Recently, FHA’s Office of Single Family Housing included on its “Drafting Table” a request for stakeholder feedback on both a draft Mortgagee Letter establishing the Optional Reimbursement Claim Alternative Option (“ORCA”) and a draft Mortgage Letter on Partial Claim Document Recording and Payoff Statements.
The draft ORCA Mortgagee Letter would allow mortgagees to be reimbursed for their tax and insurance advances on defaulted FHA single-family forward mortgages after the borrower’s escrow is exhausted, but before the final claim payment is made. The draft Partial Claim Mortgagee letter would extend the time to record Partial Claim security instruments and establish a new procedure that would make Mortgagees responsible for obtaining and providing Partial Claim payoff statements. FHA is accepting feedback on the draft ORCA Mortgagee Letter until March 3, and the draft Partial Claim Mortgagee Letter until March 10.
