HUD Mortgagee Letter 2024-20

hud-ml-2024-20

HUD Mortgagee Letter 2024-20. See obligation entries for operative requirements and verbatim primary-source citations.

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source:
  type: regulation
  id: hud-ml-2024-20
  authority: HUD Mortgagee Letter 2024-20
  description: |
    HUD Mortgagee Letter 2024-20. See obligation entries for operative
    requirements and verbatim primary-source citations.
obligations:
  - id: hud-ml-2024-20-new-construction-sfha-eligibility
    canonical_id: hud-ml-2024-20-new-construction-sfha-eligibility
    section: HUD ML 2024-20 — Eligibility for New Construction in SFHAs (II.A.1.b.iv(A)(1)(b))
    description: |
      For FHA-insured New Construction Site Built Housing where any portion of
      the dwelling and related Structures or equipment essential to the
      Property Value is located in an SFHA, [LENDER] must ensure the Property
      is ineligible for FHA mortgage insurance unless [LENDER] either (a)
      obtains a FEMA-issued final LOMA or LOMR removing the Property from the
      SFHA, or (b) obtains a FEMA NFIP Elevation Certificate (FEMA Form
      FF-206-FY-22-152) documenting the lowest floor's elevation under the
      applicable standard (100-year flood elevation for building permits
      before January 1, 2025; at least two feet above BFE for building permits
      on or after January 1, 2025).
    type: do
    audit_question: For every FHA-insured New Construction Site Built loan with any portion of the dwelling or related Structures located in an SFHA, can [LENDER] evidence either (a) a FEMA-issued final LOMA/LOMR removing the Property from the SFHA, or (b) a FEMA NFIP Elevation Certificate documenting the lowest floor's elevation under the standard applicable to the building permit submission date (100-year flood elevation pre-1/1/2025 or BFE+2ft on/after 1/1/2025)?
    program_review: Does the program account for the New-Construction-in-SFHA ineligibility condition — requiring either a FEMA final LOMA/LOMR removing the Property from the SFHA, or a FEMA NFIP Elevation Certificate meeting the standard for the building-permit date (100-year flood elevation pre-1/1/2025; BFE+2ft on/after 1/1/2025)?
    file_review: Spot-check New-Construction-Site-Built files with any portion in an SFHA; confirm either a LOMA/LOMR or a conforming Elevation Certificate under the date-applicable standard.
    judgment: false
    feeds:
      - hud-ml-2024-20-flood-insurance-sfha
    workflow_phase: underwriting
    owner_role: compliance_officer
    secondary_owner_role: default_servicing_analyst
    cadence: per-loan
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - hud-ml
      - fha
      - underwriting
      - flood-hazard
      - sfha
      - ffrms
      - new-construction
      - promoted
    primary_source:
      tier: 1
      authority: HUD ML 2024-20 — II.A.1.b.iv(A)(1)(b)
      source_class: hud-ml-pdf
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2024-20hsgml.pdf
      snapshot_id: 6179d83f7133a5ce
      fetched_at: '2026-05-22T19:54:53Z'
      content_hash: sha256:489e7e95daf94f137e1c87e02f9c52cf279b70f36f48ba5f5f908a138656d798
      paragraph_quote: |-
        If any portion of the dwelling and related Structures or equipment essential 
        to the Property Value is located in an SFHA, the Property is not eligible for 
        FHA mortgage insurance, unless the Mortgagee:
      drafter_attestation: |
        Copied verbatim from snapshot 6179d83f7133a5ce (content.txt) at
        2026-05-22T20:18Z. Substring is the SFHA-ineligibility-unless headline
        of New Construction Site Built Housing eligibility section, with the
        LOMA/LOMR vs. Elevation Certificate sub-options paraphrased in
        description.
    promoted_at: '2026-05-22T20:17:34+00:00'
    promoted_from: hud-ml-2024-20-roundb-v1.yaml
  - id: hud-ml-2024-20-flood-insurance-sfha
    canonical_id: hud-ml-2024-20-flood-insurance-sfha
    section: HUD ML 2024-20 — Flood Insurance Required When Property Remains in SFHA
    description: |
      Where [LENDER] obtains a FEMA NFIP Elevation Certificate (FEMA Form
      FF-206-FY-22-152) that documents the Property remains located within
      an SFHA, [LENDER] must ensure that Flood Insurance is obtained for the
      Property.
    type: do
    audit_question: For every FHA-insured loan where the FEMA NFIP Elevation Certificate documents that the Property remains within an SFHA, can [LENDER] evidence Flood Insurance coverage in force at closing and through endorsement?
    program_review: Do the P&Ps ensure Flood Insurance is obtained when a FEMA NFIP Elevation Certificate documents the Property remains within an SFHA?
    file_review: Spot-check files where the Elevation Certificate shows the Property remains in an SFHA; confirm Flood Insurance in force at closing and through endorsement.
    judgment: false
    feeds: []
    workflow_phase: underwriting
    owner_role: compliance_officer
    secondary_owner_role: default_servicing_analyst
    cadence: per-loan
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - hud-ml
      - fha
      - underwriting
      - flood-insurance
      - sfha
      - promoted
    primary_source:
      tier: 1
      authority: HUD ML 2024-20 — Flood Insurance Requirement
      source_class: hud-ml-pdf
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2024-20hsgml.pdf
      snapshot_id: 6179d83f7133a5ce
      fetched_at: '2026-05-22T19:54:53Z'
      content_hash: sha256:489e7e95daf94f137e1c87e02f9c52cf279b70f36f48ba5f5f908a138656d798
      paragraph_quote: |-
        The Mortgagee must ensure that Flood Insurance is obtained when a FEMA 
        NFIP Elevation Certificate (FEMA Form FF-206-FY-22-152) documents 
        that the Property remains located within an SFHA.
      drafter_attestation: |
        Copied verbatim from snapshot 6179d83f7133a5ce (content.txt) at
        2026-05-22T20:18Z. Substring is the Flood Insurance Required standard
        reiterated by ML 2024-20.
    promoted_at: '2026-05-22T20:17:34+00:00'
    promoted_from: hud-ml-2024-20-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-22T20:17:34+00:00'
    candidate_path: obligations\_remediation\_round_b_drafts\hud-ml-2024-20-roundb-v1.yaml
    candidates_promoted: 2
    candidates_skipped_existing: 0

Verbatim regulatory text (2)

Verbatim provisions from HUD Mortgagee Letter 2024-20 — 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 2024-20 — Eligibility for New Construction in SFHAs (II.A.1.b.iv(A)(1)(b))

If any portion of the dwelling and related Structures or equipment essential to the Property Value is located in an SFHA, the Property is not eligible for FHA mortgage insurance, unless the Mortgagee:

Source: HUD ML 2024-20 — II.A.1.b.iv(A)(1)(b) · source URL · snapshot 6179d83f7133a5ce

HUD ML 2024-20 — Flood Insurance Required When Property Remains in SFHA

The Mortgagee must ensure that Flood Insurance is obtained when a FEMA NFIP Elevation Certificate (FEMA Form FF-206-FY-22-152) documents that the Property remains located within an SFHA.

Source: HUD ML 2024-20 — Flood Insurance Requirement · source URL · snapshot 6179d83f7133a5ce