What documents must be retained in the FHA servicing file for a performing mortgage modification?

For all modifications, the Mortgagee must retain the following in their servicing files:
  • a mortgage modification document, in the form of:
    • an amended original Note, with all changes initialed by all parties; or
    • a modification agreement executed by all parties;
  • documentation evidencing that criteria for modifying the Mortgage with or without HUD approval, as appropriate, were met;
  • documentation showing calculations of the modified principal amount and the new monthly payment amount; and
  • proof that any unpaid escrow added to the new principal amount was credited to the Borrower’s escrow 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.j.ii.(F)(1) 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-05241