Are servicing Mortgagees required to maintain a Trust Clearing Account to hold mortgage payments?

The Mortgagee must either use a Trust Clearing Account or special custodial account to hold all payments on the FHA-insured Mortgage.  The Mortgageeā€™s Trust Clearing Account may be used for collections received on all types of Mortgages. If a Trust Clearing Account is not used, the Mortgagee must immediately transfer payments into a special custodial account.

Additional questions may be directed to the HUD National Servicing Center at (877) 622-8525.

For policy information see Handbook 4000.1 III.A.1.e.i. at:

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-05213