# Compliance for Claude Playbook Bundle: FHA Loss Mit — current waterfall + recent ML stack _Generated 2026-07-14T03:01:44+00:00 by build-playbook-downloads.py from Compliance for Claude, at claudeforcompliance.com._ HUD Handbook 4000.1 Part III.A.2 + FHA servicing CFR + recent HUD Mortgagee Letters (2024-2025) + FNMA Servicing Part D cross-reference + Reg X §1024.41 consumer-protection floor. --- # HUD Handbook 4000.1 Part III.A.2 — Loss Mitigation (Forward Mortgages) **Register slug:** `hud-4000-1-iii-a-3-loss-mit` **Obligation count:** 5 ## Register description HUD Handbook 4000.1 Part III.A.2 (Loss Mitigation Review subchapter) governs the FHA Loss Mitigation Program: Mortgagee duties to address delinquency early, follow the Collection Communication Timeline, use the 9-option Loss Mitigation Waterfall (Repayment Plan, Forbearance, Partial Claim, Loan Modification, Combination, Payment Supplement, OWL, Pre-Foreclosure Sale, Deed-in-Lieu), and re-evaluate delinquent loans. Includes 90-Day Review pre-4- installment-default evaluation rule, SCRA-protection duty for servicemember Borrowers, and consideration of Owner-Occupant + Non-Occupant Borrowers for all options. Fills HUD 4000.1 Part III Loss Mitigation gap. ## Obligations #### HUD Handbook 4000.1 III.A.2 — Address delinquency at earliest possible time **Obligation ID:** `hud-4000-1-iii-a-3-loss-mit-address-delinquency-earliest-time` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** continuous **Operative duty (lender voice):** > In implementing HUD's Loss Mitigation Program, [LENDER] > (Mortgagee) shall consider all reasonable means to address > delinquency at the earliest possible time. The early-engagement > duty is the foundation of FHA loss mitigation; delay reduces > workout-success likelihood and increases foreclosure risk. **Compliance obligation:** > For every Delinquent FHA-insured Mortgage, can [LENDER] evidence (via servicing logs, contact-attempt records, early-stage workout-option offers) that all reasonable means were considered to address delinquency at the earliest possible time? **Verbatim regulator text:** ``` consider all reasonable means to address delinquency at the earliest possible time ``` _Authority_: HUD Handbook 4000.1 III.A.2 — Loss Mitigation Program _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z **Consequence of non-compliance:** Late-engagement loss mitigation reduces workout-success and is a FHA Servicing Guide deficiency. --- #### HUD Handbook 4000.1 III.A.2 — Re-evaluate each Delinquent Mortgage for Loss Mitigation Options **Obligation ID:** `hud-4000-1-iii-a-3-loss-mit-reevaluate-each-delinquent` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** continuous **Operative duty (lender voice):** > [LENDER] (Mortgagee) shall re-evaluate each Delinquent Mortgage > for Loss Mitigation Options, as required. Re-evaluation is > ongoing, not one-shot — circumstances change and prior workout > ineligibility may resolve; [LENDER] cannot lock a Borrower > into a single point-in-time eligibility determination. **Compliance obligation:** > For every Delinquent FHA-insured Mortgage, can [LENDER] evidence a re-evaluation schedule and produce subsequent-evaluation records reflecting any change in Borrower circumstances? **Verbatim regulator text:** ``` re-evaluate each Delinquent Mortgage for Loss Mitigation Options, as required. ``` _Authority_: HUD Handbook 4000.1 III.A.2 — Loss Mitigation Program _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z **Consequence of non-compliance:** One-shot loss-mit determinations missing re-evaluation are a FHA Servicing Guide breach + CFPB Reg X dual-tracking exposure. --- #### HUD Handbook 4000.1 III.A.2.iii(A)(1)(b) — Consider Owner-Occupant AND Non-Occupant Borrowers for all Loss Mitigation Options **Obligation ID:** `hud-4000-1-iii-a-3-loss-mit-consider-owner-occupant-and-non-occupant` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-evaluation **Operative duty (lender voice):** > [LENDER] (Mortgagee) shall consider Owner-Occupant Borrowers AND > Non-Occupant Borrowers for all Loss Mitigation Options. > Investor-occupancy or non-occupancy is NOT a categorical > disqualifier from loss mitigation — both occupancy classes get > the full waterfall review. **Compliance obligation:** > For every Loss Mitigation evaluation, can [LENDER] evidence that occupancy status (Owner-Occupant vs Non-Occupant) was NOT used to disqualify the Borrower from waterfall consideration? **Verbatim regulator text:** ``` The Mortgagee must consider Owner-Occupant Borrowers and Non-Occupant Borrowers for all Loss Mitigation Options. ``` _Authority_: HUD Handbook 4000.1 III.A.2.iii(A)(1)(b) — Occupancy Standard _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z **Consequence of non-compliance:** Excluding Non-Occupant Borrowers from waterfall review is a FHA Servicing Guide breach + potential fair-housing / ECOA exposure. --- #### HUD Handbook 4000.1 III.A.2.iii(B) — 90-Day Review: complete Loss Mit evaluation before 4 monthly installments + send written Notice **Obligation ID:** `hud-4000-1-iii-a-3-loss-mit-90-day-review-before-4-installments` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** per-defaulted-loan **Operative duty (lender voice):** > [LENDER] (Mortgagee) is required to complete an evaluation of a > Defaulted Mortgage for appropriate Loss Mitigation Options > BEFORE four monthly installments are due and unpaid AND send a > written Notice to Borrower with the determination of > eligibility. The 90-Day Review pre-4-installment bright-line > caps the loss-mit-evaluation-completion deadline for FHA loans > in default. **Compliance obligation:** > For every Defaulted FHA-insured Mortgage, can [LENDER] evidence (a) Loss Mitigation evaluation completed BEFORE the 4th monthly installment came due unpaid, AND (b) written Notice to Borrower with determination of eligibility? **Verbatim regulator text:** ``` A Mortgagee is required to complete an evaluation of a Defaulted Mortgage for appropriate Loss Mitigation Options before four monthly installments are due and unpaid and send a written Notice to Borrower with the determination of eligibility. ``` _Authority_: HUD Handbook 4000.1 III.A.2.iii(B) — 90-Day Review _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z **Consequence of non-compliance:** Missing the pre-4-installment evaluation or written notice is a 90-Day Review breach; FHA Servicing Guide defect + potential dual-tracking risk under Reg X. --- #### HUD Handbook 4000.1 III.A.2.ii — Offer SCRA mortgage protections to eligible servicemember Borrowers **Obligation ID:** `hud-4000-1-iii-a-3-loss-mit-servicemember-scra-protections` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** per-servicemember-borrower **Operative duty (lender voice):** > [LENDER] (Mortgagee) shall offer eligible servicemember Borrowers > mortgage protections under the SCRA and Servicing FHA-Insured > Mortgages for Servicemember-Borrowers. The SCRA + FHA- > servicemember dual-rule layering provides comprehensive > protection during military service. **Compliance obligation:** > For every Defaulted FHA-insured Mortgage where the Borrower is or may be a servicemember, can [LENDER] evidence (a) SCRA-eligibility verification (DMDC check, military orders) and (b) offer of the applicable SCRA mortgage protections? **Verbatim regulator text:** ``` The Mortgagee must offer eligible servicemember Borrowers mortgage protections under the SCRA and Servicing FHA-Insured Mortgages for Servicemember-Borrowers. ``` _Authority_: HUD Handbook 4000.1 III.A.2.ii — Servicemember Status _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z **Consequence of non-compliance:** Missing SCRA protections expose [LENDER] to federal SCRA enforcement + FHA Servicing Guide breach + DOJ exposure (SCRA private right of action). --- --- # HUD Handbook 4000.1 Part III.A.2 — Default Servicing (Forward Mortgages) **Register slug:** `hud-4000-1-iii-a-2` **Obligation count:** 5 ## Register description HUD Handbook 4000.1 Part III.A.2 governs Default Servicing for FHA forward mortgages: Delinquency vs Default definitions (Default = 30-day uncorrected failure); standard requiring FHA-conforming servicing of delinquent/default loans; 30-day-month convention for Default-related timelines; CRA + IRS reporting accuracy; Late Charge 15-day-late trigger and 4% P&I cap (post-3/14/2016 cases); advance-written-notice requirement before assessing Late Charge. Fills HUD 4000.1 Part III.A.2 chapter gap. ## Obligations #### HUD Handbook 4000.1 III.A.2.a.i — Default = 30-day uncorrected failure to perform **Obligation ID:** `hud-4000-1-iii-a-2-default-definition-30-days` **Workflow phase:** default_collections **Owner role:** chief_servicing_officer **Cadence:** continuous **Operative duty (lender voice):** > A Mortgage is in Default when the Borrower fails to make any > payment or perform any other obligation under the Mortgage, and > such failure continues for a period of 30 Days. [LENDER] > (Mortgagee) shall use this Default definition for FHA-loss- > mitigation, claim, and reporting timelines. The 30-day > uncorrected-failure threshold is the canonical FHA Default > trigger. **Compliance obligation:** > Does [LENDER]'s servicing system apply the 30-day-uncorrected-failure Default trigger for every FHA mortgage, with timestamped Default-date records? **Verbatim regulator text:** ``` A Mortgage is in Default when the Borrower fails to make any payment or perform any other obligation under the Mortgage, and such failure continues for a period of 30 Days. ``` _Authority_: HUD Handbook 4000.1 III.A.2.a.i — Definitions _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z **Consequence of non-compliance:** Mis-classified Default dates cascade into late-fee, loss-mit-timeline, and claim-filing errors; FHA QC defects. --- #### HUD Handbook 4000.1 III.A.2.a.ii — Service delinquent/default FHA loans per FHA requirements + applicable laws **Obligation ID:** `hud-4000-1-iii-a-2-service-delinquent-default-per-fha-and-laws` **Workflow phase:** default_collections **Owner role:** chief_compliance_officer **Cadence:** continuous **Operative duty (lender voice):** > [LENDER] (Mortgagee) shall ensure FHA-insured Mortgages in > Delinquency or Default are serviced in accordance with FHA > requirements and applicable laws. The compliance stack spans > FHA Default Servicing rules (this chapter), CFPB Reg X loss- > mit servicing rules, FCRA/FDCPA, state default-servicing law, > and any borrower-protective contract terms. **Compliance obligation:** > Can [LENDER] evidence (via servicing P&Ps, training records, QA samples) that delinquent/default FHA loans are serviced per (a) FHA requirements, AND (b) all applicable laws (Reg X, FCRA, FDCPA, state law)? **Verbatim regulator text:** ``` The Mortgagee must ensure FHA-insured Mortgages in Delinquency or Default are serviced in accordance with FHA requirements and applicable laws. ``` _Authority_: HUD Handbook 4000.1 III.A.2.a.ii — Standard _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z **Consequence of non-compliance:** Non-conforming default servicing creates dual FHA-QC + CFPB/state-law exposure. --- #### HUD Handbook 4000.1 III.A.2.a.ii — HUD considers all months to have 30 days for Default timelines **Obligation ID:** `hud-4000-1-iii-a-2-30-day-months-for-default-timelines` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** continuous **Operative duty (lender voice):** > For the purpose of determining the date of Default and timelines > related to Default, HUD considers all months to have 30 Days. > [LENDER] (Mortgagee) shall apply this 30-day-month convention to > Default-date computation and all downstream loss-mitigation, > foreclosure-initiation, and claim-filing deadlines tied to > Default. **Compliance obligation:** > Does [LENDER]'s servicing-system day-counting logic implement HUD's 30-day-month convention for Default-related dates and timelines? **Verbatim regulator text:** ``` For the purpose of determining the date of Default and timelines related to Default, HUD considers all months to have 30 Days. ``` _Authority_: HUD Handbook 4000.1 III.A.2.a.ii — Standard _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z **Consequence of non-compliance:** Using calendar-month day counts instead of 30-day months shifts Default-related deadlines and creates FHA-timeline defects. --- #### HUD Handbook 4000.1 III.A.2.c.ii — Late Charge cap 4% of overdue P&I (case numbers on/after 3/14/2016) **Obligation ID:** `hud-4000-1-iii-a-2-late-charge-4-percent-cap` **Workflow phase:** default_collections **Owner role:** chief_servicing_officer **Cadence:** per-late-payment **Operative duty (lender voice):** > For FHA Mortgages assigned a case number on or after March 14, > 2016, [LENDER] (Mortgagee) may assess a Late Charge NOT TO > EXCEED 4 percent of the overdue payment of Principal and > Interest (P&I), in accordance with applicable state and federal > laws. For Mortgages assigned a case number BEFORE March 14, > 2016, the Late Charge may be calculated based on overdue PITI > if permitted under Note + state/federal laws. **Compliance obligation:** > For every late charge [LENDER] assessed on a post-3/14/2016 FHA loan, can [LENDER] evidence (a) the charge is ≤ 4% of overdue P&I AND (b) the charge complies with all applicable state and federal laws? **Verbatim regulator text:** ``` the Mortgagee may assess a Late Charge, not to exceed 4 percent of the overdue payment of P&I and in accordance with applicable state and federal laws. ``` _Authority_: HUD Handbook 4000.1 III.A.2.c.ii — Late Charges Standard _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z **Consequence of non-compliance:** Late charges exceeding 4% P&I (post-3/14/2016 cases) are FHA Servicing Guide breaches; state-law overcharge risk. --- #### HUD Handbook 4000.1 III.A.2.c.ii(A) — Advance written notice before collecting Late Charge **Obligation ID:** `hud-4000-1-iii-a-2-advance-written-notice-of-late-charge` **Workflow phase:** default_collections **Owner role:** chief_servicing_officer **Cadence:** per-late-charge-event **Operative duty (lender voice):** > Before collecting the Late Charge or returning a Mortgage Payment > to the Borrower for failing to pay the Late Charge, [LENDER] > (Mortgagee) shall provide the Borrower with an advance written > notice of the charge. The notice shall include (1) the due date > of the monthly Mortgage Payment, (2) the amount of the regular > monthly Mortgage Payment, (3) the date on which the Late Charge > will be imposed, and (4) the amount of the Late Charge (or full > amount now due). **Compliance obligation:** > For every Late Charge [LENDER] collected (or every payment [LENDER] returned for failure to pay Late Charge), can [LENDER] produce the advance written notice with all 4 required content elements (due date, regular payment amount, imposition date, late-charge amount)? **Verbatim regulator text:** ``` Before collecting the Late Charge or returning a Mortgage Payment to the Borrower for failing to pay the Late Charge, the Mortgagee must provide the Borrower with an advance written notice of the charge. ``` _Authority_: HUD Handbook 4000.1 III.A.2.c.ii(A) — Notifying the Borrower of the Late Charge _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z **Consequence of non-compliance:** Collecting late charge without advance written notice is a FHA Servicing Guide breach + state-law/UDAAP risk. --- --- # HUD Handbook 4000.1 III.A.2.a — Mortgages in Delinquency or Default **Register slug:** `hud-4000-1-iii-a-2-a` **Obligation count:** 2 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.a. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.a.ii — Mortgages in Delinquency or Default Standard **Obligation ID:** `hud-4000-1-iii-a-2-a-default-servicing-standard` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-defaulted-loan **Operative duty (lender voice):** > [LENDER] must ensure FHA-insured Mortgages in Delinquency or Default > are serviced in accordance with FHA requirements and applicable laws. **Compliance obligation:** > For every FHA-insured Mortgage in Delinquency or Default, can [LENDER] evidence that the servicing was performed in accordance with FHA requirements and applicable laws? **Verbatim regulator text:** ``` The Mortgagee must ensure FHA-insured Mortgages in Delinquency or Default are ``` _Authority_: HUD Handbook 4000.1 III.A.2.a.ii — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.a.ii — 30-Day Month Convention **Obligation ID:** `hud-4000-1-iii-a-2-a-30-day-month-convention` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-defaulted-loan **Operative duty (lender voice):** > For the purpose of determining the date of Default and timelines > related to Default, [LENDER] must apply HUD's convention that all > months are considered to have 30 Days. **Compliance obligation:** > For every FHA Default-related timeline calculation (date of Default, claim-filing deadlines, reasonable-diligence windows), can [LENDER] evidence application of the HUD 30-Days-per-month convention? **Verbatim regulator text:** ``` For the purpose of determining the date of Default and timelines related to Default, HUD ``` _Authority_: HUD Handbook 4000.1 III.A.2.a.ii — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # HUD Handbook 4000.1 III.A.2.b — Reporting to Consumer Reporting Agencies and the IRS **Register slug:** `hud-4000-1-iii-a-2-b` **Obligation count:** 2 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.b. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.b — Reporting to Consumer Reporting Agencies **Obligation ID:** `hud-4000-1-iii-a-2-b-cra-reporting-compliance` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** ongoing **Operative duty (lender voice):** > [LENDER] is responsible for complying with applicable law and federal > regulations relating to reporting to consumer reporting agencies, and > for ensuring that all reported information is accurate. **Compliance obligation:** > Can [LENDER] evidence (in its policies, vendor contracts, and operational records) compliance with applicable consumer-reporting-agency law/federal regulations, and accuracy of all reported information for FHA-insured Mortgages? **Verbatim regulator text:** ``` • ensuring that all reported information is accurate. ``` _Authority_: HUD Handbook 4000.1 III.A.2.b — Reporting to Consumer Reporting Agencies and the IRS _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.b — IRS Reporting Responsibility **Obligation ID:** `hud-4000-1-iii-a-2-b-irs-reporting-responsibility` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-acquisition-or-debt-cancellation **Operative duty (lender voice):** > [LENDER] is also responsible for any required IRS reporting regarding > acquisition of secured Property or cancellation of mortgage debt, > in accordance with the Internal Revenue Code (IRC). **Compliance obligation:** > For every FHA-insured Mortgage event involving acquisition of secured Property or cancellation of mortgage debt, can [LENDER] evidence required IRS reporting in accordance with the Internal Revenue Code? **Verbatim regulator text:** ``` The Mortgagee is also responsible for any required IRS reporting regarding acquisition of ``` _Authority_: HUD Handbook 4000.1 III.A.2.b — IRS Reporting Responsibility _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # HUD Handbook 4000.1 III.A.2.c — Late Charges **Register slug:** `hud-4000-1-iii-a-2-c` **Obligation count:** 3 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.c. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.c.ii — Late Charge Cap (Case Numbers On or After March 14, 2016) **Obligation ID:** `hud-4000-1-iii-a-2-c-late-charge-cap-4-percent` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-late-charge-assessment **Operative duty (lender voice):** > For Mortgages assigned a case number on or after March 14, 2016, > [LENDER] may assess a Late Charge not to exceed 4 percent of the > overdue payment of P&I, and in accordance with applicable state and > federal laws. **Compliance obligation:** > For every FHA-insured Mortgage assigned a case number on or after March 14, 2016, can [LENDER] evidence that no Late Charge exceeded 4 percent of the overdue P&I, and that all Late Charge assessments complied with applicable state and federal laws? **Verbatim regulator text:** ``` For Mortgages assigned a case number on or after March 14, 2016, the Mortgagee may ``` _Authority_: HUD Handbook 4000.1 III.A.2.c.ii — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.c.ii(A) — Notifying the Borrower of the Late Charge **Obligation ID:** `hud-4000-1-iii-a-2-c-advance-notice-before-late-charge-collection` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-late-charge-assessment **Operative duty (lender voice):** > Before collecting the Late Charge or returning a Mortgage Payment to > the Borrower for failing to pay the Late Charge, [LENDER] must > provide the Borrower with an advance written notice of the charge. **Compliance obligation:** > For every FHA-insured Mortgage where [LENDER] collected a Late Charge or returned a Mortgage Payment for failure to pay a Late Charge, can [LENDER] evidence prior delivery of an advance written notice of the charge to the Borrower? **Verbatim regulator text:** ``` Before collecting the Late Charge or returning a Mortgage Payment to the Borrower ``` _Authority_: HUD Handbook 4000.1 III.A.2.c.ii(A) — Notifying the Borrower of the Late Charge _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.c.iii — Required Documentation **Obligation ID:** `hud-4000-1-iii-a-2-c-late-charge-servicing-file-documentation` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-late-charge-assessment **Operative duty (lender voice):** > [LENDER] must ensure that the Servicing File reflects any Late Charges > assessed and includes any advance written notice of such charges sent > to the Borrower. **Compliance obligation:** > For every FHA-insured Mortgage with assessed Late Charges, does the Servicing File reflect the charges and include the advance written notice sent to the Borrower? **Verbatim regulator text:** ``` The Mortgagee must ensure that the Servicing File reflects any Late Charges assessed ``` _Authority_: HUD Handbook 4000.1 III.A.2.c.iii — Required Documentation _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # HUD Handbook 4000.1 III.A.2.d — Partial Payments for Mortgages in Default **Register slug:** `hud-4000-1-iii-a-2-d` **Obligation count:** 3 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.d. