HUD Mortgagee Letter 2024-17

hud-ml-2024-17

HUD Mortgagee Letter 2024-17. See obligation entries for operative requirements and verbatim primary-source citations.

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source:
  type: regulation
  id: hud-ml-2024-17
  authority: HUD Mortgagee Letter 2024-17
  description: |
    HUD Mortgagee Letter 2024-17. See obligation entries for operative
    requirements and verbatim primary-source citations.
obligations:
  - id: hud-ml-2024-17-sip-submission-standard
    canonical_id: hud-ml-2024-17-sip-submission-standard
    section: HUD ML 2024-17 — Optional Interim Exception for Nonjudicial Foreclosures (b) Standard
    description: |
      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.
    type: do
    audit_question: 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?
    program_review: Does the program account for the optional-SIP conditions — using the procedure to release a subordinate Secretary-held lien only where the nonjudicial sale produced no Surplus Funds and nonjudicial is the state's Preferred Method of Foreclosure, with applicable-law compliance maintained for any federal non-Secretary-held liens?
    file_review: Spot-check SIP-release requests; confirm no Surplus Funds, nonjudicial as the state's Preferred Method, and applicable-law compliance for any federal non-Secretary-held liens.
    judgment: false
    feeds:
      - hud-ml-2024-17-claim-file-retention
    workflow_phase: servicing
    owner_role: default_servicing_analyst
    secondary_owner_role: compliance_officer
    cadence: per-foreclosure
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - hud-ml
      - fha
      - servicing
      - foreclosure
      - secretary-held-lien
      - nonjudicial
      - promoted
    primary_source:
      tier: 1
      authority: HUD ML 2024-17 — Optional Interim Exception (b) Standard
      source_class: hud-ml-pdf
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2024-17hsgml.pdf
      snapshot_id: 9837ce0b1b5cee8c
      fetched_at: '2026-05-22T19:54:51Z'
      content_hash: sha256:07b849f1cf06e887d26dab5ade297ee5fbf37edc0295544eb9ffe61c5141cb42
      paragraph_quote: |-
        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.
      drafter_attestation: |
        Copied verbatim from snapshot 9837ce0b1b5cee8c (content.txt) at
        2026-05-22T20:14Z. Substring is the (b) Standard operative
        restriction of ML 2024-17's optional interim procedure.
    promoted_at: '2026-05-22T20:17:33+00:00'
    promoted_from: hud-ml-2024-17-roundb-v1.yaml
  - id: hud-ml-2024-17-claim-file-retention
    canonical_id: hud-ml-2024-17-claim-file-retention
    section: HUD ML 2024-17 — Optional Interim Exception (c) Required Documentation
    description: |
      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.
    type: do
    audit_question: 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)?
    program_review: Do the P&Ps ensure the information submitted to HUD through SIP is retained in the claim file (case number, sale date, bid amounts, foreclosure-attorney details, winning-bidder type, foreclosure method, no-Surplus-Funds certification)?
    file_review: Pull SIP-release files; confirm the claim file contains the documentation of the information submitted to HUD through SIP.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: default_servicing_analyst
    secondary_owner_role: compliance_officer
    cadence: per-foreclosure
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - hud-ml
      - fha
      - servicing
      - foreclosure
      - claim-file
      - recordkeeping
      - promoted
    primary_source:
      tier: 1
      authority: HUD ML 2024-17 — Optional Interim Exception (c) Required Documentation
      source_class: hud-ml-pdf
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2024-17hsgml.pdf
      snapshot_id: 9837ce0b1b5cee8c
      fetched_at: '2026-05-22T19:54:51Z'
      content_hash: sha256:07b849f1cf06e887d26dab5ade297ee5fbf37edc0295544eb9ffe61c5141cb42
      paragraph_quote: |-
        The Mortgagee must retain documentation of the information submitted to 
        HUD through SIP in their claim file.
      drafter_attestation: |
        Copied verbatim from snapshot 9837ce0b1b5cee8c (content.txt) at
        2026-05-22T20:14Z. Substring is the (c) Required Documentation
        retention requirement of ML 2024-17.
    promoted_at: '2026-05-22T20:17:33+00:00'
    promoted_from: hud-ml-2024-17-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-22T20:17:33+00:00'
    candidate_path: obligations\_remediation\_round_b_drafts\hud-ml-2024-17-roundb-v1.yaml
    candidates_promoted: 2
    candidates_skipped_existing: 0

Verbatim regulatory text (2)

Verbatim provisions from HUD Mortgagee Letter 2024-17 — 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 2024-17 — Optional Interim Exception for Nonjudicial Foreclosures (b) Standard

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.

Source: HUD ML 2024-17 — Optional Interim Exception (b) Standard · source URL · snapshot 9837ce0b1b5cee8c

HUD ML 2024-17 — Optional Interim Exception (c) Required Documentation

The Mortgagee must retain documentation of the information submitted to HUD through SIP in their claim file.

Source: HUD ML 2024-17 — Optional Interim Exception (c) Required Documentation · source URL · snapshot 9837ce0b1b5cee8c