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e. Lien Status (10/01/2025)
The Mortgagee must preserve the first lien status of the FHA-insured Mortgage. HUD will not pay a claim on a Mortgage that is not in first priority position.
HUD Handbook 4000.1 III.A.2.e: Lien Status
Guideline text quoted as published by the agency. The latest published version governs. This is not an underwriting decision.