News & Analysis as of

Federal Housing Administration (FHA) Department of Housing and Urban Development

Orrick, Herrington & Sutcliffe LLP

HUD releases RFI on Buy Now, Pay Later housing products

On June 24, the FHA within HUD issued an RFI seeking public input on the implications of Buy Now, Pay Later (BNPL) lending for housing affordability and stability. Through this RFI, the FHA will seek to better understand how...more

Orrick, Herrington & Sutcliffe LLP

FHA archives nearly 600 inactive mortgagee letters

On May 19, it was reported that the FHA’s Office of Single Family Housing (OSFH) archived nearly 600 inactive mortgagee letters after determining that their inclusion on OSFH’s website caused confusion among lenders seeking...more

Ballard Spahr LLP

HUD Modifies Exclusive REO Listing Period and Eliminates Exclusive Sales Period

Ballard Spahr LLP on

Recently, the U.S. Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2025-13 to revise the exclusive listing period for certain parties in connection with HUD real estate owned (REO) properties, and...more

Ballard Spahr LLP

HUD further revises servicing and claims requirements and loss mitigation options

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In January 2025 the U.S. Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2025-06 revising servicing and claims requirements and loss mitigation options for FHA insured mortgage loans effective...more

Ballard Spahr LLP

HUD reverses course and eliminates eligibility of Non-Permanent U.S. Residents for FHA Loans

Ballard Spahr LLP on

In the waning hours of the first Trump Administration the U.S. Department of Housing and Urban Development (HUD) announced that effective January 19, 2021 individuals who are classified under the “Deferred Action for...more

Alston & Bird

HUD Revises Borrower Residency Requirements for FHA-Insured Mortgages

Alston & Bird on

What Happened? On March 26, 2025, the U.S. Department of Housing and Urban Development (HUD or the Department) issued Mortgagee Letter 2025-09 (ML 2025-09), which updates HUD’s residency requirements for borrower eligibility...more

Troutman Pepper Locke

Troutman Pepper Locke Weekly Consumer Financial Services Newsletter – March 2025 # 4

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To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week....more

Orrick, Herrington & Sutcliffe LLP

FHA rescinds three appraisal policies in new mortgagee letter

On March 19, the FHA rescinded three mortgagee letters related to appraisal policies in its Single Family Housing programs through Mortgagee Letter 2025-08. The letter rescinds FHA Single Family Housing policy changes issued...more

Bradley Arant Boult Cummings LLP

Potential Impact of FHA’s Revised Defect Taxonomy on Mortgage Originators and Servicers

On January 7, 2025, the Federal Housing Administration (FHA) officially revised its Defect Taxonomy (Final Defect Taxonomy) with the publication of Mortgagee Letter (ML) 2025-01 and the related attachment detailing those...more

Ballard Spahr LLP

FHA issues revised cybersecurity requirements

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As previously reported in May 2024 FHA announced a requirement for FHA approved lenders to notify the U.S. Department of Housing and Urban Development (HUD) of Significant Cybersecurity Incidents, and the requirement was...more

Wyrick Robbins Yates & Ponton LLP

Maybe Not Practical After All: HUD Proposes Revised Cyber Incident Reporting Requirement for FHA-Approved Mortgagees

As we discussed in a recent post, earlier this year the U.S. Department of Housing and Urban Development (“HUD”) issued Mortgagee Letter 2024-10, which imposed a new requirement on all FHA-approved mortgagees to report...more

Cooley LLP

Federal Housing Administration Publishes Draft Updates to Its Cyber Reporting Requirements

Cooley LLP on

On September 30, 2024, the Federal Housing Administration (FHA) published a draft Mortgagee Letter (ML) with updated cyber incident reporting requirements and a call for interested stakeholders to provide feedback to the...more

Orrick, Herrington & Sutcliffe LLP

FHA finalizes rule for modernization of engagement with mortgagors in default

On August 2, the FHA finalized a rule allowing mortgagees to communicate with borrowers in default remotely, rather than in-person which was previously required, citing positive feedback after waivers of the in-person...more

