FHA Single Family Housing Policy Handbook 4000.1, Part III — k. Loss Mitigation Incentives and Title Reimbursement (10/01/2025)

FHA Single Family Housing Policy Handbook 4000.1, Part III — k. Loss Mitigation Incentives and Title Reimbursement (10/01/2025)

k. Loss Mitigation Incentives and Title Reimbursement (10/01/2025) i. Loss Mitigation Incentives The Mortgagee may claim an incentive for completion of a permanent Loss Mitigation Option if: • three or more full monthly payments are Delinquent (i.e., 61 Days or more Delinquent) when the Permanent Home Retention Option or Home Disposition Option is approved, except the Mortgage must be 31 Days or more Delinquent: • on the closing date for PFS for Servicemembers or • on the for date the DIL special warranty deed is executed for DIL for Servicemembers; • the Loss Mitigation Option was completed in accordance with FHA requirements; and III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 2. Default Servicing Handbook 4000.1 1275 Last Revised: 11/26/2025 • the correct and complete claim is submitted to HUD within 60 Days of the execution date of the Permanent Home Retention Option or Home Disposition Option. The Mortgagee may submit a claim for an incentive for the successful completion of the approved Loss Mitigation Options, including for Loss Mitigation Options associated with a PDMDA (also referred to as Disaster options), listed below. Loss Mitigation Option Mortgagee Incentive Partial Claim $500 for a Partial Claim Loan Modification (including OWL) $750 for a Loan Modification *Additionally, the Mortgagee is eligible to be reimbursed up to $250 for fees associated with title search, title policy, and/or recordation. Payment Supplement $1,750 PFS $1,000 DIL $250 ii. Reimbursement for Loan Modification Title Search and Recordation The Mortgagee may submit a claim to be reimbursed up to $250 for fees associated with title search, title policy, and/or recordation associated for an executed Loan Modification where: • three or more full monthly payments are Delinquent (i.e., 61 Days or more Delinquent) when the Standalone Loan Modification, Combination Loan Modification and Partial Claim, or OWL is approved; • the Loss Mitigation Option was completed in accordance with FHA requirements; and • the correct and complete claim for $250 is 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. The claim for reimbursement up to $250 for fees associated with title search, title policy, and/or recordation may be included with the claim for a Mortgagee incentive. Mortgagees that do not qualify for an incentive may still submit a claim for this reimbursement.

Source: FHA Single Family Housing Policy Handbook 4000.1, Part III — k. Loss Mitigation Incentives and Title Reimbursement (10/01/2025) · source URL · snapshot 8c03836f77f317e1