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.d.i — Acceptance of Partial Payments **Obligation ID:** `hud-4000-1-iii-a-2-d-must-accept-partial-payment` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-partial-payment **Operative duty (lender voice):** > Unless subject to the exceptions in the Return of Partial Payments for > Mortgage in Default section, [LENDER] must accept any Partial Payment > and either apply the payment to the Borrower's account or identify > the payment with the Borrower's account and hold the payment in a > suspense account. When a full monthly installment due under the > Mortgage is accumulated, [LENDER] must apply that amount to the > Borrower's account. **Compliance obligation:** > For every Partial Payment received on an FHA-insured Defaulted Mortgage (outside the enumerated exceptions), can [LENDER] evidence acceptance and either application to the Borrower's account or suspense-account holding, and application to the account once accumulated payments equal a full monthly installment? **Verbatim regulator text:** ``` Default section, the Mortgagee must accept any Partial Payment and either: ``` _Authority_: HUD Handbook 4000.1 III.A.2.d.i — Acceptance of Partial Payments _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.d.ii(A) — Application of Partial Payments Totaling a Full Monthly Payment **Obligation ID:** `hud-4000-1-iii-a-2-d-full-monthly-application-order` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-partial-payment **Operative duty (lender voice):** > When Partial Payments held for disposition total a full monthly > Mortgage Payment, [LENDER] must apply Borrower payments in the > HUD-prescribed order: MIPs due, charges for Ground Rents/taxes/special > assessments (including PACE)/flood/fire and other hazard insurance, > interest, amortization of principal, and Late Charges (consistent > with TILA regulations). **Compliance obligation:** > For every accumulated Partial Payment totaling a full monthly Mortgage Payment on an FHA-insured Defaulted Mortgage, can [LENDER] evidence application in the HUD-prescribed order (MIP, escrowed charges including PACE, interest, principal amortization, then Late Charges per TILA)? **Verbatim regulator text:** ``` When Partial Payments held for disposition total a full monthly Mortgage Payment, ``` _Authority_: HUD Handbook 4000.1 III.A.2.d.ii(A) — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.d.ii(B) — Required Documentation **Obligation ID:** `hud-4000-1-iii-a-2-d-sfdms-status-code-and-oui-advance` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-partial-payment-applied **Operative duty (lender voice):** > When applying Partial Payments totaling a full monthly Mortgage > Payment, [LENDER] must report the appropriate Status Code in the > Single Family Default Monitoring System (SFDMS) and advance the > Oldest Unpaid Installment (OUI) date one month. **Compliance obligation:** > For every application of Partial Payments totaling a full monthly Mortgage Payment on an FHA-insured Defaulted Mortgage, can [LENDER] evidence reporting of the appropriate SFDMS Status Code and advancement of the OUI date by one month? **Verbatim regulator text:** ``` When applying Partial Payments totaling a full monthly Mortgage Payment, the ``` _Authority_: HUD Handbook 4000.1 III.A.2.d.ii(B) — Required Documentation _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # HUD Handbook 4000.1 III.A.2.e — Lien Status **Register slug:** `hud-4000-1-iii-a-2-e` **Obligation count:** 1 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.e. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.e — Lien Status **Obligation ID:** `hud-4000-1-iii-a-2-e-preserve-first-lien-status` **Workflow phase:** servicing **Owner role:** compliance_officer **Cadence:** ongoing **Operative duty (lender voice):** > [LENDER] must preserve the first lien status of the FHA-insured > Mortgage. HUD will not pay a claim on a Mortgage that is not in first > priority position. **Compliance obligation:** > For every FHA-insured Mortgage in [LENDER]'s servicing portfolio, can [LENDER] evidence preservation of first lien status (no intervening senior lien, no inadvertent subordination, title monitoring per [LENDER]'s P&P)? **Verbatim regulator text:** ``` The Mortgagee must preserve the first lien status of the FHA-insured Mortgage. HUD will ``` _Authority_: HUD Handbook 4000.1 III.A.2.e — Lien Status _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z **Consequence of non-compliance:** Claim ineligibility — HUD will not pay a claim on a Mortgage that is not in first priority position. --- --- # HUD Handbook 4000.1 III.A.2.h — Loss Mitigation Program **Register slug:** `hud-4000-1-iii-a-2-h` **Obligation count:** 3 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.h. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.h.iii(A) — Eligibility to Participate in HUD Programs **Obligation ID:** `hud-4000-1-iii-a-2-h-borrower-eligibility-verification` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-evaluation **Operative duty (lender voice):** > Before offering any FHA Loss Mitigation Option, [LENDER] must verify > that the Borrowers are eligible to participate in HUD's Loss > Mitigation Program (no other FHA-insured real estate beyond the > stated exceptions; no FHA-claim-paid prior loan within the past three > years; no debarment/suspension/LDP for Loan Mod, Partial Claim, > Combination, or Payment Supplement; no unresolved delinquent Federal > Debt for Partial Claim / Combination / Payment Supplement). **Compliance obligation:** > For every FHA-insured Mortgage in Default for which [LENDER] offered a Loss Mitigation Option, can [LENDER] evidence Borrower-eligibility verification under III.A.2.h.iii(A)? **Verbatim regulator text:** ``` The Mortgagee must verify that the Borrowers are eligible to participate in HUD’s ``` _Authority_: HUD Handbook 4000.1 III.A.2.h.iii(A) — Eligibility to Participate in HUD Programs _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.h.iii(B) — 90-Day Review **Obligation ID:** `hud-4000-1-iii-a-2-h-90-day-evaluation` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-defaulted-loan **Operative duty (lender voice):** > For each FHA-insured forward Mortgage in Default, [LENDER] must > complete an evaluation of the Defaulted Mortgage for appropriate Loss > Mitigation Options before four monthly installments are due and > unpaid, and send a written Notice to Borrower with the determination > of eligibility. **Compliance obligation:** > For every FHA-insured forward Mortgage in Default, can [LENDER] evidence completion of the loss-mit evaluation before four monthly installments became due and unpaid, and delivery of the written Notice to Borrower with the determination of eligibility? **Verbatim regulator text:** ``` A Mortgagee is required to complete an evaluation of a Defaulted Mortgage for ``` _Authority_: HUD Handbook 4000.1 III.A.2.h.iii(B) — 90-Day Review _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.h.iv(B) — Evaluation of Borrower for Loss Mitigation Assistance, Standard **Obligation ID:** `hud-4000-1-iii-a-2-h-no-borrower-cash-contribution` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-offer **Operative duty (lender voice):** > [LENDER] must not condition the use of a Loss Mitigation Option on > the receipt of a Borrower's cash contribution or a Borrower's payment > of fees or charges. **Compliance obligation:** > For every FHA Loss Mitigation Option offered, can [LENDER] evidence that the offer was not conditioned on a Borrower cash contribution or on Borrower payment of fees or charges? **Verbatim regulator text:** ``` The Mortgagee must not condition the use of a Loss Mitigation Option on the receipt ``` _Authority_: HUD Handbook 4000.1 III.A.2.h.iv(B) — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # HUD Handbook 4000.1 III.A.2.i — Loss Mitigation Home Retention Options **Register slug:** `hud-4000-1-iii-a-2-i` **Obligation count:** 3 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.i. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.i.ii(A)(2) — Repayment Plans Standard **Obligation ID:** `hud-4000-1-iii-a-2-i-repayment-plan-affordability-review` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-evaluation **Operative duty (lender voice):** > [LENDER] must review the Borrower for a Repayment Plan if the Borrower > affirms the monthly installment amount required under the terms of > the Repayment Plan Agreement is affordable. **Compliance obligation:** > For every Borrower who affirmed affordability under a proposed Repayment Plan Agreement, can [LENDER] evidence a documented Repayment Plan review? **Verbatim regulator text:** ``` The Mortgagee must review the Borrower for a Repayment Plan if the Borrower ``` _Authority_: HUD Handbook 4000.1 III.A.2.i.ii(A)(2) — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.i.ii(A)(2) — Repayment Plans Standard, Term Cap **Obligation ID:** `hud-4000-1-iii-a-2-i-repayment-plan-24-month-cap` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-workout **Operative duty (lender voice):** > [LENDER] must ensure the term of the Repayment Plan does not exceed > 24 months, and must require the delinquency to be repaid in equal > monthly installments, in addition to the Mortgage Payments, over the > term of the Repayment Plan. **Compliance obligation:** > For every Repayment Plan Agreement, can [LENDER] evidence that the plan term does not exceed 24 months and that the delinquency is repaid in equal monthly installments in addition to the Mortgage Payments over the term? **Verbatim regulator text:** ``` • ensure the term of the Repayment Plan does not exceed 24 months; and ``` _Authority_: HUD Handbook 4000.1 III.A.2.i.ii(A)(2) — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.i.ii(A)(4) — Repayment Plan Agreement **Obligation ID:** `hud-4000-1-iii-a-2-i-repayment-plan-agreement-15-day-delivery` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-workout **Operative duty (lender voice):** > [LENDER] must provide the Borrower with the Repayment Plan Agreement > at least 15 Days before the date the first installment is due. The > Borrower is not required to sign and return the Repayment Plan > Agreement. **Compliance obligation:** > For every Repayment Plan Agreement, can [LENDER] evidence delivery to the Borrower at least 15 Days before the first installment due date? **Verbatim regulator text:** ``` The Mortgagee must provide the Borrower with the Repayment Plan Agreement ``` _Authority_: HUD Handbook 4000.1 III.A.2.i.ii(A)(4) — Repayment Plan Agreement _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # HUD Handbook 4000.1 III.A.2.j — Home Disposition Options **Register slug:** `hud-4000-1-iii-a-2-j` **Obligation count:** 3 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.j. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.j.i — Home Disposition Options Standard **Obligation ID:** `hud-4000-1-iii-a-2-j-review-for-home-disposition` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-evaluation **Operative duty (lender voice):** > [LENDER] must review Borrowers for Home Disposition Options who are > unable to sustain the Mortgage with the assistance of a Loss > Mitigation Home Retention Option. **Compliance obligation:** > For every Borrower unable to sustain the FHA-insured Mortgage with a Home Retention Option, can [LENDER] evidence a documented review for the Home Disposition Options (PFS / DIL)? **Verbatim regulator text:** ``` The Mortgagee must review Borrowers for Home Disposition Options who are unable to ``` _Authority_: HUD Handbook 4000.1 III.A.2.j.i — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.j.i — Notice of Foreclosure-Avoidance Sale Options **Obligation ID:** `hud-4000-1-iii-a-2-j-notify-borrower-avoid-foreclosure` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-evaluation **Operative duty (lender voice):** > [LENDER] must notify the Borrower that they may be able to avoid > foreclosure by selling their home with a traditional sale or a PFS > Option. **Compliance obligation:** > For every FHA-insured Mortgage being reviewed for Home Disposition Options, can [LENDER] evidence notice to the Borrower that they may avoid foreclosure via a traditional sale or PFS Option? **Verbatim regulator text:** ``` The Mortgagee must notify the Borrower that they may be able to avoid foreclosure by ``` _Authority_: HUD Handbook 4000.1 III.A.2.j.i — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.j.i — Re-Review on Financial Improvement During PFS/DIL **Obligation ID:** `hud-4000-1-iii-a-2-j-additional-retention-review-on-financial-improvement` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-borrower-update **Operative duty (lender voice):** > If the Borrower advises that their financial situation has improved > during the PFS or DIL process and wants to retain the Property, > [LENDER] must review the Borrower for one additional Loss Mitigation > Home Retention Option. **Compliance obligation:** > For every Borrower in a PFS or DIL process who advised that their financial situation has improved and wants to retain the Property, can [LENDER] evidence a documented review for one additional Loss Mitigation Home Retention Option? **Verbatim regulator text:** ``` If the Borrower advises that their financial situation has improved during the PFS or DIL ``` _Authority_: HUD Handbook 4000.1 III.A.2.j.i — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # HUD Handbook 4000.1 III.A.2.k — Loss Mitigation Incentives and Title Reimbursement **Register slug:** `hud-4000-1-iii-a-2-k` **Obligation count:** 2 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.k. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.k.i — Loss Mitigation Incentives, 60-Day Claim Window **Obligation ID:** `hud-4000-1-iii-a-2-k-incentive-claim-60-day-filing` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-completion **Operative duty (lender voice):** > For [LENDER] to claim an incentive for completion of a permanent Loss > Mitigation Option, the correct and complete claim must be submitted > to HUD within 60 Days of the execution date of the Permanent Home > Retention Option or Home Disposition Option. **Compliance obligation:** > For every incentive claim filed for a permanent FHA Loss Mitigation Option, can [LENDER] evidence that the correct and complete claim was submitted to HUD within 60 Days of the execution date of the option? **Verbatim regulator text:** ``` • the correct and complete claim is submitted to HUD within 60 Days of the ``` _Authority_: HUD Handbook 4000.1 III.A.2.k.i — Loss Mitigation Incentives _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z **Consequence of non-compliance:** Incentive denial — failure to submit within 60 Days disqualifies the claim for the incentive payment. --- #### HUD Handbook 4000.1 III.A.2.k.ii — Reimbursement for Loan Modification Title Search and Recordation **Obligation ID:** `hud-4000-1-iii-a-2-k-title-reimbursement-120-day-filing` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loan-modification-execution **Operative duty (lender voice):** > For [LENDER] to claim the up-to-$250 reimbursement for fees associated > with title search, title policy, and/or recordation on an executed > Loan Modification, the correct and complete claim for $250 must be > submitted to HUD within 120 Days of the execution date of the Loan > Modification (or Loan Modification as part of a Combination Loan > Modification and Partial Claim). **Compliance obligation:** > For every title-search / title-policy / recordation reimbursement claim filed on a Loan Modification, can [LENDER] evidence submission of a correct and complete claim to HUD within 120 Days of the Loan Modification execution date? **Verbatim regulator text:** ``` • the correct and complete claim for $250 is submitted to HUD within 120 Days of ``` _Authority_: HUD Handbook 4000.1 III.A.2.k.ii — Reimbursement for Loan Modification Title Search and Recordation _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z **Consequence of non-compliance:** Reimbursement denial — failure to submit within 120 Days disqualifies the claim for the $250 reimbursement. --- --- # HUD Handbook 4000.1 III.A.2.l — Presidentially-Declared Major Disaster Areas **Register slug:** `hud-4000-1-iii-a-2-l` **Obligation count:** 3 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.l. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.l.i — Disaster Declarations **Obligation ID:** `hud-4000-1-iii-a-2-l-implement-pdmda-procedures` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-disaster-declaration **Operative duty (lender voice):** > Whenever the President declares a major disaster, [LENDER] must > implement the procedures set forth in this section for each > designated area that is eligible for federal disaster assistance, > designated for public assistance, individual assistance, or both, > unless otherwise specified. **Compliance obligation:** > For every Presidentially-declared major disaster affecting FHA-insured Mortgages in [LENDER]'s portfolio, can [LENDER] evidence implementation of the PDMDA procedures (disaster loss-mit assistance, moratorium notice, monitoring, and disaster-option offers) for each designated area? **Verbatim regulator text:** ``` Whenever the President declares a major disaster, the Mortgagee must implement the ``` _Authority_: HUD Handbook 4000.1 III.A.2.l.i — Disaster Declarations _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.l.ii(A) — PDMDA Moratorium and Outreach **Obligation ID:** `hud-4000-1-iii-a-2-l-contact-borrower-in-pdmda` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-pdmda-loan **Operative duty (lender voice):** > [LENDER] must attempt to contact Borrowers whose Property is located > in a PDMDA to notify the Borrower that disaster loss mitigation > assistance is available. **Compliance obligation:** > For every FHA-insured Mortgage with a Property located in a PDMDA, can [LENDER] evidence an attempt to contact the Borrower to notify them that disaster loss mitigation assistance is available? **Verbatim regulator text:** ``` Mortgagees must attempt to contact Borrowers whose Property is located in a ``` _Authority_: HUD Handbook 4000.1 III.A.2.l.ii(A) — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.l.ii(C) — Hazard or Flood Insurance Settlement **Obligation ID:** `hud-4000-1-iii-a-2-l-no-foreclosure-that-jeopardizes-insurance-recovery` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-pdmda-loan-with-insurance-claim **Operative duty (lender voice):** > [LENDER] must take no action to initiate or complete foreclosure > proceedings, after expiration of a disaster-related foreclosure > moratorium, if such action will jeopardize the full recovery of a > hazard or flood insurance settlement. **Compliance obligation:** > For every PDMDA-affected FHA-insured Mortgage where a hazard or flood insurance settlement is pending, can [LENDER] evidence that no action was taken to initiate or complete foreclosure that would jeopardize the full recovery of that settlement? **Verbatim regulator text:** ``` The Mortgagee must take no action to initiate or complete foreclosure proceedings, ``` _Authority_: HUD Handbook 4000.1 III.A.2.l.ii(C) — Hazard or Flood Insurance Settlement _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # 24 CFR §203.500 — Mortgage servicing generally **Register slug:** `fha-24cfr-203.500` **Obligation count:** 3 ## Register description 24 CFR §203.500 establishes the general FHA single-family servicing framework under Part 203 Subpart C. ## Obligations #### 24 CFR §203.500 — Mandatory compliance with Subpart C servicing practices **Obligation ID:** `fha-24cfr-203.500-subpart-c-compliance-required` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-fha-serviced-loan **Operative duty (lender voice):** > [LENDER], as an FHA-approved mortgagee servicing FHA-insured mortgages, > must comply with the servicing practices specified in 24 CFR Part 203 > Subpart C; failure to comply is not a basis for denial of insurance > benefits but is cause for imposition of a civil money penalty > (including a penalty under §30.35(c)(2)) or withdrawal of HUD's > approval of [LENDER]. [LENDER] shall not commence foreclosure or > acquire title until the Subpart C requirements have been followed. **Compliance obligation:** > Can [LENDER] evidence (i) that it follows the Subpart C FHA single-family servicing practices on every FHA-insured loan it services, and (ii) that no foreclosure was commenced and no title was acquired before the applicable §203.500 Subpart C requirements were satisfied? **Verbatim regulator text:** ``` This subpart identifies servicing practices of lending institutions that HUD considers acceptable for mortgages insured by HUD. Failure to comply with this subpart shall not be a basis for denial of insurance benefits, but failure to comply will be cause for imposition of a civil money penalty, including a penalty under § 30.35(c)(2) , or withdrawal of HUD's approval of a mortgagee . It is the intent of the Department that no mortgagee shall commence foreclosure or acquire title to a property until the requirements of this subpart have been followed. ``` _Authority_: 24 CFR §203.500 _Source_: _Snapshot_: `32afd0af85c1c567` _Fetched_: 2026-05-22T18:52:44Z **Consequence of non-compliance:** civil money penalty (including §30.35(c)(2)) or withdrawal of HUD mortgagee approval --- #### 24 CFR §203.500 — No foreclosure / title acquisition until Subpart C followed **Obligation ID:** `fha-24cfr-203.500-foreclosure-and-title-precondition` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-fha-foreclosure-or-title-acquisition **Operative duty (lender voice):** > [LENDER], as an FHA-approved mortgagee servicing FHA-insured > mortgages, shall not commence foreclosure or