HUD Delays the Implementation of the SFH 4000.1

Written By: Glenn Michaels

On April 30, 2015, HUD announced a delay in the implementation of the new Single Family Handbook (SFH) 4000.1. The original date was June 15, 2015 and now the new date is September 14, 2015.

Upon reading the new SFH 4000.1 it appears that HUD incorporated many prior handbooks and mortgagee letters into the new handbook. New Direct Endorsed Underwriters will no longer have to go back to numerous Mortgagee Letters and handbooks to accomplish their job tasks.

According to HUD’s announcement, the Single Family Handbook 4000.1 contains several new sections, they are:

  • Doing Business with FHA – Lenders and Mortgagees.

  • Doing Business with FHA – Other Participants – Appraisers.

  • Quality Control, Oversight and Compliance – Lenders and Mortgagees.

All case numbers assigned on or after September 14, 2015 are based on the guidelines found in the Single Family Handbook 4000.1.

Throughout the new handbook there are many changes and below I will attempt to give some of the many changes. The first obvious change is the Table of Contents. HUD switched the titles for headings II and A and moved 203(k) consultant requirements to heading 9 under A.

According to the announcement the SFH 4000.1 contains approximately ninety (90) changes to existing underwriting manuals. The announcement spells out each and every change along with the page number where the change took place. The announcement identifies each and every change made by HUD.

There are parts from the new SFH 4000.1 effective June 15, 2015. These parts are as follows:

  • Doing Business with FHA – Lenders and Mortgagees.

  • Doing Business with FHA – Other Participants – Appraiser.

  • Quality Control, Oversight and Compliance – Lenders and Mortgagees.

HUD has eliminated the following guidelines when the SFH 4000-1 is fully implemented:

Handbooks numbered: 4905.1, 4260.1, 4240.4, 4240.3, 4240.2, 4155.1, 4150.2, 4150.1, 4060.2, 4060.1, 4700.2, and 4155.2, 4910.1, 4700.2,

HUD has also eliminated many mortgagee letters so DE underwriters will not have to refer to these mortgagee letters when 4000.1 is in effect. Mortgagee Letters from 2015 – 01 to 1981 – 06 have mostly been superseded by the new SFH 4000.1 HUD also indicates that some Mortgagee Letters were superseded in part by the new SFH 4000.1.

Between the items superseded in full, or in part is a monster for FHA DE Underwriters to keep track of.

I will continue to underwrite as usual but will have the new handbook available to make sure I follow the new SFH 4000.1 effective September 14, 2015 unless delayed again.

My suggestion to all FHA Direct Endorsed Underwriters is to download the new handbook, do not bother to print it. The handbook has numerous spots underlined and upon clicking the underlined item the handbook moves to other interactive pages.

I believe overall HUD made some great strides in the updating of HUD guidelines effective June 15, 2015 and September 14, 2015.

Happy Reading everyone!

About The Author

Glenn Michaels - As an NAMP® staff writer, Glenn Michaels is a mortgage underwriting instructor for Mortgage Underwriter University ( As a BBA & FHA DE Underwriter, Glenn is a Pace University graduate who also graduated from New York University’s School of Mortgage Finance. Glenn has conducted numerous training classes and has worked in the mortgage banking industry for 38 years. If you're interested in becoming a writer for NAMP®, please email us at:

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