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.
  • 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.

Regulators HUD
Entity Types Bank; CNSM; MG Orig; Servicer; Thrift
Reference Gd, Lt ML 2023-11, 5/22/2023; COVID-19;
Functions Compliance; Financial; Legal; Operations
Countries United States of America
Category Central Government
Products Banking; Loan; Mortgage
Regions Am
Rule Type Final
Rule Date 5/22/2023
Effective Date 7/11/2023
Rule Id 173442
Linked to N/A
Reg. Last Update 5/22/2023
Report Section US Banking

Last substantive update on 05/24/2023