acquire title to a > property until the requirements of 24 CFR Part 203 Subpart C have > been followed. This is the Department of HUD's stated intent in > §203.500 and operates as a procedural precondition on foreclosure / > title-acquisition activity. **Compliance obligation:** > For every FHA-insured loan [LENDER] services where foreclosure has been commenced or title has been acquired, can [LENDER] evidence that the applicable Part 203 Subpart C servicing-practice requirements were completed before foreclosure was commenced or title acquired? **Verbatim regulator text:** ``` It is the intent of the Department that no mortgagee shall commence foreclosure or acquire title to a property until the requirements of this subpart have been followed. ``` _Authority_: 24 CFR §203.500 _Source_: _Snapshot_: `32afd0af85c1c567` _Fetched_: 2026-05-22T18:52:44Z --- #### 24 CFR §203.500 — Consequence of noncompliance: civil money penalty / mortgagee-approval withdrawal **Obligation ID:** `fha-24cfr-203.500-civil-money-penalty-consequence` **Workflow phase:** servicing **Owner role:** compliance_officer **Cadence:** ongoing **Operative duty (lender voice):** > Failure by [LENDER] to comply with FHA Part 203 Subpart C servicing > practices is not a basis for denial of insurance benefits but is > cause for imposition of a civil money penalty (including a penalty > under §30.35(c)(2)) or withdrawal of HUD's approval of [LENDER] as > an FHA mortgagee. [LENDER]'s compliance-management framework must > treat Subpart C noncompliance as a HUD-enforcement-tier finding > rather than merely an insurance-benefit risk. **Compliance obligation:** > Can [LENDER] evidence that its compliance-management framework treats §203.500 Subpart C noncompliance as a HUD-enforcement-tier exposure (civil money penalty under §30.35(c)(2) or mortgagee-approval withdrawal), and that findings are tracked, root-caused, and remediated accordingly? **Verbatim regulator text:** ``` Failure to comply with this subpart shall not be a basis for denial of insurance benefits, but failure to comply will be cause for imposition of a civil money penalty, including a penalty under § 30.35(c)(2) , or withdrawal of HUD's approval of a mortgagee . ``` _Authority_: 24 CFR §203.500 _Source_: _Snapshot_: `32afd0af85c1c567` _Fetched_: 2026-05-22T18:52:44Z **Consequence of non-compliance:** civil money penalty (including §30.35(c)(2)) or withdrawal of HUD mortgagee approval --- --- # 24 CFR §203.604 — Contact with the mortgagor **Register slug:** `fha-24cfr-203.604` **Obligation count:** 5 ## Register description 24 CFR §203.604 requires the FHA-approved mortgagee to conduct (or make a reasonable effort to arrange) a meeting with the delinquent mortgagor before three full monthly installments are unpaid and at least 30 days before foreclosure is commenced. ## Obligations #### 24 CFR §203.604(a)(1) — Pre-foreclosure meeting with delinquent mortgagor **Obligation ID:** `fha-24cfr-203.604-a1-pre-foreclosure-meeting` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-delinquent-fha-loan **Operative duty (lender voice):** > For FHA mortgages insured pursuant to Part 203 (other than those insured > on Indian Land under section 248 of the National Housing Act), [LENDER] > must conduct a meeting with the mortgagor — or make a reasonable > effort to arrange such a meeting — before three full monthly > installments due on the mortgage are unpaid and at least 30 days > before foreclosure is commenced (or at least 30 days before assignment > is requested for Hawaiian-homelands loans under section 247 of the > National Housing Act). The meeting must be conducted in a manner > determined by the Secretary. **Compliance obligation:** > For every FHA-insured loan that becomes seriously delinquent, can [LENDER] evidence either (a) a §203.604(a)(1) meeting with the mortgagor conducted in the manner determined by the Secretary, or (b) a reasonable-effort attempt to arrange one, before three full monthly installments are unpaid and at least 30 days before foreclosure is commenced? **Verbatim regulator text:** ``` (1) The mortgagee must conduct a meeting with the mortgagor, or make a reasonable effort to arrange such a meeting, before three full monthly installments due on the mortgage are unpaid and at least 30 days before foreclosure is commenced, or at least 30 days before assignment is requested if the mortgage is insured on Hawaiian homelands pursuant to section 247 of the National Housing Act . The meeting with the mortgagor must be conducted in a manner as determined by the Secretary . ``` _Authority_: 24 CFR §203.604(a)(1) _Source_: _Snapshot_: `a253b3a4bb1532fd` _Fetched_: 2026-05-22T18:52:44Z --- #### 24 CFR §203.604(a)(3) — Reasonable-effort floor: at least two verifiable contact attempts **Obligation ID:** `fha-24cfr-203.604-a3-reasonable-effort-two-attempts` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-delinquent-fha-loan **Operative duty (lender voice):** > For non-Indian-Land FHA mortgages, [LENDER]'s "reasonable effort" to > arrange a meeting with the mortgagor under §203.604(a) shall consist > of, at a minimum, two verifiable attempts to contact the mortgagor > utilizing methods determined by the Secretary. **Compliance obligation:** > Where [LENDER] relies on the reasonable-effort prong of §203.604(a), can [LENDER] evidence at least two verifiable attempts to contact the mortgagor using methods determined by the Secretary? **Verbatim regulator text:** ``` (3) A reasonable effort to arrange a meeting with the mortgagor shall consist of, at a minimum, two verifiable attempts to contact the mortgagor utilizing methods determined by the Secretary . ``` _Authority_: 24 CFR §203.604(a)(3) _Source_: _Snapshot_: `a253b3a4bb1532fd` _Fetched_: 2026-05-22T18:52:44Z --- #### 24 CFR §203.604(b)(1) — Face-to-face meeting for Indian Land mortgages **Obligation ID:** `fha-24cfr-203.604-b1-indian-land-face-to-face` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-delinquent-indian-land-loan **Operative duty (lender voice):** > For mortgages insured on Indian Land pursuant to section 248 of the > National Housing Act, [LENDER] must conduct a face-to-face meeting > with the mortgagor — or make a reasonable effort to arrange such a > meeting — before three full monthly installments due on the mortgage > are unpaid and at least 30 days before assignment is requested. **Compliance obligation:** > For every section-248 Indian Land FHA-insured mortgage that becomes seriously delinquent, can [LENDER] evidence either a face-to-face meeting with the mortgagor or a reasonable-effort attempt to arrange one before three full monthly installments are unpaid and at least 30 days before assignment is requested? **Verbatim regulator text:** ``` (1) The mortgagee must conduct a face-to-face meeting with the mortgagor, or make a reasonable effort to arrange such a meeting, before three full monthly installments due on the mortgage are unpaid and at least 30 days before assignment is requested. ``` _Authority_: 24 CFR §203.604(b)(1) _Source_: _Snapshot_: `a253b3a4bb1532fd` _Fetched_: 2026-05-22T18:52:44Z --- #### 24 CFR §203.604(b)(4) — Mandatory disclosures to mortgagor (Indian Land) **Obligation ID:** `fha-24cfr-203.604-b4-indian-land-mortgagor-disclosures` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-delinquent-indian-land-loan **Operative duty (lender voice):** > For section-248 Indian Land mortgages, in addition to attempting the > face-to-face meeting, [LENDER] must also (i) inform the mortgagor that > HUD will make information regarding the status and payment history of > the loan available to credit bureaus and prospective creditors; (ii) > inform the mortgagor of other available assistance, if any; and (iii) > inform the mortgagor of the names and addresses of HUD officials to > whom further communications may be addressed. **Compliance obligation:** > For every section-248 Indian Land FHA loan that becomes delinquent, can [LENDER] evidence delivery of the §203.604(b)(4) disclosures — (i) HUD credit-bureau/creditor sharing, (ii) other available assistance, and (iii) HUD-official contact information — to the mortgagor? **Verbatim regulator text:** ``` (4) The mortgagee must also: ``` _Authority_: 24 CFR §203.604(b)(4) _Source_: _Snapshot_: `a253b3a4bb1532fd` _Fetched_: 2026-05-22T18:52:44Z --- #### 24 CFR §203.604(b)(4) — Mandatory disclosures to mortgagor (Indian Land) — enumerated items (chapeau recall fix) **Obligation ID:** `fha-24cfr-203.604-b4-indian-land-mortgagor-disclosures-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 24 CFR §203.604(b)(4) — Mandatory disclosures to mortgagor (Indian Land), dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (i) Inform the mortgagor that HUD will make information regarding the status and payment history of the mortgagor's loan available to credit bureaus and prospective creditors; (ii) Inform the mortgagor of other available assistance, if any; and (iii) Inform the mortgagor of the names and addresses of HUD officials to whom further communications may be addressed. [ 89 FR 63098 , Aug. 2, 2024] National Housing Act CFR Toolbox Law about... ``` _Authority_: 24 CFR §203.604(b)(4) _Source_: _Snapshot_: `a253b3a4bb1532fd` _Fetched_: 2026-05-22T18:52:44Z --- --- # HUD Mortgagee Letter 2024-02 — Payment Supplement **Register slug:** `hud-ml-2024-02` **Obligation count:** 3 ## Register description HUD ML 2024-02 establishes the Payment Supplement loss mitigation option, combining a standalone Partial Claim to bring the Mortgage current with a new Monthly Principal Reduction (MoPR) for a three-year period, and establishes related servicing-transfer responsibilities and SFDMS reporting requirements for Mortgages in a Payment Supplement Period. ## Obligations #### HUD ML 2024-02 — Laws and Requirements Applicable to Mortgage Servicing (III.A.1.a.ii(A)) **Obligation ID:** `hud-ml-2024-02-servicing-laws-compliance` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** continuous **Operative duty (lender voice):** > [LENDER], as an FHA-approved Mortgagee servicing FHA-insured Mortgages, > must comply with all laws, rules, and requirements applicable to mortgage > servicing, including full compliance with the applicable requirements > under the purview of the Consumer Financial Protection Bureau (CFPB) > (including RESPA and TILA), and, if applicable, Ginnie Mae's > mortgage-backed securities requirements. FHA requirements that are more > stringent or restrictive than applicable law (as set forth in Handbook > 4000.1) override the lesser standard. **Compliance obligation:** > Can [LENDER] evidence that its FHA mortgage-servicing program operates in full compliance with CFPB-administered requirements (RESPA, TILA), Ginnie Mae MBS requirements where applicable, and the more-stringent FHA requirements in Handbook 4000.1? **Verbatim regulator text:** ``` Mortgagees must comply with all laws, rules, and requirements applicable to mortgage servicing, including full compliance with the applicable requirements under the purview of the Consumer Financial Protection Bureau (CFPB), including the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), and, if applicable, Ginnie Mae’s mortgage-backed securities requirements. ``` _Authority_: HUD ML 2024-02 — III.A.1.a.ii(A) _Source_: _Snapshot_: `cc5f3927701cb91d` _Fetched_: 2026-05-22T19:54:43Z --- #### HUD ML 2024-02 — SFDMS Default Reporting: Types of Mortgages to Report (III.A.2.h.ii(B)(1)) **Obligation ID:** `hud-ml-2024-02-sfdms-payment-supplement-reporting` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** monthly **Operative duty (lender voice):** > Each month, [LENDER] must report Default servicing activities through > HUD's Single Family Default Monitoring System (SFDMS) for all Mortgages > that are 30, 60, and 90 Days or more in Default, and for all Mortgages > in a Payment Supplement Period, as of the last Day of the month. **Compliance obligation:** > For each monthly SFDMS reporting cycle, can [LENDER] demonstrate that it reported Default servicing activities for every FHA-insured Mortgage that was 30, 60, or 90+ Days delinquent, and for every Mortgage in a Payment Supplement Period, as of the last Day of the month? **Verbatim regulator text:** ``` Each month, the Mortgagee must report Default servicing activities for all Mortgages that are 30, 60, and 90 Days or more in Default and all Mortgages in a Payment Supplement Period, as of the last Day of the month. ``` _Authority_: HUD ML 2024-02 — III.A.2.h.ii(B)(1) _Source_: _Snapshot_: `cc5f3927701cb91d` _Fetched_: 2026-05-22T19:54:43Z --- #### HUD ML 2024-02 — Responsibility during Transfers of Servicing Rights (III.A.1.b.i(B)) **Obligation ID:** `hud-ml-2024-02-servicing-transfer-payment-supplement` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-servicing-transfer **Operative duty (lender voice):** > Where [LENDER] is the Transferee Servicing Mortgagee on a Transfer Date, > [LENDER] must ensure transfer of any outstanding Payment Supplement > Account and associated servicing records, and assume responsibility for > all servicing actions associated with the Payment Supplement — including > accounting of funds held in the Payment Supplement Account, administration > of the Borrower's Payment Supplement, obtaining the complete Payment > Supplement files, and obtaining any outstanding funds in the Payment > Supplement Account. **Compliance obligation:** > For every servicing-rights transfer involving an FHA-insured Mortgage with an active Payment Supplement, can [LENDER] (as Transferee Servicing Mortgagee) evidence transfer of the Payment Supplement Account, associated servicing records, complete Payment Supplement files, and outstanding Payment Supplement Account funds on or about the Transfer Date? **Verbatim regulator text:** ``` The Transferee Servicing Mortgagee must also ensure transfer of any outstanding Payment Supplement Account and associated servicing records. ``` _Authority_: HUD ML 2024-02 — III.A.1.b.i(B) _Source_: _Snapshot_: `cc5f3927701cb91d` _Fetched_: 2026-05-22T19:54:43Z --- --- # HUD Mortgagee Letter 2024-08 **Register slug:** `hud-ml-2024-08` **Obligation count:** 2 ## Register description HUD Mortgagee Letter 2024-08. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2024-08 — FHA-Insured Forward Mortgages: Extension of Foreclosure Moratorium for Maui County, Hawaii **Obligation ID:** `hud-ml-2024-08-forward-mortgage-moratorium` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-affected-loan **Operative duty (lender voice):** > For FHA-insured Single Family forward mortgages secured by Properties > located in Maui County, Hawaii, [LENDER] must observe the extended > foreclosure moratorium through August 4, 2024, applying both to the > initiation of new foreclosures and to the completion of foreclosures > already in process; first-legal-action deadlines and Reasonable Diligence > Time Frames are extended by 180 Days from August 4, 2024. **Compliance obligation:** > For every FHA-insured forward Mortgage with subject Property in Maui County, Hawaii, can [LENDER] evidence that no foreclosure initiation or completion occurred during the moratorium period (through August 4, 2024) and that first-legal-action / Reasonable Diligence Time Frame deadlines were extended by 180 Days from August 4, 2024? **Verbatim regulator text:** ``` Properties located in Maui County, Hawaii and secured by FHA-insured Single Family forward mortgages are subject to an extended foreclosure moratorium through August 4, 2024. The moratorium applies to the initiation of foreclosures and to the completion of foreclosures in process. Deadlines for the first legal action and Reasonable Diligence Time Frame are extended by 180 Days from August 4, 2024. ``` _Authority_: HUD ML 2024-08 — FHA-Insured Forward Mortgages _Source_: _Snapshot_: `aaaa0ffbdea217b5` _Fetched_: 2026-05-22T19:54:44Z --- #### HUD ML 2024-08 — HECM Foreclosure Moratorium for Maui County, Hawaii **Obligation ID:** `hud-ml-2024-08-hecm-moratorium` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-affected-loan **Operative duty (lender voice):** > For FHA-insured HECMs secured by Properties located in Maui County, > Hawaii, [LENDER] must observe a moratorium on foreclosures through August > 4, 2024 — but only where the HECM is Due and Payable for reasons other > than the death of the last remaining Borrower and is not subject to a > Deferral Period — applying to both the initiation of foreclosures and > foreclosures already in process. **Compliance obligation:** > For every FHA-insured HECM with subject Property in Maui County, Hawaii that became Due and Payable for reasons other than death of the last remaining Borrower (and was not subject to a Deferral Period), can [LENDER] evidence that no foreclosure initiation or completion occurred during the moratorium period (through August 4, 2024)? **Verbatim regulator text:** ``` The Mortgagee must observe a moratorium on foreclosures of FHA-insured HECMs secured by Properties located in Maui County, Hawaii through August 4, 2024. ``` _Authority_: HUD ML 2024-08 — HECM Foreclosure Moratorium _Source_: _Snapshot_: `aaaa0ffbdea217b5` _Fetched_: 2026-05-22T19:54:44Z --- --- # HUD Mortgagee Letter 2024-15 **Register slug:** `hud-ml-2024-15` **Obligation count:** 2 ## Register description HUD Mortgagee Letter 2024-15. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2024-15 — FHA-Insured Forward Mortgages: Extension of Foreclosure Moratorium for Maui County, Hawaii **Obligation ID:** `hud-ml-2024-15-forward-mortgage-moratorium` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-affected-loan **Operative duty (lender voice):** > For FHA-insured Single Family forward mortgages secured by Properties > located in Maui County, Hawaii, [LENDER] must observe the extended > foreclosure moratorium through January 1, 2025, applying both to the > initiation of new foreclosures and to the completion of foreclosures > already in process; first-legal-action deadlines and Reasonable Diligence > Time Frames are extended by 180 Days from January 1, 2025. **Compliance obligation:** > For every FHA-insured forward Mortgage with subject Property in Maui County, Hawaii, can [LENDER] evidence that no foreclosure initiation or completion occurred during the moratorium period (through January 1, 2025) and that first-legal-action / Reasonable Diligence Time Frame deadlines were extended by 180 Days from January 1, 2025? **Verbatim regulator text:** ``` Properties located in Maui County, Hawaii and secured by FHA-insured Single Family forward mortgages are subject to an extended foreclosure moratorium through January 1, 2025. The moratorium applies to the initiation of foreclosures and to the completion of foreclosures in process. Deadlines for the first legal action and Reasonable Diligence Time Frame are extended by 180 Days from January 1, 2025. ``` _Authority_: HUD ML 2024-15 — FHA-Insured Forward Mortgages _Source_: _Snapshot_: `c561f8c5edb51360` _Fetched_: 2026-05-22T19:54:47Z --- #### HUD ML 2024-15 — HECM Foreclosure Moratorium for Maui County, Hawaii **Obligation ID:** `hud-ml-2024-15-hecm-moratorium` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-affected-loan **Operative duty (lender voice):** > For FHA-insured HECMs secured by Properties located in Maui County, > Hawaii, [LENDER] must observe a moratorium on foreclosures through > January 1, 2025 — but only where the HECM is Due and Payable for reasons > other than the death of the last remaining Borrower and is not subject > to a Deferral Period — applying to both the initiation of foreclosures > and foreclosures already in process. **Compliance obligation:** > For every FHA-insured HECM with subject Property in Maui County, Hawaii that became Due and Payable for reasons other than death of the last remaining Borrower (and was not subject to a Deferral Period), can [LENDER] evidence that no foreclosure initiation or completion occurred during the moratorium period (through January 1, 2025)? **Verbatim regulator text:** ``` The Mortgagee must observe a moratorium on foreclosures of FHA-insured HECMs secured by Properties located in Maui County, Hawaii through January 1, 2025. ``` _Authority_: HUD ML 2024-15 — HECM Foreclosure Moratorium _Source_: _Snapshot_: `c561f8c5edb51360` _Fetched_: 2026-05-22T19:54:47Z --- --- # HUD Mortgagee Letter 2024-17 **Register slug:** `hud-ml-2024-17` **Obligation count:** 2 ## Register description HUD Mortgagee Letter 2024-17. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2024-17 — Optional Interim Exception for Nonjudicial Foreclosures (b) Standard **Obligation ID:** `hud-ml-2024-17-sip-submission-standard` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-foreclosure **Operative duty (lender voice):** > Where [LENDER] elects to use this optional interim procedure to request > release of a subordinate Secretary-held lien following a nonjudicial > foreclosure sale, [LENDER] may only do so where (i) the nonjudicial > foreclosure sale resulted in no Surplus Funds and (ii) nonjudicial is > the Preferred Method of Foreclosure for the state. If the Property is > subject to federal non-Secretary-held liens, [LENDER] must comply with > applicable law for those federal liens, including proceeding with a > judicial foreclosure if required. **Compliance obligation:** > For every request [LENDER] submitted under ML 2024-17's optional interim procedure to release a subordinate Secretary-held lien, can [LENDER] evidence (i) that the nonjudicial foreclosure sale produced no Surplus Funds, (ii) that nonjudicial was the state's Preferred Method of Foreclosure, and (iii) that compliance with applicable law was maintained for any federal non-Secretary-held liens? **Verbatim regulator text:** ``` Mortgagees may only request release of a subordinate Secretary-held lien where a nonjudicial foreclosure sale resulted in no Surplus Funds where nonjudicial is the Preferred Method of Foreclosure. ``` _Authority_: HUD ML 2024-17 — Optional Interim Exception (b) Standard _Source_: _Snapshot_: `9837ce0b1b5cee8c` _Fetched_: 2026-05-22T19:54:51Z --- #### HUD ML 2024-17 — Optional Interim Exception (c) Required Documentation **Obligation ID:** `hud-ml-2024-17-claim-file-retention` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-foreclosure **Operative duty (lender voice):** > Where [LENDER] uses the ML 2024-17 optional interim procedure to request > release of a subordinate Secretary-held lien, [LENDER] must retain > documentation of the information submitted to HUD through SIP in the > claim file for the affected Mortgage. **Compliance obligation:** > For every Mortgage where [LENDER] requested release of a subordinate Secretary-held lien via SIP under ML 2024-17, can [LENDER] produce from the claim file documentation of the information submitted to HUD through SIP (FHA Case Number, sale date, bid amounts, foreclosure attorney details, winning bidder type, method of foreclosure, no-Surplus-Funds certification)? **Verbatim regulator text:** ``` The Mortgagee must retain documentation of the information submitted to HUD through SIP in their claim file. ``` _Authority_: HUD ML 2024-17 — Optional Interim Exception (c) Required Documentation _Source_: _Snapshot_: `9837ce0b1b5cee8c` _Fetched_: 2026-05-22T19:54:51Z --- --- # HUD Mortgagee Letter 2024-24 **Register slug:** `hud-ml-2024-24` **Obligation count:** 2 ## Register description HUD Mortgagee Letter 2024-24. