HUD Exempt Transfer Loss Mitigation
On May 22, HUD on loss mitigation options for some non- borrowers.
- HUD issued mortgage letter (ML) 2023-11 in order to reactivate the loss mitigation options available to non-borrowers, who acquired title through an exempted transfer.
- Loss Mitigation Options
- ML 2023-03 expanded COVID-19 recovery loss mitigation options and temporarily suspended FHA home affordable Modification Program (FHA-HAMP) loss mitigation.
- Consequently, after publication of ML 2023-03, mortgagees could no longer review non-borrowers who acquired title through an exempted transfer for FHA-HAMP.
- This effectively made them temporarily ineligible for FHA loss mitigation.
- ML 2023-11 reinstatesFHA-HAMP loss mitigation for mortgagees to review non-borrowers who acquired title via exempted transfer and are in default or imminent.
- HUD welcomes feedback from interested parties for a period of 30 calendar days.
- ML 2023-11 may be implemented immediately, but no later than Jul. 21, 2023.
||Bank; CNSM; MG Orig; Servicer; Thrift
||Gd, Lt ML 2023-11, 5/22/2023; COVID-19;
||Compliance; Financial; Legal; Operations
||United States of America
||Banking; Loan; Mortgage
|Reg. Last Update
Last substantive update on 05/24/2023