FHA INFO Messages: Single Family Housing Industry News

For lenders, servicers, appraisers, and others working with FHA Single Family insurance. FHA INFO messages contain FHA Single Family Housing news including policy announcements, Mortgagee Letters, Federal Register notices, Single Family Housing Handbook updates, training and educational offerings, and more.

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July 2025

FHA INFO 2025-37 - Upcoming Update to XML File Format for Bulk and API Submissions to Support FHA’s New Loss Mitigation Requirements

July 24, 2025 - On April 15, 2025, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2025-12, Tightening and Expediting Implementation of the New Permanent Loss Mitigation Options, which included important revisions to FHA’s new permanent loss mitigation waterfall, originally outlined in ML 2025-06, Updates to Servicing, Loss Mitigation, and Claims, and Appendix 4.0 of its Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1), dated January 16, 2025. These policies become effective on October 1, 2025.

Today, FHA is announcing that the revised XML file format for ML 2025-12 - which is being updated to reflect new data standards and submission requirements needed for implementation of bulk and API submissions in FHA Catalyst - will be available on August 20, 2025, on the FHA Catalyst webpage.

This revised XML file format also includes updates reflected in the Single Family Default Monitoring System (SFDMS) Reporting Codes and Reporting Data Elements, and the Claim Filing Technical Guide, in connection with ML 2025-12.

Mortgagees and other stakeholders in FHA transactions should contact the FHA Resource Center (referenced below) with questions.

FHA INFO 2025-36 - Reminder Guidance for FHA-Approved Mortgages Regarding Claims Without Conveyance of Title Bidding Policy

July 23, 2025 - Today, the Federal Housing Administration (FHA) is reminding mortgagees about its Claims Without Conveyance of Title (CWCOT) bidding policy. Rather than conveying the property and title to HUD after a foreclosure, the CWCOT program allows mortgagees to market the property through foreclosure sale or post-foreclosure sale to third parties. This reduces losses to FHA’s Mutual Mortgage Insurance Fund (MMIF) while expediting the return of foreclosed properties to the market and decreasing neighborhood blight.

The CWCOT program uses the Commissioner’s Adjusted Fair Market Value (CAFMV). The CAFMV represents HUD’s estimate of the property’s market value, adjusted by “haircuts” to account for expected expenses and risks related to resale, such as repair costs, marketing time, and local market conditions. HUD regularly refines adjustments to the CAFMV to more precisely estimate the value of foreclosed properties.

Under CWCOT, mortgagees are required to submit a foreclosure sale bid at either:

the Commissioner’s Adjusted Fair Market Value (CAFMV), or
the state-mandated foreclosure price, where applicable.

Mortgagees are required to use CAFMV at post-foreclosure sales opportunities, also known as “second chance” sales. It is important to note that the total outstanding borrower’s debt to the mortgagee is not equivalent to the CAFMV.

As stated in the FHA Single Family Housing Claim Filing Technical Guide, in their claim submission for CWCOT, mortgagees must include on Form HUD-27011 the greater of:

the CAFMV;
the foreclosure sale price (the actual amount of the winning bid at the foreclosure sale where the property was sold to the mortgagee or third party; not the net proceeds amount); or
the redemption price (the actual redemption price figure, not the amount of redemption proceeds received by the mortgagee) in Item 108.

Surplus funds can be claimed in Item 305.

FHA acknowledges that in some cases a mortgagee’s total debt may be lower than the CAFMV, which may require mortgagees to advance funds at the foreclosure sale. HUD believes, in many cases, improved CAFMV haircuts will help close this gap, thus reducing the mortgagee’s financial burden in these instances.

To further improve the accuracy and effectiveness of foreclosure sale bids under CWCOT, on July 17, 2025, FHA updated its haircut methodology by increasing the geographic granularity of the applied discounts. These changes are designed to better reflect local market conditions by providing more specific discounts for Metropolitan Statistical Areas (MSAs) instead of state-wide discounts, where sufficient data is available. FHA’s analysis shows that under its previous CAFMV haircuts, total debt was below CAFMV in approximately 37 percent of cases from January 2024 through March 2025. Under the enhanced, more granular geographic haircuts, FHA estimates the percentage will be reduced substantially to somewhere between 10 percent and 20 percent.

