News & Analysis as of

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

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

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

Mayer Brown

US FHA Introduces Payment Supplement Loss Mitigation Option

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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

Ballard Spahr LLP

HUD Announces FHA Loan Payment Supplement Loss Mitigation Program

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The U.S. Department of Housing and Urban Development (HUD) recently announced a Payment Supplement loss mitigation program for Federal Housing Administration (FHA) insured Title 2 mortgage loans, the details of which are set...more

Orrick, Herrington & Sutcliffe LLP

HUD establishes 40-year loss-mit option

On March 8, HUD published a final rule in the Federal Register to allow mortgagees to increase the maximum term of a loan modification from 360 to 480 months for FHA-insured mortgages after a borrower defaults. ...more

Orrick, Herrington & Sutcliffe LLP

FHA expands Covid-19 loss mitigation options

On February 13, HUD issued Mortgagee Letter 2023-03, which makes technical corrections to Mortgagee Letter 2023-02 issued in January that expanded and enhanced loss mitigation options for borrowers struggling to make payments...more

Ballard Spahr LLP

HUD Addresses FHA COVID-19 Loss Mitigation Options

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In Mortgagee Letter 2020-22, dated July 8, 2020, the U.S. Department of Housing and Urban Development (HUD) addresses the COVID-19 Loss Mitigation Options for FHA Title II single-family, forward mortgage loans. ...more

Lowenstein Sandler LLP

FHA’s Loss Mitigation Options for Single-Family Borrowers Affected by the Presidentially Declared COVID-19 National Emergency in...

On April 1, 2020, the U.S. Department of Housing and Urban Development (HUD) issued a Mortgagee Letter informing mortgagees of special Loss Mitigation Home Retention Options available to single family borrowers, as well as an...more

Ballard Spahr LLP

FHA Announces Additional Loss Mitigation Options Based on CARES Act

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In Mortgagee Letter 2020-06, dated April 1, 2020, the U.S. Department of Housing and Urban Development (HUD) announced further loss mitigation options for FHA loans based on the Coronavirus Aid, Relief, and Economic Security...more

Ballard Spahr LLP

HUD Announces Updates To FHA Loss Mitigation Options In Disaster Areas

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The U.S. Department of Housing and Urban Development (HUD) recently issued Mortgagee Letter 2019-14 to announce updates to loss mitigation options for borrowers with Federal Housing Administration (FHA) insured loans if the...more

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