On Apr. 28, HUD updated handbook to reflect ineffective programs.
HUD issued ML 2025-13, regarding updates to claims without conveyance of title, post-foreclosure sales period, HUD real estate owned properties exclusive listing period
Replaces policies established in ML 2022-01 and ML 2022-08, see #126467, #137377.
Mortgagee Letter Highlights
Applies to claims without conveyance of title (CWCOT) post-foreclosure sales efforts and HUD’s single family (one- to four-unit) real estate owned (REO) properties.
ML 2022-01 expanded the exclusive listing period for REO properties, while ML 2022-08 aimed to expand the affordable housing supply through FHFA's CWCOT process.
These two MLs intended to make more properties available directly to future homeowners via programs run by HUD approved nonprofits or government entities.
HUD data over past several years show these efforts have not performed as desired.
Therefore MLs are being replaced and the Handbook is being updated accordingly.
Handbook updates include CWCOT post-foreclosure sales period; eliminates exclusive post-foreclosure sales period; and eliminates extended post-foreclosure sales period.
Updates single family default reporting requirements and submission of claim forms.
Restores previous language in exclusive listing period and extended listing period.
Effectiveness
CWCOT provisions must be implemented for all post-foreclosure sales associated with defaulted FHA-insured mortgages scheduled to occur on or after May 30, 2025.
REO provisions implemented for HUD REO properties listed on/after May 30, 2025.
Regulators
HUD
Entity Types
Bank; CNSM; CU; MG Orig; Servicer; Thrift
Reference
Lt, ML 2025-13, 4/28/2025; Citation: HUD Handbook 4000.1;
