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HUD Extends Handbook 4000.1 Implementation

hud handbook 4000.1

Mortgagees Must Implement Changes by March 31, 2022.

On April 19, 2021, HUD published updates to the Single-Family Housing Policy Handbook (Handbook 4000.1). Mortgagees were instructed that changes to Handbook 4000.1 could be implemented immediately but were required to be implemented no later than August 17, 2021.

Due to the continued COVID-19 pandemic, Mortgagees are experiencing a large volume of Borrowers impacted by COVID-19 who are seeking loss mitigation assistance. HUD recognizes the resources required to implement the changes to Handbook 4000.1 may cause delays in assisting those Borrowers in resolving their delinquencies and avoiding foreclosure. To mitigate the impacts to both Borrowers and Mortgagees, HUD is extending the implementation date to allow Mortgagees additional time to implement the changes.

For the Handbook 4000.1 changes published on April 19, 2021, Mortgagees must implement the policies set forth in Section III – Servicing and Loss Mitigation, Appendix 4.0 – FHA-Home Affordable Modification Program (FHA-HAMP) Calculations, and Appendix 5.0 – HUD Schedule of Standard Possessory Action and Deed-In-Lieu of Foreclosure Attorney Fees of Handbook 4000.1 no later than March 31, 2022. Any other previously announced effective dates are not impacted by these changes.

Any questions regarding this Mortgagee Letter should be directed to the FHA Resource Center at 1-800-CALLFHA (1-800-225-5342). Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at (800) 877-8339. For additional information on this Mortgagee Letter, please visit