On Nov. 21, 2024, HUD FHA extended the compliance date for certain provisions.
Required mortgagees to conduct meetings with all mortgagors in default, removing 2 exceptions to meeting requirement if mortgagor does not reside in mortgaged property
Or if mortgaged property is not within 200 miles of mortgagee/servicer/branch office.
Extension effectively preserves 2 exceptions to meeting requirement until Jul. 1, 2025.
In Dec. 2024, HUD issued rules on engagement with borrowers in default, #235698.
On Jul. 31, HUD proposed default mortgagor communication update.
HUD proposed to modernize methods of communication with default mortgagors.
Amended 24 CFR 203.604 (mortgagor contact) to align with technology advances.
Proposal Provisions
Specifically, this rule proposes to update HUD's current in-person, face-to-face meeting requirements by permitting mortgagees to utilize updated methods of communication.
Methods would include electronic and other remote communication methods, such as telephone calls or video calls, to meet with mortgagors who are in default on payments
Proposed rule would also expand the meeting requirement to all mortgagors in default.
Expansion included mortgagors with property not within 200 miles of their mortgagee.
Consultation
Comments submitted electronically or by mail, must be received by Sep. 29, 2023.
Aug. 2, 2024 HUD Final Rule
On Aug. 2, 2024, HUD published final rule to modernize communication with default mortgagors, and adopts the proposed rule with minor, non substantive changes.
In the implementation phase, HUD will consider how to address documenting meeting details, to promote mortgagor understanding and focus HUD's compliant oversight.
Will also consider what information mortgagees will provide to the mortgagors prior to any meeting, and how mortgagors will select their preferred method of meeting.
Final rule re modern communication for default mortgagors, is effective Jan. 1, 2025.
Aug. 2, 2024 HUD FHA Pending Mortgagee Letter
On Aug. 2, 2024, HUD Federal Housing Administration (FHA) notified the agency will soon post a draft of the Mortgagee letter (ML) to implement HUD final rule provisions.
ML draft will be published to the FHA Office of Single Family Housing drafting table site
FHA will consider stakeholder feedback received before publishing the final ML letter.
COVID pandemic-era exemption to allow electronic or remote means of communication remains active through Jan. 1, 2025 at which point HUD final rule comes into effect.
In Aug. 2024, HUD posted draft mortgagee letter to implement final rule, #222942.
Nov. 2024 HUD Compliance Date Extension
On Nov. 21, 2024, HUD FHA extended the compliance date for certain provisions.
Required mortgagees to conduct meetings with all mortgagors in default, removing 2 exceptions to meeting requirement if mortgagor does not reside in mortgaged property
Or if mortgaged property is not within 200 miles of mortgagee/servicer/branch office.
Extension effectively preserves 2 exceptions to meeting requirement until Jul. 1, 2025.
In Dec. 2024, HUD issued rules on engagement with borrowers in default, #235698.
Regulators
HUD
Entity Types
Bank; CNSM; MG Orig; Servicer; Thrift
Reference
INFO 2024-80, 89 FR 92033, 11/21/2024; Info 2024-53, 8/2/2024; 89 FR 63082, 8/2/2024; 88 FR 49392, 7/31/2023; Docket FR-6353-P-01, FR-6353-F-02; RIN 2502-AJ66; COVID-19; Citation: 24 CFR 203.604;
