HUD Payment Supplement Loss Claim

On Mar. 25, HUD provided data on FHA claims module obligations.

  • HUD, FHA published FHA Info 2024-11 on payment supplement loss mitigation claims.
  • Follows HUD FHA Feb. 2024 Mortgagee Letter (ML) ML 2024-02, see #201940.
  • Claims Module Information
  • ML set payment supplement loss mitigation option for effect May 1, 2024 and to be implemented by Jan. 1, 2025 for Title II single family forward mortgage programs.
  • Provides option for partial claim to be added to bring mortgages current with new Monthly Principal Reduction (MoPR) payment and reduce payment for up to 3 years.
  • ML provides updates on transfer of servicing rights, loss mitigation option suspension through Apr. 30, 2025, advance loan modifications by May 30, 2025, MoPR calculation.
  • FHA Info 2024-11 provides information on updated FHA claims module, Claim Type 33.
  • Effectiveness
  • Mortgagees must use updated claims XML v1.8 for submissions beginning on May 1.

Regulators Fannie; Freddie; HUD
Entity Types Bank; CU; MG Orig; Servicer; Thrift
Reference HUD: Info, 2024-11, 3/25/2024; FHA: Info, ML2024-02, 2/21/2024;
Functions Compliance; Financial; Legal; Operations; Registration/Licensing; Training
Countries United States of America
Products Banking; Loan; Mortgage
Regions Am
Rule Type Final
Rule Date 3/25/2024
Effective Date 5/1/2024
Rule Id 206216
Linked to Rule :201940
Reg. Last Update 3/25/2024
Report Section US Consumer

Last substantive update on 03/31/2024