Ballard Spahr LLP

HUD, Fannie Mae and Freddie Mac Delay Implementation of Reconsideration of Value Guidance

Ballard Spahr LLP on

As previously reported, the U.S. Department of Housing and Urban Development (HUD) in connection with single-family residential mortgage loans insured by the Federal Housing Administration (FHA), and Fannie Mae and Freddie...more

Cadwalader, Wickersham & Taft LLP

Stay Just a Little Bit Longer: Not Jackson Browne but the Statute of Limitations

The Second Department recently held  in Trento 67, LLC v. OneWest Bank, N.A., et. al  that the FHA COVID-19 moratorium constituted a stay of foreclosures for federally-backed mortgages, and thus tolled the statute of...more

Orrick, Herrington & Sutcliffe LLP

HUD proposes rule to govern the sale of FHA mortgage notes

On July 17, HUD announced a rule to regulate the sale of seriously delinquent mortgage loans insured by FHA. According to HUD, the proposed rule would increase the availability of affordable homes and enhance the stability of...more

Orrick, Herrington & Sutcliffe LLP

FHA expands its definition of Government-Sponsored Enterprises (GSEs)

Recently, HUD issued Mortgagee Letter 2024-12, updating its regulations to redefine Government-Sponsored Enterprises (GSEs) as separate from other governmental institutions with respect to FHA requirements for specific loan...more

Ballard Spahr LLP

FHA Finalizes Enhancements to its 203(k) Rehabilitation Mortgage Loan Program

Ballard Spahr LLP on

The Federal Housing Administration (FHA) recently finalized enhancements to its 203(k) rehabilitation mortgage loan program in Mortgagee Letter 2024-13. This action follows the FHA proposing enhancements to the program last...more

Orrick, Herrington & Sutcliffe LLP

HUD Issues New Heightened Cybersecurity Incident Notice Requirements: 5 Things to Know

The U.S. Department of Housing and Urban Development (HUD) has issued new heightened cybersecurity incident notice requirements that take effect immediately. FHA-approved mortgagees are now required to notify HUD of any...more

Alston & Bird

HUD Issues Guidance on Appraisal Reviews and Reconsiderations of Value

Alston & Bird on

What Happened? Continuing its focus on appraisal bias, the U.S. Department of Housing and Urban Development (“HUD”) issued new guidance to Federal Housing Administration (“FHA”) mortgagees regarding appraisal reviews and...more

Orrick, Herrington & Sutcliffe LLP

FHA issues reporting requirements on significant cybersecurity incidents

On May 23, HUD issued Mortgagee Letter (ML) 2024-10 titled “Significant Cybersecurity Incident (Cyber Incident) Reporting Requirements” which required FHA-approved mortgagees to notify HUD when a “Cyber Incident” occurs. A...more

Cooley LLP

Federal Housing Administration Adopts New Cyber Reporting Requirements

Cooley LLP on

The Federal Housing Administration (FHA) published Mortgagee Letter 2024-10 (Letter) on May 23, 2024, requiring FHA-approved Mortgagees to report certain cyber incidents to the Department of Housing and Urban Development...more

Ballard Spahr LLP

HUD, Fannie Mae and Freddie Mac Issue Reconsideration of Value Guidance to Combat Appraisal Bias

Ballard Spahr LLP on

The U.S. Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), recently issued Mortgagee Letter 2024-07 addressing reconsideration of value (ROV) policies in connection with...more

Buchalter

HUD Issues Rule with New Flood Risk Standards – Impacts New Construction and Substantial Improvements to Properties Financed and...

Buchalter on

On April 2, 2024, HUD published a new rule in the Federal Register regarding the Federal Flood Risk Management Standard (FFRMS). The new rule updates the HUD regulations on Floodplain Management and Protection of Wetlands and...more

Mayer Brown

US FHA Introduces Payment Supplement Loss Mitigation Option

Mayer Brown on

In an effort to help struggling borrowers stay in their homes, the US Department of Housing and Urban Development’s (“HUD” or “Department”) Federal Housing Administration (“FHA”) recently introduced its newest loss mitigation...more

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