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2024-24 — Alternative Interim Procedures: Early Default Intervention Interview Standard (III.A.2.h.xii(A)) **Obligation ID:** `hud-ml-2024-24-default-interview-by-61st-day` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-delinquent-loan **Operative duty (lender voice):** > Under the alternative interim procedures (January 1, 2025 through June > 30, 2025), [LENDER] must have an interview with the Borrower — or make > a reasonable effort to arrange an interview — no later than the 61st Day > of delinquency, unless the Borrower is exempt; [LENDER] may conduct the > interview face-to-face or using alternative communication methods > (phone, email, video calling services, or other conferencing technology). **Compliance obligation:** > For every FHA-insured Mortgage in default during the interim period (January 1, 2025 — June 30, 2025), can [LENDER] evidence either (a) an interview with the Borrower conducted by the 61st Day of delinquency or (b) a documented reasonable-effort attempt to arrange the interview, OR documentation of why the Borrower was exempt? **Verbatim regulator text:** ``` The Mortgagee must have an interview with the Borrower or make a reasonable effort to arrange an interview no later than the 61st Day of delinquency, unless exempt. ``` _Authority_: HUD ML 2024-24 — III.A.2.h.xii(A) _Source_: _Snapshot_: `6e7e6506e45043e3` _Fetched_: 2026-05-22T19:54:54Z --- #### HUD ML 2024-24 — Early Default Intervention Interview Required Documentation (III.A.2.h.xii(B)) **Obligation ID:** `hud-ml-2024-24-servicing-file-documentation` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-delinquent-loan **Operative duty (lender voice):** > For each Borrower in default during the alternative-interim-procedure > period, [LENDER] must document in the servicing file (i) the reason the > meeting is not required, if exempt; (ii) the dates and methods of its > attempts at arranging an interview; and (iii) the date of its interview > with the Borrower. **Compliance obligation:** > For every FHA-insured Mortgage that became delinquent during the interim period, can [LENDER] retrieve from the servicing file (a) the exemption reason where applicable, (b) the dates and methods of arrangement attempts, and (c) the date of the actual interview with the Borrower? **Verbatim regulator text:** ``` The Mortgagee must document in the servicing file: ``` _Authority_: HUD ML 2024-24 — III.A.2.h.xii(B) _Source_: _Snapshot_: `6e7e6506e45043e3` _Fetched_: 2026-05-22T19:54:54Z --- --- # HUD Mortgagee Letter 2024-25 **Register slug:** `hud-ml-2024-25` **Obligation count:** 2 ## Register description HUD Mortgagee Letter 2024-25. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2024-25 — FHA-Insured Forward Mortgages: Extension of Foreclosure Moratorium for Hurricanes Helene and Milton **Obligation ID:** `hud-ml-2024-25-forward-mortgage-moratorium` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-affected-loan **Operative duty (lender voice):** > For FHA-insured Single Family forward mortgages secured by Properties > located in FEMA-designated disaster areas for Hurricanes Helene and > Milton (across Florida, Georgia, North Carolina, South Carolina, > Tennessee, and Virginia per the FEMA Declarations enumerated in ML > 2024-25), [LENDER] must observe a moratorium on foreclosure through > April 11, 2025, applying both to the initiation of new foreclosures and > to the completion of foreclosures already in process. **Compliance obligation:** > For every FHA-insured forward Mortgage with subject Property in any of the FEMA-Declaration areas listed in ML 2024-25 (Hurricanes Helene and Milton across FL, GA, NC, SC, TN, VA), can [LENDER] evidence that no foreclosure initiation or completion occurred during the moratorium period (through April 11, 2025) and that first-legal-action / Reasonable Diligence Time Frame deadlines were extended by 180 Days from April 11, 2025? **Verbatim regulator text:** ``` Properties secured by FHA-insured Single Family forward mortgages are subject to a moratorium on foreclosure through April 11, 2025. The moratorium applies to the initiation of foreclosures and to the completion of foreclosures in process for the following FEMA Declarations for Hurricanes Helene ``` _Authority_: HUD ML 2024-25 — FHA-Insured Forward Mortgages _Source_: _Snapshot_: `b3293b7ff0dc948d` _Fetched_: 2026-05-22T19:54:56Z --- #### HUD ML 2024-25 — HECM Foreclosure Moratorium for Hurricanes Helene and Milton **Obligation ID:** `hud-ml-2024-25-hecm-moratorium` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-affected-loan **Operative duty (lender voice):** > For FHA-insured HECMs secured by Properties located in FEMA-designated > disaster areas for Hurricanes Helene and Milton, [LENDER] must observe > a moratorium on foreclosures through April 11, 2025 — but only where > the HECM is Due and Payable for reasons other than the death of the last > remaining Borrower and is not subject to a Deferral Period — applying > to both the initiation of foreclosures and foreclosures already in > process. **Compliance obligation:** > For every FHA-insured HECM with subject Property in any FEMA-Declaration area listed in ML 2024-25 that became Due and Payable for reasons other than death of the last remaining Borrower (and was not subject to a Deferral Period), can [LENDER] evidence that no foreclosure initiation or completion occurred during the moratorium period (through April 11, 2025)? **Verbatim regulator text:** ``` The Mortgagee must observe a moratorium on foreclosures of properties secured by FHA-insured HECMs through April 11, 2025, in the following FEMA Declarations for Hurricanes Helene and Milton: ``` _Authority_: HUD ML 2024-25 — HECM Foreclosure Moratorium _Source_: _Snapshot_: `b3293b7ff0dc948d` _Fetched_: 2026-05-22T19:54:56Z --- --- # HUD Mortgagee Letter 2025-06 **Register slug:** `hud-ml-2025-06` **Obligation count:** 2 ## Register description HUD Mortgagee Letter 2025-06. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2025-06 — Laws and Requirements Applicable to Mortgage Servicing (III.A.1.a.ii(A)) **Obligation ID:** `hud-ml-2025-06-servicing-laws-compliance` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** continuous **Operative duty (lender voice):** > [LENDER], as an FHA-approved Mortgagee servicing FHA-insured Mortgages, > must comply with all laws, rules, and requirements applicable to mortgage > servicing, including full compliance with the applicable requirements > under the purview of the Consumer Financial Protection Bureau (CFPB) > (including RESPA and TILA), and, if applicable, Ginnie Mae's > mortgage-backed securities requirements. **Compliance obligation:** > Can [LENDER] evidence that its FHA mortgage-servicing program operates in full compliance with CFPB-administered requirements (RESPA, TILA) and, where applicable, Ginnie Mae's mortgage-backed securities requirements? **Verbatim regulator text:** ``` Mortgagees must comply with all laws, rules, and requirements applicable to mortgage servicing, including full compliance with the applicable requirements under the purview of the Consumer Financial Protection Bureau (CFPB), including the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), and, if applicable, Ginnie Mae’s mortgage-backed securities requirements. ``` _Authority_: HUD ML 2025-06 — III.A.1.a.ii(A) _Source_: _Snapshot_: `a171c17f1f18edcd` _Fetched_: 2026-05-22T19:55:03Z --- #### HUD ML 2025-06 — Eligibility to Participate in HUD Programs (III.A.2.h.iii(A)) **Obligation ID:** `hud-ml-2025-06-loss-mit-eligibility-verification` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-defaulted-loan **Operative duty (lender voice):** > Before offering any FHA Loss Mitigation Option under the framework > established by ML 2025-06, [LENDER] must verify that the Borrowers are > eligible to participate in HUD's Loss Mitigation Program (no other FHA- > insured real estate beyond stated exceptions; no FHA-claim-paid prior > loan in past 3 years; no debarment/suspension/LDP for relevant > home-retention options; no unresolved delinquent Federal Debt for > Partial Claim / Combination / Payment Supplement). **Compliance obligation:** > For every FHA-insured Mortgage in Default for which [LENDER] offered a Loss Mitigation Option under ML 2025-06, can [LENDER] evidence the Borrower-eligibility verification (no other FHA-insured real estate beyond stated exceptions, no FHA-claim-paid prior loan in past 3 years, no debarment/suspension/LDP for relevant options, no unresolved delinquent Federal Debt for Partial Claim / Combination / Payment Supplement)? **Verbatim regulator text:** ``` The Mortgagee must verify that the Borrowers are eligible to participate in HUD’s Loss Mitigation Program. ``` _Authority_: HUD ML 2025-06 — III.A.2.h.iii(A) _Source_: _Snapshot_: `a171c17f1f18edcd` _Fetched_: 2026-05-22T19:55:03Z --- --- # HUD Mortgagee Letter 2025-12 **Register slug:** `hud-ml-2025-12` **Obligation count:** 3 ## Register description HUD Mortgagee Letter 2025-12. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2025-12 — Eligibility to Participate in HUD Programs (III.A.2.h.iii(A)) **Obligation ID:** `hud-ml-2025-12-loss-mit-eligibility-verification` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-defaulted-loan **Operative duty (lender voice):** > Before offering any FHA Loss Mitigation Option, [LENDER] must verify > that the Borrowers are eligible to participate in HUD's Loss Mitigation > Program. To be eligible, the Borrower may not own other FHA-insured > real estate (except under the stated exceptions); has not been the > Borrower (except through inheritance or as co-signer only) on prior > loans on which an FHA claim has been paid within the past three years; > must not be debarred, suspended, or subject to a HUD LDP for the > relevant home-retention options; and may not have unresolved delinquent > Federal Debt for Partial Claim / Combination / Payment Supplement > options. **Compliance obligation:** > For every FHA-insured Mortgage in Default for which [LENDER] offered a Loss Mitigation Option, can [LENDER] evidence the Borrower-eligibility verification (no other FHA-insured real estate beyond stated exceptions; no FHA-claim-paid prior loan in past 3 years; no debarment/suspension/LDP for relevant options; no unresolved delinquent Federal Debt for Partial Claim / Combination / Payment Supplement)? **Verbatim regulator text:** ``` The Mortgagee must verify that the Borrowers are eligible to participate in HUD’s Loss Mitigation Program. ``` _Authority_: HUD ML 2025-12 — III.A.2.h.iii(A) _Source_: _Snapshot_: `31bf9e2b0c437c70` _Fetched_: 2026-05-22T11:23:07Z --- #### HUD ML 2025-12 — Loss Mitigation Program 90-Day Review (III.A.2.h.iii(B)) **Obligation ID:** `hud-ml-2025-12-loss-mit-90-day-evaluation` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-defaulted-loan **Operative duty (lender voice):** > For each FHA-insured forward Mortgage in Default, [LENDER] must complete > an evaluation of the Defaulted Mortgage for appropriate Loss Mitigation > Options before four monthly installments are due and unpaid, and send > a written Notice to Borrower with the determination of eligibility. **Compliance obligation:** > For every FHA-insured forward Mortgage in Default, can [LENDER] evidence completion of the loss-mit evaluation before four monthly installments became due and unpaid, and delivery of the written Notice to Borrower with the determination of eligibility? **Verbatim regulator text:** ``` A Mortgagee is required to complete an evaluation of a Defaulted Mortgage for appropriate Loss Mitigation Options before four monthly installments are due and unpaid and send a written Notice to Borrower with the determination of eligibility. ``` _Authority_: HUD ML 2025-12 — III.A.2.h.iii(B) 90-Day Review _Source_: _Snapshot_: `31bf9e2b0c437c70` _Fetched_: 2026-05-22T11:23:07Z --- #### HUD ML 2025-12 — Execution of Permanent Home Retention Option Documents (III.A.2.i.iii(D)) **Obligation ID:** `hud-ml-2025-12-permanent-home-retention-documents-15-days` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-workout **Operative duty (lender voice):** > For each Borrower who successfully completes a Trial Payment Plan (TPP) > on a Permanent Home Retention Option (Standalone Partial Claim, > Standalone Loan Modification, Combination Loan Modification and Partial > Claim, or Payment Supplement), [LENDER] must send the Permanent Home > Retention documents to the Borrower within 15 Days from the successful > completion of the TPP. **Compliance obligation:** > For every Borrower who successfully completed a TPP on a Permanent Home Retention Option under the ML 2025-12 framework, can [LENDER] evidence delivery of the Permanent Home Retention documents to the Borrower within 15 Days of TPP completion? **Verbatim regulator text:** ``` The Mortgagee must send the Permanent Home Retention documents to the Borrower within 15 Days from the successful completion of a TPP. ``` _Authority_: HUD ML 2025-12 — III.A.2.i.iii(D) _Source_: _Snapshot_: `31bf9e2b0c437c70` _Fetched_: 2026-05-22T11:23:07Z --- --- # HUD Mortgagee Letter 2025-13 **Register slug:** `hud-ml-2025-13` **Obligation count:** 3 ## Register description HUD Mortgagee Letter 2025-13. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2025-13 — CWCOT Post-Foreclosure Sales Period (III.A.2.s.iii(F)(1)) **Obligation ID:** `hud-ml-2025-13-cwcot-60-day-listing` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-cwcot-sale **Operative duty (lender voice):** > Where [LENDER] (as Mortgagee) utilizes CWCOT post-foreclosure sales > efforts on FHA-insured Mortgages with post-foreclosure sales scheduled > to occur on or after May 30, 2025, [LENDER] must list the Property for > sale to all third parties for a 60-Day period. **Compliance obligation:** > For every CWCOT post-foreclosure sales effort [LENDER] conducted with sale scheduled on or after May 30, 2025, can [LENDER] evidence that the Property was listed for sale to all third parties for a 60-Day period? **Verbatim regulator text:** ``` Mortgagees that utilize the post-foreclosure sales efforts must list theProperty for sale to all third parties for a 60-Day period. ``` _Authority_: HUD ML 2025-13 — III.A.2.s.iii(F)(1) _Source_: _Snapshot_: `3b7d51eccdef167a` _Fetched_: 2026-05-22T19:55:07Z --- #### HUD ML 2025-13 — Conveyance Time Frame if Property Does Not Sell (III.A.2.s.iii(F)(2)(a)) **Obligation ID:** `hud-ml-2025-13-conveyance-30-day` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-cwcot-sale **Operative duty (lender voice):** > Where [LENDER] conducted a CWCOT post-foreclosure sales effort and the > Property did not sell through the post-foreclosure sales efforts, > [LENDER] must convey the Property to HUD within 30 Days of the end of > the post-foreclosure sales period. **Compliance obligation:** > For every CWCOT post-foreclosure sales effort where the Property did not sell, can [LENDER] evidence conveyance of the Property to HUD within 30 Days of the end of the post-foreclosure sales period? **Verbatim regulator text:** ``` If the Property does not sell through the post-foreclosure sales efforts, the Mortgagee must convey the Property to HUD within 30 Days of the end of the post-foreclosure sales period. ``` _Authority_: HUD ML 2025-13 — III.A.2.s.iii(F)(2)(a) _Source_: _Snapshot_: `3b7d51eccdef167a` _Fetched_: 2026-05-22T19:55:07Z --- #### HUD ML 2025-13 — Submission of Claim Form Parts to HUD for CWCOT (IV.A.2.d.iii) **Obligation ID:** `hud-ml-2025-13-claim-form-parts-submission` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-cwcot-claim **Operative duty (lender voice):** > For every Claim Type 06 (CWCOT) claim, [LENDER] must submit Parts A and > B of form HUD-27011 to HUD simultaneously no later than 30 Days after > the earliest of (a) the date [LENDER] acquired good and marketable > title; (b) the date a third party acquired good and marketable title; > (c) the date the Borrower or other party redeemed the Property; (d) the > date the redemption period expires; or (e) such other date as required > by the FHA Commissioner. **Compliance obligation:** > For every Claim Type 06 CWCOT claim, can [LENDER] evidence simultaneous submission of Parts A and B of HUD-27011 within 30 Days of the earliest trigger event (good-and-marketable-title acquisition by Mortgagee or third party, Borrower redemption, redemption-period expiration, or FHA Commissioner deadline)? **Verbatim regulator text:** ``` The Mortgagee must submit Parts A and B simultaneously no later than 30 Days after: ``` _Authority_: HUD ML 2025-13 — IV.A.2.d.iii _Source_: _Snapshot_: `3b7d51eccdef167a` _Fetched_: 2026-05-22T19:55:07Z --- --- # HUD Mortgagee Letter 2025-21 **Register slug:** `hud-ml-2025-21` **Obligation count:** 3 ## Register description HUD Mortgagee Letter 2025-21. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2025-21 — Loss Mitigation Program 90-Day Review (III.A.2.h.iii(B)) **Obligation ID:** `hud-ml-2025-21-90-day-loss-mit-evaluation` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-defaulted-loan **Operative duty (lender voice):** > For each FHA-insured forward Mortgage in Default, [LENDER] must complete > an evaluation of the Defaulted Mortgage for appropriate Loss Mitigation > Options before four monthly installments are due and unpaid, and send a > written Notice to Borrower (III.A.2.h.vi) with the determination of > eligibility. **Compliance obligation:** > For every FHA-insured forward Mortgage in Default, can [LENDER] evidence completion of the loss-mit evaluation before four monthly installments became due and unpaid, and delivery of the written Notice to Borrower with the determination of eligibility? **Verbatim regulator text:** ``` A Mortgagee is required to complete an evaluation of a Defaulted Mortgage for appropriate Loss Mitigation Options before four monthly installments are due and unpaid and send a written Notice to Borrower (III.A.2.h.vi) with the determination of eligibility. ``` _Authority_: HUD ML 2025-21 — III.A.2.h.iii(B) 90-Day Review _Source_: _Snapshot_: `0f41482d77e0986d` _Fetched_: 2026-05-22T19:55:08Z --- #### HUD ML 2025-21 — Execution of Permanent Home Retention Option Documents (III.A.2.i.iii(D)) **Obligation ID:** `hud-ml-2025-21-permanent-home-retention-documents-15-days` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-workout **Operative duty (lender voice):** > For each Borrower who successfully completes a Trial Payment Plan (TPP) > on a Permanent Home Retention Option, [LENDER] must send the Permanent > Home Retention documents to the Borrower within 15 Days from the > successful completion of the TPP. [LENDER] must also cease all > foreclosure related activities upon acceptance of the executed Permanent > Home Retention Option Documents. **Compliance obligation:** > For every Borrower who successfully completed a TPP on a Permanent Home Retention Option, can [LENDER] evidence (a) delivery of the Permanent Home Retention documents to the Borrower within 15 Days of TPP completion and (b) cessation of foreclosure-related activities upon acceptance of the executed documents? **Verbatim regulator text:** ``` The Mortgagee must send the Permanent Home Retention documents to the Borrower within 15 Days from the successful completion of a TPP. ``` _Authority_: HUD ML 2025-21 — III.A.2.i.iii(D) _Source_: _Snapshot_: `0f41482d77e0986d` _Fetched_: 2026-05-22T19:55:08Z --- #### HUD ML 2025-21 — Assumability of FHA-Insured Mortgages (III.A.3.b.i) **Obligation ID:** `hud-ml-2025-21-assumability-no-restrictions` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** continuous **Operative duty (lender voice):** > All FHA-insured Mortgages serviced by [LENDER] are assumable. [LENDER] > must not impose, agree to, or enforce legal restrictions on conveyances > or assumptions after closing except when (a) specifically permitted by > HUD regulations or (b) the restriction had been specified in a junior > lien granted to [LENDER] after settlement. **Compliance obligation:** > For every FHA-insured Mortgage in [LENDER]'s servicing portfolio, can [LENDER] demonstrate that no legal restriction on conveyance or assumption is being imposed, agreed to, or enforced, except where specifically permitted by HUD regulations or specified in a post-settlement junior lien granted to [LENDER]? **Verbatim regulator text:** ``` All FHA-insured Mortgages are assumable. The Mortgagee must not impose, agree to, or enforce legal restrictions on conveyances or assumptions after closing except when: ``` _Authority_: HUD ML 2025-21 — III.A.3.b.i Assumability _Source_: _Snapshot_: `0f41482d77e0986d` _Fetched_: 2026-05-22T19:55:08Z --- --- # FNMA Servicing Guide D1-1 — Requests for the Release of Property and/or Charge-Off of a Mortgage Loan **Register slug:** `fnma-svc-d1-1` **Obligation count:** 2 ## Register description Servicing Guide Chapter D1-1 