The updated haircut methodology will be effective for foreclosure sales and post-foreclosure sales efforts scheduled on or after September 15, 2025.

Additionally, FHA is actively working to incorporate more robust and refined data into its modeling and valuation processes to further improve its haircuts. This ongoing improvement aims to ensure that CAFMV estimates are as precise and closely aligned to the market as possible.

If you have questions or need additional information regarding HUD’s CWCOT Bidding Policy, contact the FHA Resource Center.

FHA INFO 2025-35 - Presidentially-Declared Major Disaster Area Declaration in Texas Updated to Include Additional Counties, FHA Reminds FHA-Approved Mortgagees of its Guidance

July 17, 2025 - The Presidentially-Declared Major Disaster Area (PDMDA) declaration in Texas (DR-4879-TX) — originally issued on July 6, 2025, due to the recent catastrophic flooding across the State — was updated on July 13, 2025, to include additional counties.

With this update, the following counties are now approved for the Federal Emergency Management Agency (FEMA) Individual and/or Public Assistance programs: Burnet, Kendall, Kerr, Kimble, Llano, Mason, McCulloch, Menard, San Saba, Tom Green, Travis, and Williamson counties.

Considering this, FHA reminds mortgagees about its guidance for servicing and/or originating FHA-insured forward mortgages and Home Equity Conversion Mortgages (HECM) in locations within the U.S. and its territories where the President has declared a major disaster under the Stafford Act.

This declaration is made when natural disasters or other events are of such severity that it is beyond the combined capabilities of state and local governments to respond.

This guidance serves as a reminder that applies to all Presidentially-Declared Major Disaster Areas (PDMDAs), which can be found in the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1), unless communicated otherwise through waivers or Mortgagee Letters.

Loan Servicing and Loss Mitigation

Forward Mortgages

FHA-insured forward mortgages secured by properties in PDMDAs are subject to a 90-day foreclosure moratorium following the disaster declaration.
The mortgagee may offer forbearance relief to borrowers with a mortgaged property or place of employment located within a PDMDA as follows:
- Informal forbearance for borrowers in PDMDAs. The mortgagee may consider borrowers in PDMDAs for an informal forbearance and may offer additional informal forbearance periods if the foreclosure moratorium is extended, as mentioned below.
- Formal forbearance for borrowers in PDMDAs. The mortgagee may consider formal forbearances for borrowers in PDMDAs while they are pursuing home repairs and/or resolving verifiable financial difficulties related to the disaster, provided that:
  - The forbearance period does not exceed the estimated time needed to complete the home repairs; and
  - The total accumulated mortgage arrearages during the forbearance period do not exceed the equivalent of 12 months of principal, interest, taxes, and insurance (PITI).
- For any buildings in a PDMDA that are substantially damaged, mortgagees must follow the guidance in Handbook 4000.1 Section III.A.2.n.iii, Monitoring of Repairs to Substantially Damaged Homes.

Mortgagees are encouraged to review the servicing guidance in Section III.A.2.n of Handbook 4000.1 ;as it relates to servicing mortgages in PDMDAs.

Because of the extensive destruction in connection with the Texas severe storms, straight-line winds, and flooding and the disruption to modes of communication, mortgagees may offer and provide the forbearance unless the borrower affirmatively declines the offer.

Home Equity Conversion Mortgages

In PDMDAs, FHA provides HECM mortgagees an automatic 90-day extension from the date of the PDMDA foreclosure moratorium expiration date to commence or recommence a foreclosure action.
HECMs that become due and payable for reasons other than the death of the last surviving borrower and eligible non-borrowing spouse are subject to a 90-day extension of HECM foreclosure timelines.

Mortgagees are encouraged to review the servicing guidance outlined in Handbook 4000.1, Section III.B.3.a, relating to HECMs in PDMDAs.

