnification.
    tags:
      - round-d
      - regulator-direct
      - fha
      - hud-4000-1
      - appraisal-ordering
      - case-number-binding
      - no-reuse
      - promoted
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 II.A.1.b(6) — Ordering Appraisals
      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:e1c2dc1c75ddb0ee32fe5c2fb7c9bb19f1c93b48a3e26e6d63dc6e7f37c92ec0
      paragraph_quote: |
        The Mortgagee must order a new appraisal for each case number assignment and may not reuse an appraisal that was performed under another active or endorsed case number, even if the prior appraisal is not yet more than 180 Days old.
      drafter_attestation: |
        Copied verbatim from snapshot 3bf33edadcf6461d. II.A.1.b(6) order-
        new-appraisal-per-case-no-reuse operative requirement.
    promoted_at: '2026-05-25T18:34:06+00:00'
    promoted_from: hud-4000-1-ii-a-1-appraisal-ordering-roundd-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-25T18:34:06+00:00'
    candidate_path: obligations\_remediation\round-d-investor-guides\hud-4000-1-ii-a-1-appraisal-ordering-roundd-v1.yaml
    candidates_promoted: 2
    candidates_skipped_existing: 0

Verbatim regulatory text (2)

Verbatim provisions from HUD Handbook 4000.1 Part II.A.1.b — Title Commitment + Appraisal Ordering — 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.b(5) — Order title commitment

The Mortgagee must order a title commitment to ensure the Property will be properly titled and the Mortgage secured in accordance with FHA requirements.

Source: HUD Handbook 4000.1 II.A.1.b(5) — Ordering Title Commitments · source URL · snapshot 3bf33edadcf6461d

HUD Handbook 4000.1 II.A.1.b(6) — Order new appraisal per case number; no reuse

The Mortgagee must order a new appraisal for each case number assignment and may not reuse an appraisal that was performed under another active or endorsed case number, even if the prior appraisal is not yet more than 180 Days old.

Source: HUD Handbook 4000.1 II.A.1.b(6) — Ordering Appraisals · source URL · snapshot 3bf33edadcf6461d