governs borrower requests for release/partial release of property securing a Fannie Mae mortgage loan. ## Obligations #### FNMA Servicing Guide D1-1-01 — Evaluating a Request for the Release, or Partial Release, of Property Securing a Mortgage Loan **Obligation ID:** `fnma-svc-d1-1-form-236-required-for-release-request` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-event **Operative duty (lender voice):** > To request a review for a release, or partial release, of property > securing a Fannie Mae mortgage loan, the borrower must submit an > Application for Release of Security (Form 236) to [LENDER]. An > application is considered complete when all required documentation and > information, as outlined within the Servicing Guide and Form 236, has > been obtained. When [LENDER] receives a complete application, [LENDER] > must counsel the borrower to consider the costs and benefits of any > action covered by this policy prior to evaluating the request and must > then evaluate each request in accordance with the Guide. **Compliance obligation:** > For every borrower request to release or partially release property securing a Fannie Mae mortgage loan, can [LENDER] evidence receipt of a complete Form 236, pre-evaluation borrower counseling on costs/benefits, and Guide-conforming evaluation? **Verbatim regulator text:** ``` To request a review for a release, or partial release, of property securing a mortgage loan, the borrower must ``` _Authority_: FNMA Servicing Guide D1-1-01 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- #### FNMA Servicing Guide D1-1-01 — Evaluating a Request for the Release, or Partial Release, of Property Securing a Mortgage Loan **Obligation ID:** `fnma-svc-d1-1-texas-50-a-6-escalation` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-event **Operative duty (lender voice):** > With the exception of eminent domain actions that fall within the > policies in the Servicing Guide, all requests related to Texas Section > 50(a)(6) loans must be escalated to Fannie Mae for review and > decisioning; [LENDER] must submit the complete application and all > required documentation to Fannie Mae's SF CPM division. **Compliance obligation:** > For every borrower release-of-security request on a Texas Section 50(a)(6) Fannie Mae mortgage loan (other than an eminent domain action covered by the Guide), can [LENDER] evidence escalation to Fannie Mae's SF CPM division for non-delegated review? **Verbatim regulator text:** ``` that extenuating circumstances exist, the servicer must submit the request to Fannie Mae for a non-delegated ``` _Authority_: FNMA Servicing Guide D1-1-01 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- --- # FNMA Servicing Guide D1-4 — Transfers of Ownership **Register slug:** `fnma-svc-d1-4` **Obligation count:** 2 ## Register description Servicing Guide Chapter D1-4 governs enforcement of the due-on-sale/due-on-transfer provision and exempt transactions. ## Obligations #### FNMA Servicing Guide D1-4.1-01 — Determining Whether a Transfer of Ownership Is Permitted **Obligation ID:** `fnma-svc-d1-4-due-on-sale-investigation` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-event **Operative duty (lender voice):** > When [LENDER] receives a request for a statement of account in > connection with a possible transfer of ownership of a property, or if > [LENDER] learns after the fact that a transfer has occurred, [LENDER] > must review the mortgage loan instruments to determine whether the > mortgage loan is subject to enforcement of the due-on-sale (or > due-on-transfer) provision, investigate any questionable changes to > determine whether a transfer of ownership has occurred, and determine > whether any action needs to be taken to enforce the due-on-sale (or > due-on-transfer) provision. **Compliance obligation:** > For every statement-of-account request or after-the-fact transfer discovery on a Fannie Mae mortgage loan, can [LENDER] evidence review of the loan instruments, investigation of any questionable changes, and a documented enforcement determination for the due-on-sale (or due-on-transfer) provision? **Verbatim regulator text:** ``` Review the mortgage loan instruments to determine whether the mortgage loan is subject to ``` _Authority_: FNMA Servicing Guide D1-4.1-01 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- #### FNMA Servicing Guide D1-4.1-02 — Allowable Exemptions Due to the Type of Transfer **Obligation ID:** `fnma-svc-d1-4-exempt-transactions-no-approval` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-event **Operative duty (lender voice):** > Unless the previous borrower requests a release of liability, [LENDER] > must process exempt transactions (the categories enumerated in > D1-4.1-02, including specified joint-tenant survivorships, junior- > lienholder foreclosures, certain co-borrower transfers, occupant > natural-person transfers, qualifying leasehold interests, certain > subordinate-lien creations, and listed family-member / divorce-decree > / inter vivos trust transfers) without reviewing or approving the > terms of the transfer. **Compliance obligation:** > For every D1-4.1-02 exempt transfer event on a Fannie Mae mortgage loan, can [LENDER] evidence processing without unilateral review/approval of the transfer terms (absent a prior-borrower release-of-liability request)? **Verbatim regulator text:** ``` Unless the previous borrower requests a release of liability, the servicer must process the following exempt ``` _Authority_: FNMA Servicing Guide D1-4.1-02 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- --- # FNMA Servicing Guide D2-1 — Working with a Borrower Who is Facing Default **Register slug:** `fnma-svc-d2-1` **Obligation count:** 2 ## Register description Servicing Guide Chapter D2-1 governs imminent-default evaluation and the prohibition on soliciting current/<30-day-delinquent borrowers. ## Obligations #### FNMA Servicing Guide D2-1-01 — Determining if the Borrower's Mortgage Payment is in Imminent Default **Obligation ID:** `fnma-svc-d2-1-evaluate-imminent-default` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-event **Operative duty (lender voice):** > [LENDER] must consider available workout options when [LENDER] is > notified or otherwise becomes aware of events or factors that are > expected to cause the borrower's monthly payment to be in default > within the next 90 days ("imminent default"). **Compliance obligation:** > For every Fannie Mae mortgage loan where [LENDER] is notified or aware of factors expected to cause default within 90 days, can [LENDER] evidence consideration of available workout options consistent with D2-1-01? **Verbatim regulator text:** ``` The servicer must consider available workout options when the servicer is notified or otherwise becomes aware ``` _Authority_: FNMA Servicing Guide D2-1-01 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- #### FNMA Servicing Guide D2-1-01 — Evaluating a Borrower Facing Imminent Default **Obligation ID:** `fnma-svc-d2-1-no-solicit-current-borrowers` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** continuous **Operative duty (lender voice):** > [LENDER] must not solicit borrowers who are current or less than 30 > days delinquent for a workout option. **Compliance obligation:** > Can [LENDER] evidence that no workout-option solicitation was sent to any Fannie Mae borrower who was current or less than 30 days delinquent at the time of the solicitation? **Verbatim regulator text:** ``` The servicer must not solicit borrowers who are current or less than 30 days delinquent for a workout option. ``` _Authority_: FNMA Servicing Guide D2-1-01 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- --- # FNMA Servicing Guide D2-2 — Requirements for Contacting a Borrower **Register slug:** `fnma-svc-d2-2` **Obligation count:** 5 ## Register description FNMA Servicing Guide D2-2-01 through D2-2-03 govern delinquent- borrower outreach: Quality Right Party Contact (QRPC) achievement requirement, outbound contact timing (begin no later than day 36 of delinquency; every 7 days continuing thereafter), 60-day judicial / 30-day non-judicial pre-foreclosure-sale outbound-contact stop rule, day-20 payment reminder notice rule, and message content requirements for outbound contacts. Fills FNMA Servicing D2-2 gap. ## Obligations #### FNMA Servicing Guide D2-2-01 — Servicer must make every attempt to achieve QRPC **Obligation ID:** `fnma-svc-d2-2-01-must-attempt-qrpc` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** per-delinquency **Operative duty (lender voice):** > [LENDER] (servicer) shall make every attempt to achieve Quality > Right Party Contact (QRPC) with the borrower, co-borrower, or > trusted advisor. The purpose of QRPC is to determine the > delinquency reason, occupancy status, ability to repay, educate > the borrower on workout options, and obtain a commitment to > resolve the delinquency. **Compliance obligation:** > For every delinquent FNMA-owned loan, can [LENDER] evidence (via call logs, outreach records, QRPC achievement flag in servicing system) that every attempt was made to achieve QRPC, and document each QRPC achievement with the 5 required purpose elements covered? **Verbatim regulator text:** ``` The servicer must make every attempt to achieve QRPC. ``` _Authority_: FNMA Servicing Guide D2-2-01 — Achieving Quality Right Party Contact _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Failure to attempt QRPC is a FNMA Servicing Guide breach; reduces workout-option uptake and increases foreclosure risk. --- #### FNMA Servicing Guide D2-2-02 — Begin outbound contact by day 36, continue every 7 days **Obligation ID:** `fnma-svc-d2-2-02-outbound-contact-day-36-every-7-days` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** per-delinquency **Operative duty (lender voice):** > [LENDER] (servicer) shall begin outbound contact attempts no > later than the 36th day of delinquency and shall continue > outbound contact attempts every 7 days until QRPC is achieved > (and/or borrower adheres to a workout agreement), the delinquency > is resolved, a complete Borrower Response Package (BRP) is > received, the borrower has provided a promise to pay (≤30 days), > or QRPC is achieved and the borrower indicates no interest in a > workout option. [LENDER] is authorized but not required to begin > earlier than day 36 (e.g., using behavioral models). **Compliance obligation:** > For every delinquent FNMA loan, can [LENDER] evidence (via servicing-system contact-attempt logs) (a) first outbound contact attempt by day 36 of delinquency, and (b) continued outbound attempts every 7 days until one of the 5 stopping conditions was reached? **Verbatim regulator text:** ``` The servicer must begin outbound contact attempts no later than the 36th day of delinquency and must continue every 7 days ``` _Authority_: FNMA Servicing Guide D2-2-02 — Outbound Contact Attempt Requirements _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Failure to attempt timely outbound contact is a FNMA Servicing Guide breach + state-law early-default-contact exposure. --- #### FNMA Servicing Guide D2-2-02 — Discontinue outbound contact 60/30 days before foreclosure sale **Obligation ID:** `fnma-svc-d2-2-02-discontinue-outbound-before-foreclosure-sale` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** per-foreclosure **Operative duty (lender voice):** > Unless required by applicable law to continue outbound contact > attempts to the delinquent borrower, [LENDER] (servicer) shall > discontinue all outbound contact attempts: (a) 60 days prior to > the judicial foreclosure sale date, or (b) 30 days prior to a > non-judicial foreclosure sale date. The pre-sale outbound-stop > rule prevents harassment-pattern claims while foreclosure > proceedings finalize. **Compliance obligation:** > For every FNMA loan that advanced to foreclosure sale, can [LENDER] evidence (via outbound-contact logs) the last outbound contact attempt occurred at least 60 days before judicial sale or 30 days before non-judicial sale — UNLESS applicable law required continued contact? **Verbatim regulator text:** ``` the servicer must discontinue all outbound contact attempts ``` _Authority_: FNMA Servicing Guide D2-2-02 — Outbound Contact Attempt Requirements _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Continued outbound contact during the no-contact pre-sale window can support harassment / unfair-practices claims. --- #### FNMA Servicing Guide D2-2-02 — Emphasize importance of timely payment during outbound contact **Obligation ID:** `fnma-svc-d2-2-02-emphasize-payment-importance-during-contact` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** per-outbound-attempt **Operative duty (lender voice):** > When [LENDER] (servicer) communicates with the borrower during > outbound contact attempts, [LENDER] shall emphasize the > importance of making payments on or prior to their due dates. > The messaging requirement reinforces FNMA's preference for > payment-current resolution before workout-option escalation. **Compliance obligation:** > Can [LENDER] evidence (via call-script approvals, QA samples of recorded calls, training materials) that outbound-contact messaging consistently emphasizes payment-on-time importance to the borrower? **Verbatim regulator text:** ``` the servicer must emphasize the importance of making payments on or prior to their due dates. ``` _Authority_: FNMA Servicing Guide D2-2-02 — Outbound Contact Attempt Requirements _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Off-message outbound contact scripts undercut FNMA payment-current preference and weaken servicing-performance metrics. --- #### FNMA Servicing Guide D2-2-03 — Send payment reminder notice no later than day 20 **Obligation ID:** `fnma-svc-d2-2-03-payment-reminder-by-day-20` **Workflow phase:** default_collections **Owner role:** chief_servicing_officer **Cadence:** per-late-payment-month **Operative duty (lender voice):** > [LENDER] (servicer) shall send a payment reminder notice to the > borrower no later than the 20th day of the month if the payment > has not been received. Exceptions apply when (a) the mortgage > loan is a second lien mortgage loan (see D2-2-09) or (b) the > borrower is subject to an active forbearance plan (without regard > to whether the plan provides for reduced or suspended payments). > The notice must address the borrower by name, state a desire to > work with the borrower to preserve homeownership, state the > amount of late charges due (if applicable), and explain late- > payment-credit-reporting consequences. **Compliance obligation:** > For every loan where payment was not received in the current month, can [LENDER] evidence a payment-reminder notice was sent by the 20th day of the month? Are exception flags (second lien, active forbearance) recorded for any non-sent notices? **Verbatim regulator text:** ``` The servicer must send a payment reminder notice to the borrower no later than the 20th day of the month if the payment has not been received ``` _Authority_: FNMA Servicing Guide D2-2-03 — Sending a Payment Reminder Notice _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Missing payment-reminder notice is a FNMA Servicing Guide breach and reduces borrower opportunity to cure before later-stage collection. --- --- # FNMA Servicing Guide D2-3 — Fannie Mae's Home Retention and Liquidation Workout Options **Register slug:** `fnma-svc-d2-3` **Obligation count:** 2 ## Register description Servicing Guide Chapter D2-3 covers the FNMA workout menu and workout-selection governance. ## Obligations #### FNMA Servicing Guide D2-3.1-01 — Determining the Appropriate Workout Option **Obligation ID:** `fnma-svc-d2-3-no-upfront-cash-contribution` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-event **Operative duty (lender voice):** > [LENDER] must not require the borrower to make an upfront cash > contribution to be considered for a workout option on a Fannie Mae > mortgage loan. **Compliance obligation:** > Can [LENDER] evidence that no upfront cash contribution was required from any borrower as a condition of being considered for a Fannie Mae workout option? **Verbatim regulator text:** ``` The servicer must not require the borrower to make an upfront cash contribution to be considered for a workout ``` _Authority_: FNMA Servicing Guide D2-3.1-01 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- #### FNMA Servicing Guide D2-3.1-02 — Conditions of a First and Second Lien Mortgage Loan Modification for an MBS Mortgage Loan **Obligation ID:** `fnma-svc-d2-3-no-modify-loan-in-mbs-pool` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-event **Operative duty (lender voice):** > [LENDER] must not modify a mortgage loan while it is in an MBS pool > (including PFP mortgage loans); performing MBS mortgage loans are > ineligible for purchase from the related MBS pool for the purpose of > modifying the mortgage loan term, interest rate, UPB, or other major > characteristic(s) of the mortgage loan. **Compliance obligation:** > Can [LENDER] evidence that no mortgage loan was modified while still in an MBS pool, and that no performing MBS mortgage loan was purchased from its pool for the purpose of modifying its term, rate, UPB, or other major characteristic? **Verbatim regulator text:** ``` The servicer must not modify a mortgage loan while it is in an MBS pool (including PFP mortgage loans). ``` _Authority_: FNMA Servicing Guide D2-3.1-02 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- --- # FNMA Servicing Guide D2-3.1 — Determining the Appropriate Workout Option / Conditions for MBS Pool Modification / Group Home Servicing **Register slug:** `fnma-svc-d2-3-1` **Obligation count:** 5 ## Register description FNMA Servicing Guide D2-3.1-02 and D2-3.1-03 govern operational rules for workout options on MBS-pool mortgage loans and group home mortgage loans: no-modify-while-in-MBS-pool rule, 4- consecutive-month delinquency precondition for special-servicing MBS removal, Trial Period Plan payment precondition for modification implementation, modification-effective-only-after- MBS-removal rule, and group-home foreclosure-prevention duty requiring work with the funding agency. Fills FNMA Servicing D2- 3.1 chapter gap. ## Obligations #### FNMA Servicing Guide D2-3.1-02 — No mortgage modification while loan is in an MBS pool **Obligation ID:** `fnma-svc-d2-3-1-02-no-modify-while-in-mbs-pool` **Workflow phase:** loss_mitigation **Owner role:** loss_mitigation_specialist **Cadence:** per-mbs-modification **Operative duty (lender voice):** > [LENDER] (servicer) shall NOT modify a mortgage loan while it is > in an MBS pool (including PFP mortgage loans). Performing MBS > mortgage loans are ineligible for purchase from the related MBS > pool for the purpose of modifying the mortgage loan term, > interest rate, UPB, or other major characteristics. The MBS- > structural constraint prevents pool-level investor interest > dilution via loan-level modifications. **Compliance obligation:** > For every FNMA-MBS mortgage loan modification [LENDER] executed, can [LENDER] evidence that the loan was REMOVED from the MBS pool before the modification was executed? **Verbatim regulator text:** ``` The servicer must not modify a mortgage loan while it is in an MBS pool ``` _Authority_: FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Modification of an in-pool MBS mortgage loan is a foundational MBS-structural breach; may trigger pool-level investor claims and FNMA enforcement. --- #### FNMA Servicing Guide D2-3.1-02 — 4-consecutive-month delinquency precondition for special-servicing MBS removal **Obligation ID:** `fnma-svc-d2-3-1-02-mbs-removal-4-consecutive-month-delinquency` **Workflow phase:** loss_mitigation **Owner role:** investor_reporting_manager **Cadence:** per-mbs-removal **Operative duty (lender voice):** > [LENDER] (servicer) may remove a special-servicing-option > mortgage loan from its MBS pool for modification only if the > mortgage loan has been in a continuous state of delinquency for > four consecutive monthly payment due dates (or at least eight > consecutive payment due dates in the case of a biweekly mortgage > loan) without a full cure of the delinquency during that period. > The bright-line delinquency-duration threshold prevents premature > pool removal. **Compliance obligation:** > For every special-servicing-option MBS loan [LENDER] removed from its pool for modification, can [LENDER] evidence (a) 4 consecutive monthly delinquency due dates (or 8 biweekly) and (b) no full cure during that period? **Verbatim regulator text:** ``` if a special servicing option mortgage loan has been in a continuous state of delinquency for four consecutive monthly payment due dates ``` _Authority_: FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Pool removal without the 4-consecutive-delinquency precondition is a FNMA Servicing Guide breach. --- #### FNMA Servicing Guide D2-3.1-02 — Modification not implemented if Trial Period Plan payments not made **Obligation ID:** `fnma-svc-d2-3-1-02-trial-period-payments-precondition` **Workflow phase:** loss_mitigation **Owner role:** loss_mitigation_specialist **Cadence:** per-modification **Operative duty (lender voice):** > [LENDER] (servicer) shall ensure that the mortgage loan > modification is NOT implemented if the required Trial Period > Plan payments are not made in accordance with the applicable > mortgage loan modification workout option, because the > preconditions to make the modification effective have not been > satisfied. The Trial Period Plan payment record is the operative > gate for permanent modification. **Compliance obligation:** > For every mortgage loan modification [LENDER] implemented, can [LENDER] evidence that all required Trial Period Plan payments were made per the workout-option terms before modification documents were executed? **Verbatim regulator text:** ``` The servicer must ensure that the mortgage loan modification is not implemented if the required Trial Period Plan payments are not made ``` _Authority_: FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Implementing a modification on a borrower who did not complete Trial