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WBK Industry News - Federal Regulatory Developments

FHA Issues Mortgagee Letters Updating Servicing Requirements

On February 5, 2016, FHA issued Mortgagee Letters that update and provide guidance to lenders in servicing FHA insured mortgages. The mortgagee letters cover the following topics:

  • Preservation and Protection (P&P) Requirements and Cost Reimbursement Procedures for Title II Forward Mortgages and Home Equity Conversion Mortgages (HECMs).
  • Single Family Foreclosure Policy and Procedural Changes for HUD Title II Forward Mortgages and Reverse Mortgages.
  • Automatic Extensions to HUD’s Initiation of Foreclosure Timeline.

Mortgagee Letter 16-02: Update of Preservation and Protection (P&P) Requirements and Cost Reimbursement Procedures for Title II forward mortgages and home equity conversion mortgages.

Effective Date: February 1, 2016

Mortgagee Letter 16-03: Single Family Foreclosure Policy and Procedural Changes for HUD Title II Forward Mortgages and Reverse Mortgages.

Effective Date: All cases in which the deadline for taking the First Legal Action to initiate foreclosure occurs on or after January 1, 2016

Mortgagee Letter 16-04: Automatic Extensions to HUD’s Initiation of Foreclosure Timeline.

Effective Date: All FHA insured mortgages in default on or after October 1, 2015