On Mar. 6, 2025, HUD issued Lender Letter 2025-04 to extend HUD's Section 184 and Section 184A Loss Mitigation Options, that were established in foregoing lender letters.
Document dated Mar. 6, 2025, received from HUD Mar. 12, summarized on Mar. 17.
Options may be offered through Dec. 30, 2025, must be completed by Jan. 31, 2026.
Lender Letter 2024-05 became effective immediately, superseded letter 2024-07.
Also, 2024-05 extended Lender letter 2023-04, Lender letter 2023-09, see #182024.
HUD welcomed feedback from interested parties for 30 calendar days, Apr. 5, 2025.
On Aug. 22, HUD issued letter to extend COVID-19 recovery options.
HUD Lender Letter 2024-07 extended COVID-19 recovery loss mitigation options.
Follows 2023 HUD lender letters to extend Covid loss mitigation options, see #182024.
Also follows HUD final rule updating S. 184 home loan guarantee program, #155188.
Recovery Options
LL 2024-07 guidance applies to the HUD Section 184 and Section 184A programs.
In May 2023, S. 184 program extended and expanded its COVID-19 loss mitigation options under LL 2023-04 and clarified extent of those options under LL 2023-09.
HUD is aligning expiration of COVID recovery options to compliance date of final rule.
In order to have effective transition between loss mitigation options established in LL 2023-04 and 2023-09 and the loss mitigation requirements of the final rule.
The COVID-19 recovery loss mitigation options (recovery options) may be offered through, but no later than, Feb. 28, 2025, and completed no later than Mar. 31, 2025.
COVID-19 recovery modifications must comply with Ginnie Mae's mortgage-backed securities requirement; to be 90 days delinquent before bought out of Ginnie Mae pool.
Effectiveness
Lender letter is effective immediately.
Mar. 2025 HUD Loss Mitigation Extension
On Mar. 6, 2025, HUD issued Lender Letter 2025-04 to extend HUD's Section 184 and Section 184A Loss Mitigation Options, that were established in foregoing lender letters.
Document dated Mar. 6, 2025, received from HUD Mar. 12, summarized on Mar. 17.
Options may be offered through Dec. 30, 2025, must be completed by Jan. 31, 2026.
Lender Letter 2024-05 became effective immediately, superseded letter 2024-07.
Also, 2024-05 extended Lender letter 2023-04, Lender letter 2023-09, see #182024.
HUD welcomed feedback from interested parties for 30 calendar days, Apr. 5, 2025.
