Does HUD still approve home builders?

HUD discontinued approving builders in 1995 and amended the Builder Certification process to include certifications for compliance with HUD Guidelines including Affirmative Fair Housing Marketing Plans.

Outstanding instructions to lenders on acquiring and retaining construction plans, specifications, builder warranties, etc., remain in effect.

While the mortgagee is expected to collect and retain certified plans, specifications and other documents from the builder, it is not expected to review or "approve" them. For more information on Affirmative Fair Housing Marketing Plans, see Mortgagee Letter 2001-09.

Mortgagee Letter 1995-57 

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-01948