On Dec. 4, HUD issued rules on engagement with borrowers in default
HUD issued Mortgagee Letter 2024-24 to modernize requirements for a Loss Mitigation Consultation with Borrowers in default, re Title II single family forward mortgages.
Follows HUD proposed modernized mortgagor communication update, see #180838.
Highlights
Consultation allows borrower to meet with mortgagee employees about loss mitigation options and assists borrower in bringing mortgage current and avoids foreclosure.
Also updates the requirements for mortgagees to meet with borrowers in default.
Establishes HUD’s policy to align with the regulatory changes and provides further guidance on how to arrange, conduct, and follow up on loss mitigation consultation.
Allow mortgagees range of communication to meet borrowers at their convenience.
Letter also contained alternative interim procedures for engaging borrowers in default.
Effectiveness
Provided interim procedures are effective Jan. 1, 2025, through Jun. 30, 2025.
Permanent provisions may be implemented immediately but must by Jul. 1, 2025
Regulators
HUD
Entity Types
Bank; MG Orig; Servicer; Thrift
Reference
Lt 2024-24, FHA INFO 2024-86, 12/4/2024
Functions
Compliance; Financial; Legal; Operations; Registration/Licensing; Training
