If the mortgagee is aware that a property is located in an area serviced by an unacceptable public water system with unacceptable levels of contaminants, must a water test be completed?

Yes. A water test is required for properties located in an area serviced by a public water system with unacceptable levels of contaminants.

Water quality must meet the standards set by the Environmental Protection Agency (EPA), as presented in the National Primary Drinking Water regulations in 40 CFR  141 and 142 available at http://www.ecfr.gov.

HUD Policy Determination

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-05141