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.
Consultation
HUD welcomes feedback from interested parties for a period of 30 calendar days.
Effectiveness
ML 2023-11 may be implemented immediately, but no later than Jul. 21, 2023.
