Can a Mortgagee pass the cost for disaster re-inspections to the borrower?

Yes. FHA does not prohibit the mortgagee from charging the borrower for re-inspection.   However, they must ensure that all fees charged to the borrower comply with all applicable federal, state and local laws and disclosure requirements. 

For additional information see Handbook 4000.1 II.A.6.a.x & II.A.7.c at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

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-04529