Period Plan payments is a FNMA Servicing Guide breach. --- #### FNMA Servicing Guide D2-3.1-02 — Mortgage loan modification not effective while in MBS pool **Obligation ID:** `fnma-svc-d2-3-1-02-modification-not-effective-while-in-pool` **Workflow phase:** loss_mitigation **Owner role:** investor_reporting_manager **Cadence:** per-modification **Operative duty (lender voice):** > [LENDER] (servicer) shall ensure that a mortgage loan > modification does NOT become effective while it remains in an > MBS pool. The modification agreement must be executed after the > mortgage loan has been removed from any MBS pool and reclassified > as a Fannie Mae portfolio mortgage loan, and must reflect the > actual date of [LENDER]'s execution. **Compliance obligation:** > For every mortgage loan modification, can [LENDER] evidence (a) the loan was removed from any MBS pool and reclassified as a portfolio loan BEFORE the modification agreement was executed, and (b) the agreement reflects the actual execution date? **Verbatim regulator text:** ``` The servicer must ensure that a mortgage loan modification does not become effective while it remains in an MBS pool. ``` _Authority_: FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Effecting a modification while loan is still in an MBS pool is a foundational MBS-structural breach. --- #### FNMA Servicing Guide D2-3.1-03 — Group home delinquency: work with funding agency to resolve **Obligation ID:** `fnma-svc-d2-3-1-03-group-home-work-with-funding-agency` **Workflow phase:** loss_mitigation **Owner role:** loss_mitigation_specialist **Cadence:** per-group-home-delinquency **Operative duty (lender voice):** > For mortgage loans where the property securing the mortgage loan > serves as a group home, [LENDER] (servicer) shall work with the > borrower AND the funding agency to resolve a serious delinquency. > [LENDER] shall devote additional resources to foreclosure > prevention efforts when the group home is still occupied by > disabled tenants and, if appropriate, delay the initiation of > foreclosure. The group-home rule recognizes the vulnerable- > population housing-protection context. **Compliance obligation:** > For every group-home mortgage loan delinquency, can [LENDER] evidence (a) outreach to BOTH the borrower and the funding agency, (b) additional foreclosure-prevention resources devoted, and (c) any foreclosure-initiation delays when disabled tenants still occupy? **Verbatim regulator text:** ``` must work with the borrower and the funding agency to resolve a serious delinquency ``` _Authority_: FNMA Servicing Guide D2-3.1-03 — Working with a Borrower that has a Group Home Mortgage Loan _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Standard-track foreclosure on a group home with disabled occupants creates fair-housing and FNMA-program-specific exposure. --- --- # 12 CFR §1024.41 — Loss mitigation procedures **Register slug:** `reg-x-1024.41` **Obligation count:** 10 ## Register description Regulation X §1024.41 sets the loss-mitigation procedural framework for mortgage servicers: acknowledgment of receipt, 30-day evaluation of complete applications, denial-reason disclosures, 14-day appeal rights, the 120-day pre-foreclosure-referral hold, and the prohibition on foreclosure judgment/sale during evaluation (the anti-dual-tracking rules). ## Obligations #### 12 CFR §1024.41(b)(2)(i) — Acknowledgment of receipt of loss mitigation application **Obligation ID:** `reg-x-1024.41-b2-acknowledgment-notice-5-day` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-loss-mit-application **Operative duty (lender voice):** > If [LENDER], as servicer, receives a loss mitigation application 45 days > or more before a foreclosure sale, [LENDER] shall promptly review the > application for completeness and notify the borrower in writing within > 5 days (excluding legal public holidays, Saturdays, and Sundays) that > [LENDER] acknowledges receipt and has determined the application is > either complete or incomplete; if incomplete, the notice must state > the additional documents and information required, the applicable > submission date, and a statement about contacting servicers of other > mortgage loans on the same property. **Compliance obligation:** > For every loss-mit application received 45+ days before a foreclosure sale, can [LENDER] evidence the §1024.41(b)(2)(i)(B) written acknowledgment within 5 business days (excluding legal public holidays, Saturdays, and Sundays), including the complete/incomplete determination, the missing-document list (if incomplete), the applicable date, and the other-servicer statement? **Verbatim regulator text:** ``` (2) Review of loss mitigation application submission —(i) Requirements. If a servicer receives a loss mitigation application 45 days or more before a foreclosure sale, a servicer shall: ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(c)(1) — 30-day evaluation of complete loss mitigation application **Obligation ID:** `reg-x-1024.41-c1-30-day-evaluation` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-loss-mit-application **Operative duty (lender voice):** > Except as provided in §1024.41(c)(4)(ii), if [LENDER] receives a complete > loss mitigation application more than 37 days before a foreclosure sale, > then within 30 days of receipt [LENDER] shall evaluate the borrower for > all loss mitigation options available and provide the borrower with a > written notice stating the servicer's determination, the borrower's > accept/reject deadline under §1024.41(e), and (if applicable) the > borrower's §1024.41(h) appeal rights for loan-modification denials. **Compliance obligation:** > For every complete loss-mit application received >37 days before a foreclosure sale, can [LENDER] evidence a §1024.41(c)(1) written evaluation notice issued within 30 days that addresses all available options and discloses §1024.41(e) accept/reject deadlines and §1024.41(h) appeal rights where applicable? **Verbatim regulator text:** ``` (c) Evaluation of loss mitigation applications —(1) Complete loss mitigation application. Except as provided in paragraph (c)(4)(ii) of this section, if a servicer receives a complete loss mitigation application more than 37 days before a foreclosure sale, then, within 30 days of receiving the complete loss mitigation application , a servicer shall: ``` _Authority_: 12 CFR §1024.41(c)(1) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(c)(4)(i) — Reasonable diligence for third-party information **Obligation ID:** `reg-x-1024.41-c4-reasonable-diligence-third-party` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-loss-mit-application **Operative duty (lender voice):** > If [LENDER] requires documents or information not in the borrower's > control to determine which loss mitigation options it will offer, > [LENDER] must exercise reasonable diligence in obtaining such documents > or information. [LENDER] must not deny a complete loss-mit application > solely because [LENDER] lacks third-party information, subject to the > (c)(4)(ii)(A)(2) exception; if the 30-day determination is delayed > due to missing third-party info, [LENDER] must send the (c)(4)(ii)(B) > interim notice describing the missing items and the status of the > request. **Compliance obligation:** > When loss-mit evaluation depends on documents from third parties, does [LENDER] document reasonable-diligence efforts to obtain them and issue the §1024.41(c)(4)(ii)(B) interim notice when the 30-day clock is exceeded due to missing third-party info? **Verbatim regulator text:** ``` (4) Information not in the borrower's control —(i) Reasonable diligence. If a servicer requires documents or information not in the borrower's control to determine which loss mitigation options, if any, it will offer to the borrower, the servicer must exercise reasonable diligence in obtaining such documents or information. ``` _Authority_: 12 CFR §1024.41(c)(4)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(d) — Denial of loan modification options: specific reasons **Obligation ID:** `reg-x-1024.41-d-denial-specific-reasons` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-denial **Operative duty (lender voice):** > If a complete loss mitigation application is denied for any trial or > permanent loan modification option, [LENDER] shall state in the > §1024.41(c)(1)(ii) notice the specific reason or reasons for the > denial for each such option and, if applicable, that the borrower > was not evaluated on other criteria. **Compliance obligation:** > Do [LENDER]'s loan-modification denial notices state the specific reason(s) for denial for each trial or permanent modification option evaluated, plus (if applicable) a statement that the borrower was not evaluated on other criteria? **Verbatim regulator text:** ``` (d) Denial of loan modification options. If a borrower's complete loss mitigation application is denied for any trial or permanent loan modification option available to the borrower pursuant to paragraph (c) of this section, a servicer shall state in the notice sent to the borrower pursuant to paragraph (c)(1)(ii) of this section the specific reason or reasons for the servicer 's determination for each such trial or permanent loan modification option and, if applicable, that the borrower was not evaluated on other criteria. ``` _Authority_: 12 CFR §1024.41(d) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(f)(1) — Pre-foreclosure 120-day review period **Obligation ID:** `reg-x-1024.41-f1-120-day-foreclosure-referral` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-foreclosure-referral **Operative duty (lender voice):** > [LENDER] shall not make the first notice or filing required by > applicable law for any judicial or non-judicial foreclosure process > unless the borrower's mortgage loan obligation is more than 120 days > delinquent, the foreclosure is based on a due-on-sale clause violation, > or [LENDER] is joining the foreclosure action of a superior or > subordinate lienholder. **Compliance obligation:** > Can [LENDER] evidence that no first-foreclosure-notice/filing was made on any loan that was 120 days or less delinquent, absent a due-on-sale violation or a superior/subordinate lienholder join? **Verbatim regulator text:** ``` (f) Prohibition on foreclosure referral —(1) Pre-foreclosure review period. A servicer shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process unless: ``` _Authority_: 12 CFR §1024.41(f)(1) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(g) — Prohibition on foreclosure sale (anti-dual-tracking) **Obligation ID:** `reg-x-1024.41-g-prohibition-on-foreclosure-sale` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-foreclosure-action **Operative duty (lender voice):** > If a borrower submits a complete loss mitigation application after > [LENDER] has made the first foreclosure notice/filing but more than 37 > days before a foreclosure sale, [LENDER] shall not move for foreclosure > judgment or order of sale, or conduct a foreclosure sale, unless: (1) > [LENDER] has sent the §1024.41(c)(1)(ii) ineligibility notice and the > appeal process is inapplicable / not requested in time / denied; (2) > the borrower rejects all offered options; or (3) the borrower fails > to perform under an agreement on a loss mitigation option. **Compliance obligation:** > Where a complete loss-mit application was submitted post-referral but >37 days before sale, can [LENDER] show that no foreclosure judgment/order-of-sale/sale occurred unless the §1024.41(g)(1)–(3) carve-outs (ineligibility-notice complete, borrower rejection, or performance failure) applied? **Verbatim regulator text:** ``` (g) Prohibition on foreclosure sale. If a borrower submits a complete loss mitigation application after a servicer has made the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process but more than 37 days before a foreclosure sale, a servicer shall not move for foreclosure judgment or order of sale, or conduct a foreclosure sale, unless: ``` _Authority_: 12 CFR §1024.41(g) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(h) — Appeal process for loan modification denials **Obligation ID:** `reg-x-1024.41-h-appeal-process` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-denial **Operative duty (lender voice):** > If [LENDER] receives a complete loss mitigation application 90 days or > more before a foreclosure sale, or during the §1024.41(f) pre- > foreclosure review period, [LENDER] shall permit a borrower to appeal > [LENDER]'s denial of any trial or permanent loan-modification option, > within 14 days after [LENDER] provides the §1024.41(c)(1)(ii) offer > notice; the appeal must be reviewed by different personnel than those > who evaluated the original application; and [LENDER] shall provide > a written appeal-determination notice within 30 days under (h)(4). **Compliance obligation:** > For every loan-modification denial where the application was received 90+ days before sale or during the §1024.41(f) period, can [LENDER] evidence (i) a 14-day borrower appeal window, (ii) review by independent personnel, and (iii) a §1024.41(h)(4) written determination within 30 days of the appeal? **Verbatim regulator text:** ``` (h) Appeal process —(1) Appeal process required for loan modification denials. If a servicer receives a complete loss mitigation application 90 days or more before a foreclosure sale or during the period set forth in paragraph (f) of this section, a servicer shall permit a borrower to appeal the servicer 's determination to deny a borrower's loss mitigation application for any trial or permanent loan modification program available to the borrower. ``` _Authority_: 12 CFR §1024.41(h) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(c)(1) — 30-day evaluation of complete loss mitigation application — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.41-c1-30-day-evaluation-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.41(c)(1) — 30-day evaluation of complete loss mitigation application, dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (i) Evaluate the borrower for all loss mitigation options available to the borrower; and (ii) Provide the borrower with a notice in writing stating the servicer 's determination of which loss mitigation options, if any, it will offer to the borrower on behalf of the owner or assignee of the mortgage . The servicer shall include in this notice the amount of time the borrower has to accept or reject an offer of a loss mitigation program as provided for in paragraph (e) of this section, if applicable, and a notification, if applicable, that the borrower has the right to appeal the denial of any loan modification option as well as the amount of time the borrower has to file such an appeal and any requirements for making an appeal, as provided for in paragraph (h) of this section. ``` _Authority_: 12 CFR §1024.41(c)(1) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(f)(1) — Pre-foreclosure 120-day review period — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.41-f1-120-day-foreclosure-referral-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.41(f)(1) — Pre-foreclosure 120-day review period, dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (i) A borrower's mortgage loan obligation is more than 120 days delinquent; (ii) The foreclosure is based on a borrower's violation of a due-on-sale clause; or (iii) The servicer is joining the foreclosure action of a superior or subordinate lienholder. ``` _Authority_: 12 CFR §1024.41(f)(1) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(g) — Prohibition on foreclosure sale (anti-dual-tracking) — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.41-g-prohibition-on-foreclosure-sale-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.41(g) — Prohibition on foreclosure sale (anti-dual-tracking), dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (1) The servicer has sent the borrower a notice pursuant to paragraph (c)(1)(ii) of this section that the borrower is not eligible for any loss mitigation option and the appeal process in paragraph ``` _Authority_: 12 CFR §1024.41(g) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- --- # 12 CFR §1024.40 — Continuity of contact **Register slug:** `reg-x-1024.40` **Obligation count:** 7 ## Register description Regulation X §1024.40 requires servicers to maintain policies and procedures reasonably designed to assign personnel to delinquent borrowers, make those personnel available to respond to inquiries and assist with loss mitigation, and ensure those personnel can perform enumerated information-delivery and record-retrieval functions. ## Obligations #### 12 CFR §1024.40(a) — Continuity-of-contact policies and procedures **Obligation ID:** `reg-x-1024.40-a-pp-objectives` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** continuous **Operative duty (lender voice):** > [LENDER], as servicer, shall maintain policies and procedures that are > reasonably designed to achieve the objectives in §1024.40(a)(1)–(3): > assign personnel to a delinquent borrower by the time the §1024.39(b) > written notice is provided but in any event not later than the 45th > day of delinquency; make those personnel available by telephone; and > ensure a timely live response when the borrower contacts the assigned > personnel. **Compliance obligation:** > Do [LENDER]'s continuity-of-contact policies and procedures address each of the §1024.40(a)(1)–(3) objectives, including the 45-day personnel-assignment deadline and timely live-response obligation? **Verbatim regulator text:** ``` (a) In general. A servicer shall maintain policies and procedures that are reasonably designed to achieve the following objectives: ``` _Authority_: 12 CFR §1024.40(a) _Source_: _Snapshot_: `cde74e9b810c3590` _Fetched_: 2026-05-22T11:32:19Z --- #### 12 CFR §1024.40(a)(1) — Assign personnel by 45th day of delinquency **Obligation ID:** `reg-x-1024.40-a1-assign-personnel-45-day` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-delinquency-cycle **Operative duty (lender voice):** > [LENDER]'s continuity-of-contact policies must ensure assigned personnel > are assigned to a delinquent borrower by the time the §1024.39(b) > written notice is provided, and in any event not later than the 45th > day of the borrower's delinquency. **Compliance obligation:** > For every delinquent loan, can [LENDER] evidence assignment of continuity-of-contact personnel by the §1024.39(b) written-notice date and no later than day 45 of delinquency? **Verbatim regulator text:** ``` (1) Assign personnel to a delinquent borrower by the time the servicer provides the borrower with the written notice required by § 1024.39(b) , but in any event, not later than the 45th day of the borrower's delinquency . ``` _Authority_: 12 CFR §1024.40(a)(1) _Source_: _Snapshot_: `cde74e9b810c3590` _Fetched_: 2026-05-22T11:32:19Z --- #### 12 CFR §1024.40(a)(2) — Personnel availability by telephone **Obligation ID:** `reg-x-1024.40-a2-personnel-availability` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** continuous **Operative duty (lender voice):** > [LENDER]'s continuity-of-contact policies must make the assigned > personnel available to a delinquent borrower by telephone to respond > to inquiries and, as applicable, assist with available loss mit options > until the borrower has made, without incurring a late charge, two > consecutive mortgage payments under a permanent loss mit agreement. **Compliance obligation:** > Are assigned continuity-of-contact personnel reachable by telephone for every delinquent [LENDER] borrower and do they remain available through two consecutive on-time payments under a permanent loss-mit agreement? **Verbatim regulator text:** ``` (2) Make available to a delinquent borrower, via telephone, personnel assigned to the borrower as described in paragraph (a)(1) of this section to respond to the borrower's inquiries, and as applicable, assist the borrower with available loss mitigation options until the borrower has made, without incurring a late charge, two consecutive mortgage payments in accordance with the terms of a permanent loss mitigation agreement. ``` _Authority_: 12 CFR §1024.40(a)(2) _Source_: _Snapshot_: `cde74e9b810c3590` _Fetched_: 2026-05-22T11:32:19Z --- #### 12 CFR §1024.40(b)(1) — Functions: provide accurate information **Obligation ID:** `reg-x-1024.40-b1-accurate-information` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** continuous **Operative duty (lender voice):** > [LENDER]'s continuity-of-contact personnel must be able to provide the > borrower with accurate information about loss-mit options from the > owner/assignee, actions the borrower must take to be evaluated (including > to submit a complete §1024.41 application and to appeal denials of trial > or permanent modifications), status of the borrower's loss-mit > application, circumstances under which a foreclosure referral may be > made, and applicable loss-mit deadlines (owner/assignee or §1024.41). **Compliance obligation:** > Are [LENDER]'s continuity-of-contact personnel trained and resourced to provide accurate information on the five §1024.40(b)(1)(i)–(v) topics (options, required actions, status, foreclosure-referral circumstances, and deadlines)? **Verbatim regulator text:** ``` (1) Provide the borrower with accurate information about: ``` _Authority_: 12 CFR §1024.40(b)(1) _Source_: _Snapshot_: `cde74e9b810c3590` _Fetched_: 2026-05-22T11:32:19Z --- #### 12 CFR §1024.40(b)(2) — Functions: retrieve records timely **Obligation ID:** `reg-x-1024.40-b2-retrieve-records` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** continuous **Operative duty (lender voice):** > [LENDER]'s continuity-of-contact personnel must be able to retrieve, in > a timely manner, a complete record of the borrower's payment history and > all written information the borrower has provided to the servicer and to > prior servicers in connection with a loss mitigation application. **Compliance obligation:** > Can [LENDER]'s continuity-of-contact personnel pull, in a timely manner, the full payment history and the borrower's complete written loss-mit submissions (including from prior