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A processor asks how to handle a file where a trainee asks which official source controls FHA single-family origination policy. Which response is most accurate?

Correct Answer

C) Use HUD Handbook 4000.1 for FHA single-family policy

Lines 143-149; HUD FHA Handbook 4000.1 information page. FHA policy is consolidated in HUD Handbook 4000.1, not in private overlays alone. Therefore, the correct response is "Use HUD Handbook 4000.1 for FHA single-family policy".

Answer Options
A
Delay the Government mortgage program basics FHA step until a later privacy notice review instead of acting now.
B
Ignore product, occupancy, LTV, or eligibility limits because the borrower prefers the loan.
C
Use HUD Handbook 4000.1 for FHA single-family policy
D
Use the same treatment for all mortgage products without comparing program requirements.

Why This Is the Correct Answer

Lines 143-149; HUD FHA Handbook 4000.1 information page. FHA policy is consolidated in HUD Handbook 4000.1, not in private overlays alone. Therefore, the correct response is "Use HUD Handbook 4000.1 for FHA single-family policy".

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