FHA Mortgagee Letter 2023-11 — Update to ML 2023-03 Regarding Loss Mitigation Options for Non- Borrowers Who Acquired Title through an Exempted Transfer
HUD ML 2023-11 reinstates FHA-HAMP Loss Mitigation for Mortgagees to review Non-Borrowers Who Acquired Title through an Exempted Transfer (III.A.2.j.ii(A)(4)(b)) and are in Default or Imminent Default, while leaving all other Borrowers under the COVID-19 Recovery Home Retention Options through October 30, 2024.
Verbatim regulatory text
Verbatim provisions from FHA Mortgagee Letter 2023-11 — Update to ML 2023-03 Regarding Loss Mitigation Options for Non- Borrowers Who Acquired Title through an Exempted Transfer — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
HUD ML 2023-11 — Effective Date
The provisions of this ML may be implemented immediately but must be implemented no later than July 21, 2023.
HUD ML 2023-11 — Non-Borrowers Who Acquired Title through an Exempted Transfer Not Eligible for COVID-19 Recovery Options (III.A.2.o.iii(B))
Non-Borrowers Who Acquired Title through an Exempted Transfer (III.A.2.j.ii(A)(4)(b)) are not eligible for the COVID-19 Recovery Options and must be evaluated for FHA’s standard Loss Mitigation Options (III.A.2.j).
FHA Mortgagee Letter 2023-11 — Update to ML 2023-03 Regarding Loss Mitigation Options for Non- Borrowers Who Acquired Title through an Exempted Transfer — Purpose
This Mortgagee Letter (ML) clarifies loss mitigation options for non- borrowers who acquired title through an exempted transfer.
FHA Mortgagee Letter 2023-11 — Update to ML 2023-03 Regarding Loss Mitigation Options for Non- Borrowers Who Acquired Title through an Exempted Transfer — Effective Date
The provisions of this ML may be implemented immediately but must be implemented no later than July 21, 2023. All updates will be incorporated into a forthcoming update of the HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook (Handbook 4000.1).
FHA Mortgagee Letter 2023-11 — Update to ML 2023-03 Regarding Loss Mitigation Options for Non- Borrowers Who Acquired Title through an Exempted Transfer — Affected Programs
The provisions of this ML apply to all FHA Title II Single Family forward mortgage programs.
FHA Mortgagee Letter 2023-11 — Update to ML 2023-03 Regarding Loss Mitigation Options for Non- Borrowers Who Acquired Title through an Exempted Transfer — Background
Mortgagee Letter (ML) 2023-03 expanded the COVID-19 Recovery Loss Mitigation Options and temporarily suspended the use of Federal Housing Administration Home Affordable Modification Program (FHA-HAMP) Loss Mitigation for all Borrowers. Consequently, after publication of ML 2023-03, Mortgagees could no longer review non-borrowers who acquired title through an exempted transfer for FHA-HAMP Loss Mitigation, effectively making them temporarily ineligible for FHA Loss Mitigation. Through this ML, FHA is reinstating FHA-HAMP Loss Mitigation for Mortgagees to review non-borrowers who acquired title through an exempted transfer and are in Default or Imminent Default.
FHA Mortgagee Letter 2023-11 — Update to ML 2023-03 Regarding Loss Mitigation Options for Non- Borrowers Who Acquired Title through an Exempted Transfer — Summary of Changes
This ML updates: • HUD’s Loss Mitigation Program – Definitions (III.A.2.j.i); • FHA-HAMP – Eligibility (III.A.2.k.v(B)); • COVID-19 Advance Loan Modification (Pre-Waterfall Step) (III.A.2.o.ii.); and • COVID-19 Recovery Loss Mitigation Options – Standard (III.A.2.o.iii). FHA Single Family Housing Policy Handbook 4000.1 The policy changes will be incorporated into Handbook 4000.1 as follows: HUD’s Loss Mitigation Program (III.A.2.j) i. Definitions HUD’s Loss Mitigation Options are intended to minimize economic impact to the MMIF and to avoid foreclosure, when possible. The Loss Mitigation Options are: • Informal or Formal Forbearance • Special Forbearance (SFB)-Unemployment • FHA-Home Affordable Modification Program (FHA-HAMP) Loan Modification, FHA-HAMP Standalone Partial Claim, and FHA- HAMP Combination Loan Modification/Partial Claim o All FHA-HAMP Options are temporarily suspended and must not be offered through October 30, 2024, except for Non- Borrowers Who Acquired Title through an Exempted Transfer (III.A.2.j.ii(A)(4)(b)). Mortgagees must evaluate all other Borrowers for the COVID-19 Recovery Home Retention Options. • Pre-Foreclosure Sale (PFS) o Standard PFS is temporarily suspended and must not be offered through October 30, 2024, except for Non-Borrowers Who Acquired Title through an Exempted Transfer (III.A.2.j.ii(A)(4)(b)). Mortgagees must evaluate all other eligible Borrowers for the COVID-19 PFS (III.A.2.o.iii(D)(1)). • Deed-in-Lieu (DIL) of Foreclosure o Standard DIL is temporarily suspended and must not be offered through October 30, 2024, except for Non-Borrowers Who Acquired Title through an Exempted Transfer (III.A.2.j.ii(A)(4)(b)). Mortgagees must evaluate all other eligible Borrowers for the COVID-19 DIL (III.A.2.o.iii(D)(2)). For Borrowers affected by a non-COVID-19 Presidentially-Declared Major Disaster Area (PDMDA) or a COVID-19 PDMDA and National Emergency, the Mortgagee must comply with the Loss Mitigation requirements in Loss Mitigation for Borrowers in PDMDAs (III.A.2.n.iv(A)). FHA-HAMP (Temporarily Suspended) (III.A.2.k.v) (B) Eligibility All FHA-HAMP Options are temporarily suspended and must not be offered through October 30, 2024, except for Non-Borrowers Who Acquired Title through an Exempted Transfer (III.A.2.j.ii(A)(4)(b)). Mortgagees must evaluate all other Borrowers for the COVID-19 Recovery Home Retention Options. Presidentially-Declared COVID-19 National Emergency (III.A.2.o) ii. COVID-19 Advance Loan Modification (Pre-Waterfall Step) The Mortgagee must review eligible Borrowers for a COVID-19 Advance Loan Modification (COVID-19 ALM). Non-Borrowers Who Acquired Title through an Exempted Transfer (III.A.2.j.ii(A)(4)(b)) are not eligible for the COVID-19 ALM and must be evaluated for FHA’s standard Loss Mitigation Options (III.A.2.j). COVID-19 Recovery Loss Mitigation Options (III.A.2.o.iii) (B) Standard The Mortgagee must review eligible Borrowers for the COVID-19 Recovery Options. Eligible Borrowers may receive more than one COVID- 19 Recovery Option. Non-Borrowers Who Acquired Title through an Exempted Transfer (III.A.2.j.ii(A)(4)(b)) are not eligible for the COVID-19 Recovery Options and must be evaluated for FHA’s standard Loss Mitigation Options (III.A.2.j).
Operationalizing FHA Mortgagee Letter 2023-11 — Update to ML 2023-03 Regarding Loss Mitigation Options for Non- Borrowers Who Acquired Title through an Exempted Transfer
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Source of record: https://claudeforcompliance.com/regs/hud-ml-2023-11/
· register hud-ml-2023-11 · Claude for Compliance. Free to read and download;
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