Updates to the Updates of FHA’s Servicing, Loss Mitigation, and Claims Processes

Updates to the Updates of FHA’s Servicing, Loss Mitigation, and Claims Processes

At the tail end of the Biden administration, the Federal Housing Administration (FHA) published Mortgagee Letter 2025-06, which was tilted Updates to Servicing, Loss Mitigation, and Claims. The 251-page mortgagee letter outlines various changes to FHA’s servicing requirements in Handbook 4000.1, such as updated requirements for forbearances and extending the availability of COVID-19 Recovery Options to February 1, 2026. However, on April 15, 202…

HUD Modifies Upcoming Permanent Loss Mitigation Options - Weiner Brodsky Kider PC

HUD recently issued Mortgagee Letter (ML) 2025-12, modifying certain provisions of ML 2025-06 and providing revised and updated loss mitigation guidance.  Citing concerns over increased default rates associated with COVID-19 recovery options and the need to further protect the Mutual Mortgage Insurance Fund, HUD is implementing changes before the framework under ML 2025-06 takes effect. The changes include: Permanently ending the COVID-19 Loss …