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a. Servicing Roles and Responsibilities (10/01/2025)
i. Definitions
The Mortgage Holder is the entity who holds title to the FHA-insured Mortgage and has the right to enforce the mortgage agreement.
The Mortgage Servicer (Servicer) is the entity responsible for performing servicing actions on FHA-insured Mortgages on its behalf or on behalf of or at the direction of another FHA-approved Mortgagee.
ii. Standard
Mortgage Holders must ensure all FHA-insured Mortgages are serviced by a Servicer in accordance with FHA requirements and all applicable laws.
Servicers must service all FHA-insured Mortgages in accordance with FHA requirements and all applicable laws.
(A) Laws and Requirements Applicable to Mortgage Servicing
Mortgagees must comply with all laws, rules, and requirements applicable to mortgage servicing, including full compliance with the applicable requirements under the purview of the Consumer Financial Protection Bureau (CFPB), including the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), and, if applicable, Ginnie Mae’s mortgage-backed securities requirements.
(B) Contract Terms
Where mortgage contract terms are more stringent or restrictive than those provided for in applicable law, the Mortgagee must comply with the mortgage contract terms.
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III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages
1. Servicing of FHA-Insured Mortgages
(C) Nondiscrimination Policy
Mortgagees must comply with all antidiscrimination laws, rules, and requirements applicable to servicing performing FHA-insured Mortgages and FHA-insured Mortgages in Default, including full compliance with the applicable requirements of:
• the Fair Housing Act, 42 U.S.C. §§ 3601–3619;
• the Fair Credit Reporting Act (FCRA), 15 U.S.C. §§ 1681a‒1681x; and
• the Equal Credit Opportunity Act (ECOA), 15 U.S.C. §§ 1691a‒1691f.
The Mortgagee must make all determinations with respect to the adequacy of the Borrower’s income in a uniform manner that does not discriminate because of the race, color, religion, sex, age, national origin, familial status, disability, marital status, receipt of public assistance, because an applicant has in good faith exercised any right under the Consumer Credit Protection Act, or location of the Property.