servicers)? **Verbatim regulator text:** ``` (2) Retrieve, in a timely manner: ``` _Authority_: 12 CFR §1024.40(b)(2) _Source_: _Snapshot_: `cde74e9b810c3590` _Fetched_: 2026-05-22T11:32:19Z --- #### 12 CFR §1024.40(b)(1) — Functions: provide accurate information — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.40-b1-accurate-information-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.40(b)(1) — Functions: provide accurate information, dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (i) Loss mitigation options available to the borrower from the owner or assignee of the borrower's mortgage loan ; (ii) Actions the borrower must take to be evaluated for such loss mitigation options, including actions the borrower must take to submit a complete loss mitigation application , as defined in § 1024.41 , and, if applicable, actions the borrower must take to appeal the servicer 's determination to deny a borrower's loss mitigation application for any trial or permanent loan modification program offered by the servicer ; (iii) The status of any loss mitigation application that the borrower has submitted to the servicer ; (iv) The circumstances under which the servicer may make a referral to foreclosure; and (v) Applicable loss mitigation deadlines established by an owner or assignee of the borrower's mortgage loan or § 1024.41 . ``` _Authority_: 12 CFR §1024.40(b)(1) _Source_: _Snapshot_: `cde74e9b810c3590` _Fetched_: 2026-05-22T11:32:19Z --- #### 12 CFR §1024.40(b)(2) — Functions: retrieve records timely — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.40-b2-retrieve-records-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.40(b)(2) — Functions: retrieve records timely, dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (i) A complete record of the borrower's payment history; and (ii) All written information the borrower has provided to the servicer , and if applicable, to prior servicers, in connection with a loss mitigation application ; ``` _Authority_: 12 CFR §1024.40(b)(2) _Source_: _Snapshot_: `cde74e9b810c3590` _Fetched_: 2026-05-22T11:32:19Z --- --- # 12 CFR §1024.39 — Early intervention requirements for certain borrowers **Register slug:** `reg-x-1024.39` **Obligation count:** 9 ## Register description Regulation X §1024.39 requires servicers to make live contact with delinquent borrowers by the 36th day of delinquency and to provide a written early-intervention notice no later than the 45th day; it also sets partial exemptions for borrowers in bankruptcy and borrowers who have invoked FDCPA §805(c) cease-communication. ## Obligations #### 12 CFR §1024.39(a) — Live contact (36-day rule) **Obligation ID:** `reg-x-1024.39-a-live-contact-36-day` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-delinquency-cycle **Operative duty (lender voice):** > [LENDER], as servicer, shall establish or make good faith efforts to > establish live contact with a delinquent borrower no later than the 36th > day of delinquency and again no later than 36 days after each subsequent > payment due date so long as the borrower remains delinquent. Promptly > after establishing live contact, [LENDER] shall inform the borrower > about the availability of loss mitigation options, if appropriate. **Compliance obligation:** > Can [LENDER] evidence good-faith live-contact attempts no later than the 36th day of delinquency (and again no later than 36 days after each subsequent due date) for every delinquent loan, plus a loss-mit-availability discussion once contact is made? **Verbatim regulator text:** ``` (a) Live contact. Except as otherwise provided in this section, a servicer shall establish or make good faith efforts to establish live contact with a delinquent borrower no later than the 36th day of a borrower's delinquency and again no later than 36 days after each payment due date so long as the borrower remains delinquent. Promptly after establishing live contact with a borrower, the servicer shall inform the borrower about the availability of loss mitigation options, if appropriate. ``` _Authority_: 12 CFR §1024.39(a) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(b)(1) — Written notice required (45-day rule) **Obligation ID:** `reg-x-1024.39-b1-written-notice-45-day` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-delinquency-cycle **Operative duty (lender voice):** > [LENDER], as servicer, shall provide to a delinquent borrower a written > early-intervention notice containing the §1024.39(b)(2) content no later > than the 45th day of delinquency and again no later than 45 days after > each subsequent payment due date so long as the borrower remains > delinquent — subject to the once-per-180-day frequency cap and the > follow-on timing rules in §1024.39(b)(1). **Compliance obligation:** > For every delinquent loan, can [LENDER] evidence a §1024.39(b) written early-intervention notice delivered no later than the 45th day of delinquency, with the §1024.39(b)(2) required content, observing the once-per-180-day cap and follow-on timing? **Verbatim regulator text:** ``` (b) Written notice —(1) Notice required. Except as otherwise provided in this section, a servicer shall provide to a delinquent borrower a written notice with the information set forth in paragraph (b)(2) of this section no later than the 45th day of the borrower's delinquency and again no later than 45 days after each payment due date so long as the borrower remains delinquent. A servicer is not required to provide the written notice, however, more than once during any 180-day period. If a borrower is 45 days or more delinquent at the end of any 180-day period after the servicer has provided the written notice, a servicer must provide the written notice again no later than 180 days after the provision of the prior written notice. If a borrower is less than 45 days delinquent at the end of any 180-day period after the servicer has provided the written notice, a servicer must provide the written notice again no later than 45 days after the payment due date for which the borrower remains delinquent. ``` _Authority_: 12 CFR §1024.39(b)(1) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(b)(2) — Content of the written notice **Obligation ID:** `reg-x-1024.39-b2-written-notice-content` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** continuous **Operative duty (lender voice):** > [LENDER]'s §1024.39(b) written notice shall include: a statement > encouraging the borrower to contact the servicer; the §1024.40(a) > continuity-of-contact telephone number and the servicer's mailing > address; if applicable, brief examples of loss mitigation options; > if applicable, application instructions or how to obtain more > information about loss mit options; and the Bureau or HUD homeownership- > counselor website plus the HUD toll-free counselor phone number. **Compliance obligation:** > Does [LENDER]'s early-intervention written notice template contain each of the five §1024.39(b)(2)(i)–(v) content items, including the §1024.40(a) phone number and HUD/Bureau counselor referral? **Verbatim regulator text:** ``` (2) Content of the written notice. The notice required by paragraph (b)(1) of this section shall include: ``` _Authority_: 12 CFR §1024.39(b)(2) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(c)(1) — Borrowers in bankruptcy partial exemption **Obligation ID:** `reg-x-1024.39-c1-bankruptcy-partial-exemption` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-bankruptcy-event **Operative duty (lender voice):** > While any borrower on a mortgage loan is a debtor in bankruptcy under > title 11 of the United States Code, [LENDER]: is exempt from the (a) > live-contact requirement; is exempt from the (b) written-notice > requirement if no loss mitigation option is available, or if any > borrower has provided an FDCPA §805(c) cease-communication notice; > and otherwise must comply with (b) as modified by §1024.39(c)(1)(iii). **Compliance obligation:** > When a borrower files bankruptcy under title 11, does [LENDER] correctly apply the §1024.39(c)(1) partial exemption (live-contact off, written-notice conditional on loss-mit availability and FDCPA §805(c) status, and modified-(b) timing per §1024.39(c)(1)(iii)(A)–(C))? **Verbatim regulator text:** ``` (c) Borrowers in bankruptcy —(1) Partial exemption. While any borrower on a mortgage loan is a debtor in bankruptcy under title 11 of the United States Code, a servicer , with regard to that mortgage loan: ``` _Authority_: 12 CFR §1024.39(c)(1) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(c)(2) — Resuming compliance after bankruptcy **Obligation ID:** `reg-x-1024.39-c2-resuming-compliance-post-bankruptcy` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-bankruptcy-exit **Operative duty (lender voice):** > [LENDER] that was exempt from (a) and (b) under (c)(1) must resume > compliance with (a) and (b) after the next payment due date following > the earliest of: bankruptcy case dismissal, case closure, or borrower > reaffirmation of personal liability — subject to the §1024.39(c)(2)(ii) > exception for loans where the borrower discharged personal liability > under 11 U.S.C. §§727, 1141, 1228, or 1328. **Compliance obligation:** > Does [LENDER]'s bankruptcy-exit workflow correctly resume §1024.39(a) live-contact and (b) written-notice obligations after the next payment due date following the earliest of dismissal, closure, or reaffirmation, with the discharge exception under §1024.39(c)(2)(ii) properly applied? **Verbatim regulator text:** ``` (2) Resuming compliance. ``` _Authority_: 12 CFR §1024.39(c)(2) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(d) — FDCPA partial exemption **Obligation ID:** `reg-x-1024.39-d-fdcpa-partial-exemption` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-event **Operative duty (lender voice):** > When any borrower has provided an FDCPA §805(c) (15 U.S.C. §1692c(c)) > cease-communication notice on a mortgage loan, [LENDER] (if subject to > the FDCPA on that loan): is exempt from (a) live-contact; is exempt > from (b) written-notice if no loss-mit option is available or while > any borrower is in bankruptcy; otherwise must comply with (b) as > modified by §1024.39(d)(3) — including the foreclosure-intent statement > in the notice, the prohibition on payment requests, and the once-per- > 180-day frequency cap with the 190-day re-issue rule. **Compliance obligation:** > When any borrower has invoked FDCPA §805(c) on a [LENDER]-serviced loan, does the servicing workflow correctly suppress live contact, conditionally suppress the written notice, and — when notice is required — use the §1024.39(d)(3) modified notice (foreclosure-intent statement, no payment request, once-per-180-day cap with 190-day re-issue)? **Verbatim regulator text:** ``` (d) Fair Debt Collection Practices Act — partial exemption. With regard to a mortgage loan for which any borrower has provided a notification pursuant to the Fair Debt Collection Practices Act (FDCPA) section 805(c) ( 15 U.S.C. 1692c(c) ), a servicer subject to the FDCPA with respect to that borrower's loan: ``` _Authority_: 12 CFR §1024.39(d) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(b)(2) — Content of the written notice — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.39-b2-written-notice-content-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.39(b)(2) — Content of the written notice, dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (i) A statement encouraging the borrower to contact the servicer ; (ii) The telephone number to access servicer personnel assigned pursuant to § 1024.40(a) and the servicer 's mailing address; (iii) If applicable, a statement providing a brief description of examples of loss mitigation options that may be available from the servicer ; (iv) If applicable, either application instructions or a statement informing the borrower how to obtain more information about loss mitigation options from the servicer ; and (v) The Web site to access either the Bureau list or the HUD list of homeownership counselors or counseling organizations, and the HUD toll-free telephone number to access homeownership counselors or counseling organizations. ``` _Authority_: 12 CFR §1024.39(b)(2) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(c)(1) — Borrowers in bankruptcy partial exemption — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.39-c1-bankruptcy-partial-exemption-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.39(c)(1) — Borrowers in bankruptcy partial exemption, dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (i) Is exempt from the requirements of paragraph (a) of this section; (ii) Is exempt from the requirements of paragraph (b) of this section if no loss mitigation option is available, or if any borrower on the mortgage loan has provided a notification pursuant to the Fair Debt Collection Practices Act (FDCPA) section 805(c) ( 15 U.S.C. 1692c(c) ) with respect to that mortgage loan as referenced in paragraph (d) of this section; and (iii) If the conditions of paragraph (c)(1)(ii) of this section are not met, must comply with the requirements of paragraph (b) of this section, as modified by this paragraph (c)(1)(iii): (A) If a borrower is delinquent when the borrower becomes a debtor in bankruptcy, a servicer must provide the written notice required by paragraph (b) of this section not later than the 45th day after the borrower files a bankruptcy petition under title 11 of the United States Code. If the borrower is not delinquent when the borrower files a bankruptcy petition, but subsequently becomes delinquent while a debtor in bankruptcy, the servicer must provide the written notice not later than the 45th day of the borrower's delinquency . A servicer must comply with these timing requirements regardless of whether the servicer provided the written notice in the preceding 180-day period. (B) The written notice required by paragraph (b) of this section may not contain a request for payment. (C) A servicer is not required to provide the written notice required by paragraph (b) of this section more than once during a single bankruptcy case. ``` _Authority_: 12 CFR §1024.39(c)(1) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(d) — FDCPA partial exemption — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.39-d-fdcpa-partial-exemption-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.39(d) — FDCPA partial exemption, dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (1) Is exempt from the requirements of paragraph ``` _Authority_: 12 CFR §1024.39(d) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- --- # 12 CFR §1024.38 — General servicing policies, procedures, and requirements **Register slug:** `reg-x-1024.38` **Obligation count:** 12 ## Register description Regulation X §1024.38 requires mortgage servicers to maintain reasonable policies and procedures designed to achieve enumerated servicing objectives, plus standard record-retention and servicing-file requirements. ## Obligations #### 12 CFR §1024.38(a) — Reasonable policies and procedures **Obligation ID:** `reg-x-1024.38-a-reasonable-pp` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** continuous **Operative duty (lender voice):** > [LENDER], as a mortgage servicer, shall maintain policies and procedures > that are reasonably designed to achieve the objectives set forth in > paragraph (b) of §1024.38. **Compliance obligation:** > Can [LENDER] produce its servicing policies and procedures document and demonstrate they are reasonably designed to achieve each of the §1024.38(b) objectives (accurate information, loss-mit evaluation, service-provider oversight, servicing-transfer information transfer, and borrower-procedure notice)? **Verbatim regulator text:** ``` (a) Reasonable policies and procedures. A servicer shall maintain policies and procedures that are reasonably designed to achieve the objectives set forth in paragraph (b) of this section. ``` _Authority_: 12 CFR §1024.38(a) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(b)(1) — Accessing and providing timely and accurate information **Obligation ID:** `reg-x-1024.38-b1-accurate-timely-info` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** continuous **Operative duty (lender voice):** > [LENDER]'s servicing policies and procedures must be reasonably designed > to ensure the servicer can provide accurate and timely disclosures, > investigate and respond to borrower complaints, provide borrowers with > accurate information in response to requests, provide owners/assignees > with accurate information about loans they own, submit accurate foreclosure > filings, and handle successor-in-interest communications and confirmations. **Compliance obligation:** > Do [LENDER]'s policies and procedures address each of the six sub-objectives in §1024.38(b)(1)(i)–(vi), including the successor-in-interest workflow on receipt of death/transfer notice? **Verbatim regulator text:** ``` (b) Objectives —(1) Accessing and providing timely and accurate information. The policies and procedures required by paragraph (a) of this section shall be reasonably designed to ensure that the servicer can: ``` _Authority_: 12 CFR §1024.38(b)(1) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(b)(2) — Properly evaluating loss mitigation applications **Obligation ID:** `reg-x-1024.38-b2-loss-mit-evaluation` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** continuous **Operative duty (lender voice):** > [LENDER]'s policies and procedures must be reasonably designed to ensure > accurate information on available loss-mit options, identification of all > options the borrower may be eligible for, prompt staff access to all > documents in the borrower's loss-mit application, identification of > required documents (with the §1024.41(b)(2)(i)(B) notice), proper > evaluation under §1024.41, and prompt obtaining of third-party documents > not in the borrower's control per §1024.41(c)(4). **Compliance obligation:** > Do [LENDER]'s policies and procedures address each of the six loss-mit sub-objectives in §1024.38(b)(2)(i)–(vi), including the §1024.41(b)(2)(i)(B) acknowledgment-notice trigger? **Verbatim regulator text:** ``` (2) Properly evaluating loss mitigation applications. The policies and procedures required by paragraph (a) of this section shall be reasonably designed to ensure that the servicer can: ``` _Authority_: 12 CFR §1024.38(b)(2) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(b)(3) — Facilitating oversight of, and compliance by, service providers **Obligation ID:** `reg-x-1024.38-b3-service-provider-oversight` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** continuous **Operative duty (lender voice):** > [LENDER]'s policies and procedures must be reasonably designed to ensure > servicer personnel can access current documents reflecting service-provider > actions, conduct periodic service-provider reviews including compliance > audits, and share current loss-mit-evaluation and foreclosure status > information among the right servicer personnel and service-provider > personnel (including foreclosure-counsel). **Compliance obligation:** > Do [LENDER]'s policies and procedures address service-provider documentation access, periodic review/audit, and cross-personnel information sharing (including foreclosure counsel) under §1024.38(b)(3)? **Verbatim regulator text:** ``` (3) Facilitating oversight of, and compliance by, service providers. The policies and procedures required by paragraph (a) of this section shall be reasonably designed to ensure that the servicer can: ``` _Authority_: 12 CFR §1024.38(b)(3) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(b)(4) — Facilitating transfer of information during servicing transfers **Obligation ID:** `reg-x-1024.38-b4-servicing-transfer-info` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-event **Operative duty (lender voice):** > [LENDER]'s policies and procedures must be reasonably designed to ensure, > as transferor, the timely transfer of all loan information and documents > to the transferee in a form and manner that ensures accuracy and lets the > transferee comply with its obligations; and, as transferee, the > identification and retrieval of documents that the transferor may not > have transferred. **Compliance obligation:** > Do [LENDER]'s policies and procedures address both the transferor and transferee servicer-transfer obligations under §1024.38(b)(4)(i)–(iii)? **Verbatim regulator text:** ``` (4) Facilitating transfer of information during servicing transfers. The policies and procedures required by paragraph (a) of this section shall be reasonably designed to ensure that the servicer can: ``` _Authority_: 12 CFR §1024.38(b)(4) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(c)(1) — Record retention **Obligation ID:** `reg-x-1024.38-c1-record-retention` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** continuous **Operative duty (lender voice):** > [LENDER] shall retain records that document actions taken with respect to > a borrower's mortgage loan account until one year after the date the > mortgage loan is discharged or servicing is transferred by [LENDER] to a > transferee servicer. **Compliance obligation:** > Does [LENDER] retain mortgage-loan account action records until at least one year after discharge or servicing transfer, as required by §1024.38(c)(1)? **Verbatim regulator text:** ``` (c) Standard requirements —(1) Record retention. A servicer shall retain records that document actions taken with respect to a borrower's mortgage loan account until one year after the date a mortgage loan is discharged or servicing of a mortgage loan is transferred by the servicer to a transferee servicer . ``` _Authority_: 12 CFR §1024.38(c)(1) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(c)(2) — Servicing file **Obligation ID:** `reg-x-1024.38-c2-servicing-file` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** continuous **Operative duty (lender voice):** > [LENDER] shall maintain, on each mortgage loan account serviced, the > documents and data enumerated in §1024.38(c)(2)(i)–(v) (transaction > schedule including escrow and suspense; security instrument copy; servicer > personnel notes of communications; electronic-systems data-field reports; > and borrower-supplied documents under §1024.35 / §1024.41) in a manner > that facilitates compiling them into a servicing file within five days. **Compliance obligation:** > Can [LENDER] produce a complete §1024.38(c)(2) servicing file (transaction schedule, security instrument, communications notes, systems data, and borrower-supplied §1024.35/§1024.41 documents) for any serviced loan within five days? **Verbatim regulator text:** ``` (2) Servicing file. A servicer shall maintain the following documents and data on each mortgage loan account serviced by the servicer in a manner that facilitates compiling such documents and data into a servicing file within five days: ``` _Authority_: 12 CFR §1024.38(c)(2) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(b)(1) — Accessing and providing timely and accurate information — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.38-b1-accurate-timely-info-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.38(b)(1) — Accessing and providing timely and accurate information, dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (i) Provide accurate and timely disclosures to a borrower as required by this subpart or other applicable law; (ii) Investigate, respond to, and, as appropriate, make corrections in response to complaints asserted by a borrower; (iii) Provide a borrower with accurate and timely information and documents in response to the borrower's requests for information with respect to the borrower's mortgage loan ; (iv) Provide owners or assignees of mortgage loans with accurate and current information and documents about all mortgage loans they own; (v) Submit documents or filings required for a foreclosure process, including documents or filings required by a court of competent jurisdiction, that reflect accurate and current information and that comply with applicable law; and (vi) (A) Upon receiving notice of the death of a borrower or of any transfer of the property securing a mortgage loan , promptly facilitate communication with any potential or confirmed successors in interest regarding the property; (B) Upon receiving notice of the existence of a potential successor in interest , promptly determine the documents the servicer reasonably requires to confirm that person 's identity and ownership interest in the property and promptly provide to the potential successor in interest a description of those documents and how the person may submit a written request under § 1024.36(i) (including the appropriate address); and (C) Upon the receipt of such documents, promptly make a confirmation determination and promptly notify the person , as applicable, that the servicer has confirmed the person 's status, has determined that additional documents are required (and what those documents are), or has determined that the person is not a successor in interest . ``` _Authority_: 12 CFR §1024.38(b)(1) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(b)(2) — Properly evaluating loss mitigation applications — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.38-b2-loss-mit-evaluation-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.38(b)(2) — Properly evaluating loss mitigation applications, dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (i) Provide accurate information regarding loss mitigation options available to a borrower from the owner or assignee of the borrower's mortgage loan ; (ii) Identify with specificity all loss mitigation options for which borrowers may be eligible pursuant to any requirements established by an owner or assignee of the borrower's mortgage loan ; (iii) Provide prompt access to all documents and information submitted by a borrower in connection with a loss mitigation option to servicer personnel that are assigned to assist the borrower pursuant to § 1024.40 ; (iv) Identify documents and information that a borrower is required to submit to complete a loss mitigation application and facilitate compliance with the notice required pursuant to § 1024.41(b)(2)(i)(B) ; and (v) Properly evaluate a borrower who submits an application for a loss mitigation option for all loss mitigation options for which the borrower may be eligible pursuant to any requirements established by the owner or assignee of the borrower's mortgage loan and, where applicable, in accordance with the requirements of § 1024.41 . (vi) Promptly identify and obtain documents or information not in the borrower's control that the servicer requires to determine which loss mitigation options, if any, to offer the borrower in accordance with the requirements of § 1024.41(c)(4) . ``` _Authority_: 12 CFR §1024.38(b)(2) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(b)(3) — Facilitating oversight of, and compliance by, service providers — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.38-b3-service-provider-oversight-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.38(b)(3) — Facilitating oversight of, and compliance by, service providers, dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (i) Provide appropriate servicer personnel with access to accurate and current documents and information reflecting actions performed by service providers; (ii) Facilitate periodic reviews of service providers , including by providing appropriate servicer personnel with documents and information necessary to audit compliance by service providers with the servicer 's contractual obligations and applicable law; and (iii) Facilitate the sharing of accurate and current information regarding the status of any evaluation of a borrower's loss mitigation application and the status of any foreclosure proceeding among appropriate servicer personnel, including any personnel assigned to a borrower's mortgage loan account as described in § 1024.40 , and appropriate service provider personnel, including service provider personnel responsible for handling foreclosure proceedings. ``` _Authority_: 12 CFR §1024.38(b)(3) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(b)(4) — Facilitating transfer of information during servicing transfers — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.38-b4-servicing-transfer-info-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.38(b)(4) — Facilitating transfer of information during servicing transfers, dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (i) As a transferor servicer , timely transfer all information and documents in the possession or control of the servicer relating to a transferred mortgage loan to a transferee servicer in a form and manner that ensures the accuracy of the information and documents transferred and that enables a transferee servicer to comply with the terms of the transferee servicer 's obligations to the owner or assignee of the mortgage loan and applicable law; and (ii) As a transferee servicer , identify necessary documents or information that may not have been transferred by a transferor servicer and obtain such documents from the transferor servicer . (iii) For the purposes of this paragraph (b)(4), transferee servicer means a servicer , including a master servicer or a subservicer , that performs or will perform servicing of a mortgage loan and transferor servicer means a servicer , including a master servicer or a subservicer , that transfers or will transfer the servicing of a mortgage loan . ``` _Authority_: 12 CFR §1024.38(b)(4) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(c)(2) — Servicing file — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.38-c2-servicing-file-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.38(c)(2) — Servicing file, dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (i) A schedule of all transactions credited or debited to the mortgage loan account, including any escrow account as defined in § 1024.17(b) and any suspense account; (ii) A copy of the security instrument that establishes the lien securing the mortgage loan ; (iii) Any notes created by servicer personnel reflecting communications with the borrower about the mortgage loan account; (iv) To the extent applicable, a report of the data fields relating to the borrower's mortgage loan account created by the servicer 's electronic systems in connection with servicing practices; and (v) Copies of any information or documents provided by the borrower to the servicer in accordance with the procedures set forth in § 1024.35 or § 1024.41 . [ 78 FR 10876 , Feb. 14, 2013, as amended at 81 FR 72372 , Oct. 19, 2016] CFR Toolbox Law about... ``` _Authority_: 12 CFR §1024.38(c)(2) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- --- # 12 CFR §1024.37 — Force-placed insurance **Register slug:** `reg-x-1024.37` **Obligation count:** 9 ## Register description Regulation X §1024.37 sets requirements before [LENDER] may assess a borrower for force-placed hazard insurance: reasonable basis, 45-day initial notice, 15-day reminder notice (delivered no sooner than 30 days after the initial notice), 45-day renewal notice, mandatory cancellation and refund within 15 days of evidence of borrower coverage, bona-fide-and-reasonable charge limitation. ## Obligations #### 12 CFR §1024.37(b) — Reasonable basis required to charge for force-placed insurance **Obligation ID:** `reg-x-1024.37-b-reasonable-basis-required` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-fpi-assessment **Operative duty (lender voice):** > [LENDER] may not assess on a borrower a premium charge or fee > related to force-placed insurance unless [LENDER] has a reasonable > basis to believe that the borrower has failed to comply with the > mortgage loan contract's requirement to maintain hazard insurance. **Compliance obligation:** > For every borrower charged a force-placed-insurance premium or fee, can [LENDER] produce the documented reasonable basis (e.g., lapsed policy declarations page, non-renewal notice, escrow disbursement failure) supporting the belief that the borrower failed to maintain hazard insurance under the loan contract? **Verbatim regulator text:** ``` (b) Basis for charging borrower for force-placed insurance. A servicer may not assess on a borrower a premium charge or fee related to force-placed insurance unless the servicer has a reasonable basis to believe that the borrower has failed to comply with the mortgage loan contract's requirement to maintain hazard insurance . ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(c)(1) — Initial 45-day notice + 15-day reminder before charging **Obligation ID:** `reg-x-1024.37-c1-initial-notice-45-day-and-reminder` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-fpi-assessment **Operative duty (lender voice):** > Before [LENDER] assesses on a borrower any premium charge or fee > related to force-placed insurance, [LENDER] must: (i) deliver or > place in the mail a written initial notice containing the > §1024.37(c)(2) information at least 45 days before assessing the > charge or fee; (ii) deliver or place in the mail a §1024.37(d) > reminder notice; and (iii) by the end of the 15-day period > beginning on the date the reminder notice was delivered or placed > in the mail, not have received from the borrower or otherwise > evidence demonstrating the borrower has had in place, continuously, > hazard insurance coverage complying with the loan contract. **Compliance obligation:** > For every force-placed-insurance assessment, can [LENDER] produce (i) the initial §1024.37(c)(1)(i) notice with the §1024.37(c)(2) content delivered or mailed at least 45 days before the charge; (ii) the §1024.37(d) reminder notice; and (iii) evidence that no proof of continuous borrower hazard coverage was received during the 15-day reminder window? **Verbatim regulator text:** ``` (c) Requirements before charging borrower for force-placed insurance —(1) In general. Before a servicer assesses on a borrower any premium charge or fee related to force-placed insurance, the servicer must: ``` _Authority_: 12 CFR §1024.37(c)(1) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(d)(1) — Reminder notice: 15-day pre-charge, 30-day post-initial-notice **Obligation ID:** `reg-x-1024.37-d1-reminder-notice-15-day-30-day-gap` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-fpi-assessment **Operative duty (lender voice):** > The §1024.37(c)(1)(ii) reminder notice shall be delivered to the > borrower or placed in the mail at least 15 days before [LENDER] > assesses on a borrower a premium charge or fee related to > force-placed insurance. [LENDER] may not deliver or place in the > mail the reminder notice until at least 30 days after delivering or > placing in the mail the initial §1024.37(c)(1)(i) notice. **Compliance obligation:** > For every force-placed-insurance assessment, can [LENDER] evidence that the §1024.37(d)(1) reminder notice was delivered or mailed (a) at least 15 days before the FPI charge, AND (b) no sooner than 30 days after the initial §1024.37(c)(1)(i) notice was delivered or mailed? **Verbatim regulator text:** ``` (d) Reminder notice —(1) In general. The notice required by paragraph (c)(1)(ii) of this section shall be delivered to the borrower or placed in the mail at least 15 days before a servicer assesses on a borrower a premium charge or fee related to force-placed insurance. A servicer may not deliver to a borrower or place in the mail the notice required by paragraph (c)(1)(ii) of this section until at least 30 days after delivering to the borrower or placing in the mail the written notice required by paragraph (c)(1)(i) of this section. ``` _Authority_: 12 CFR §1024.37(d)(1) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(e)(1) — 45-day notice before renewing or replacing force-placed insurance **Obligation ID:** `reg-x-1024.37-e1-renewal-replacement-45-day-notice` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-fpi-renewal **Operative duty (lender voice):** > Before [LENDER] assesses on a borrower a premium charge or fee > related to renewing or replacing existing force-placed insurance, > [LENDER] must: (i) deliver or place in the mail a written notice > containing the §1024.37(e)(2) information at least 45 days before > assessing the charge or fee; and (ii) by the end of the 45-day > period beginning on the date the notice was delivered or placed in > the mail, not have received from the borrower or otherwise > evidence demonstrating the borrower has purchased hazard insurance > coverage complying with the loan contract. **Compliance obligation:** > For every renewal or replacement of force-placed insurance, can [LENDER] produce the §1024.37(e)(1)(i) written renewal notice with §1024.37(e)(2) content delivered or mailed at least 45 days before the renewal/replacement charge, plus evidence that no proof of borrower-purchased hazard coverage was received during the 45-day window? **Verbatim regulator text:** ``` (e) Renewing or replacing force-placed insurance —(1) In general. Before a servicer assesses on a borrower a premium charge or fee related to renewing or replacing existing force-placed insurance, a servicer must: ``` _Authority_: 12 CFR §1024.37(e)(1) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(g) — Cancel and refund force-placed insurance within 15 days of coverage evidence **Obligation ID:** `reg-x-1024.37-g-cancellation-refund-15-day` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-fpi-cancellation **Operative duty (lender voice):** > Within 15 days of receiving, from the borrower or otherwise, > evidence demonstrating that the borrower has had in place hazard > insurance coverage that complies with the loan contract's > requirements to maintain hazard insurance, [LENDER] must: (1) > cancel the force-placed insurance [LENDER] purchased to insure the > borrower's property; and (2) refund to the borrower all > force-placed-insurance premium charges and related fees paid by the > borrower for any period of overlapping insurance coverage and > remove from the borrower's account all such charges and related > fees for that period. **Compliance obligation:** > For every borrower who provides evidence of compliant hazard insurance coverage, can [LENDER] evidence that within 15 days [LENDER] (i) cancelled the force-placed policy and (ii) refunded all premium charges and related fees for any overlapping-coverage period and removed those charges from the borrower's account? **Verbatim regulator text:** ``` (g) Cancellation of force-placed insurance. Within 15 days of receiving, from the borrower or otherwise, evidence demonstrating that the borrower has had in place hazard insurance coverage that complies with the loan contract's requirements to maintain hazard insurance , a servicer must: ``` _Authority_: 12 CFR §1024.37(g) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(h)(1) — Force-placed-insurance charges must be bona fide and reasonable **Obligation ID:** `reg-x-1024.37-h1-bona-fide-reasonable-charges` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-fpi-charge **Operative duty (lender voice):** > Except for charges subject to State regulation as the business of > insurance and charges authorized by the Flood Disaster Protection > Act of 1973, all charges related to force-placed insurance assessed > to a borrower by or through [LENDER] must be bona fide and > reasonable — that is, charges for services actually performed that > bear a reasonable relationship to [LENDER]'s cost of providing the > service and are not otherwise prohibited by applicable law. **Compliance obligation:** > For every force-placed-insurance charge assessed to a borrower (other than State-business-of-insurance charges or FDPA-authorized charges), can [LENDER] document that the charge is for a service actually performed and bears a reasonable relationship to [LENDER]'s cost of providing the service? **Verbatim regulator text:** ``` (h) Limitations on force-placed insurance charges —(1) In general. Except for charges subject to State regulation as the business of insurance and charges authorized by the Flood Disaster Protection Act of 1973 , all charges related to force-placed insurance assessed to a borrower by or through the servicer must be bona fide and reasonable. ``` _Authority_: 12 CFR §1024.37(h)(1) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(c)(1) — Initial 45-day notice + 15-day reminder before charging — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.37-c1-initial-notice-45-day-and-reminder-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.37(c)(1) — Initial 45-day notice + 15-day reminder before charging, dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (i) Deliver to a borrower or place in the mail a written notice containing the information required by paragraph (c)(2) of this section at least 45 days before a servicer assesses on a borrower such charge or fee; (ii) Deliver to the borrower or place in the mail a written notice in accordance with paragraph (d)(1) of this section; and (iii) By the end of the 15-day period beginning on the date the written notice described in paragraph (c)(1)(ii) of this section was delivered to the borrower or placed in the mail, not have received, from the borrower or otherwise, evidence demonstrating that the borrower has had in place, continuously, hazard insurance coverage that complies with the loan contract's requirements to maintain hazard insurance . ``` _Authority_: 12 CFR §1024.37(c)(1) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(e)(1) — 45-day notice before renewing or replacing force-placed insurance — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.37-e1-renewal-replacement-45-day-notice-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.37(e)(1) — 45-day notice before renewing or replacing force-placed insurance, dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (i) Deliver to the borrower or place in the mail a written notice containing the information set forth in paragraph (e)(2) of this section at least 45 days before assessing on a borrower such charge or fee; and (ii) By the end of the 45-day period beginning on the date the written notice required by paragraph (e)(1)(i) of this section was delivered to the borrower or placed in the mail, not have received, from the borrower or otherwise, evidence demonstrating that the borrower has purchased hazard insurance coverage that complies with the loan contract's requirements to maintain hazard insurance . (iii) Charging a borrower before end of notice period. Notwithstanding paragraphs (e)(1)(i) and (ii) of this section, if not prohibited by State or other applicable law, if a servicer has renewed or replaced existing force-placed insurance and receives evidence demonstrating that the borrower lacked insurance coverage for some period of time following the expiration of the existing force-placed insurance (including during the notice period prescribed by paragraph (e)(1) of this section), the servicer may, promptly upon receiving such evidence, assess on the borrower a premium charge or fee related to renewing or replacing existing force-placed insurance for that period of time. ``` _Authority_: 12 CFR §1024.37(e)(1) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(g) — Cancel and refund force-placed insurance within 15 days of coverage evidence — enumerated items (chapeau recall fix) **Obligation ID:** `reg-x-1024.37-g-cancellation-refund-15-day-enumerated-items` **Operative duty (lender voice):** > The enumerated provisions following the chapeau of 12 CFR §1024.37(g) — Cancel and refund force-placed insurance within 15 days of coverage evidence, dropped by the original extraction and restored verbatim from the snapshot. **Verbatim regulator text:** ``` (1) Cancel the force-placed insurance the servicer purchased to insure the borrower's property; and (2) Refund to such borrower all force-placed insurance premium charges and related fees paid by such borrower for any period of overlapping insurance coverage and remove from the borrower's account all force-placed insurance charges and related fees for such period that the servicer has assessed to the borrower. ``` _Authority_: 12 CFR §1024.37(g) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- ---