Mortgage Origination

Properties Located in Presidentially-Declared Major Disaster Areas

Forward Mortgages

The mortgagee must exercise reasonable due diligence to determine if additional inspections or repairs are necessary before endorsement of all properties with pending mortgages or endorsements in areas under a PDMDA designated for individual assistance. The mortgagee must determine if a PDMDA has adversely affected the property’s ability to serve as collateral for the Mortgage.
The mortgagee must determine if a PDMDA has adversely affected the property’s ability to serve as collateral for the mortgage.
If repairs are required, they must be completed prior to endorsement, unless the property is habitable and a repair escrow has been established in accordance with Repair Completion Escrow Requirements (II.A.6.a.viii(B)).
The mortgagee must document any information relied upon to make their determination if additional inspections or repairs are necessary. If applicable, copies of any inspections and evidence of repairs or the repair escrow must be included in the Case Binder.

For additional details, refer to Mortgagee Letter 2025-19, Rescission of Mandatory Pre-endorsement Inspection Requirements for Properties Located in Presidentially-Declared Major Disaster Areas (PDMDAs) published on June 27, 2025.

Home Equity Conversion Mortgages

All properties with pending mortgages or endorsements in areas under a PDMDA designated for individual assistance must have a damage inspection report that identifies and quantifies any dwelling damage.
The damage inspection report must be completed by an FHA Roster Appraiser even if the inspection shows no damage to the property, and the report must be dated after the Incident Period (as defined by the Federal Emergency Management Association) or 14 days from the incident period start date, whichever is earlier.
If the effective date of the appraisal is on or after the date required above for an inspection, a separate damage inspection report is not necessary.
All damages, regardless of amount, must be repaired by licensed contractors or per local jurisdictional requirements, and the property must be restored to pre-loss condition with appropriate and applicable documentation.

Preparing for longer-term recovery

In preparation for assisting homeowners with longer-term recovery efforts, mortgagees should also review the following:

Guidance for FHA’s 203(h) Mortgage Insurance for Disaster Victims in Section II.A.8.b of Handbook 4000.1. The 203(h) program provides mortgage insurance on mortgages used to finance the rehabilitation or reconstruction of an existing home or the purchase of another one for victims who have lost their homes due to a major disaster in a PDMDA.
Guidance for FHA’s 203(k) Rehabilitation Mortgage Insurance Program in Section II.A.8.a of Handbook 4000.1. The 203(k) program provides mortgage insurance for financing or refinancing of a home, including the cost of repairs or renovation - structural and non-structural.

Mortgagees can obtain more information about FHA’s policies — as well as specific PDMDA-related policies — in Handbook 4000.1 or by contacting the FHA Resource Center whose contact information is listed below.

Additional disaster recovery resources from HUD and other Federal and state agencies are available on HUD’s Disaster Resources web page.

FHA INFO 2025-32 - Implementation Date Extended: FHA Implements Mandatory Phishing-Resistant Multi-Factor Authentication for FHA Connection Users

July 10, 2025 - The Federal Housing Administration (FHA) has implemented a new phishing-resistant multi-factor authentication (MFA) for its FHA Connection (FHAC) system. FHA is extending the MFA implementation requirement from July 28, 2025, to October 27, 2025, by which users must implement the phishing-resistant MFA to be able to continue accessing FHAC. This MFA implementation replaces the current process communicated in an FHA INFO email on November 17, 2023.

Phishing scams are cybercrimes which are intended to gain access to online accounts or install malware to damage or steal data from a computer or network. It can take many forms, like emails, text messages, phone calls and social media posts. These messages often contain links to bogus websites but are instead designed to steal your personal and/or business information.

This new phishing-resistant MFA security feature is part of FHA’s ongoing commitment to maintaining secure lender, borrower, and stakeholder data while advancing identity management and access control capabilities. This enhancement also helps ensure that login credentials are not shared or exposed to attacks.

The phishing-resistant MFA is available now to all FHAC users and becomes mandatory beginning October 27, 2025. It is recommended that users set up and begin using this enhanced security feature as soon as possible. Users who do not implement this new security before October 27 will not be able to access FHAC. This requirement does not impact users who connect to FHAC through the Business-to-Government interface.

FHAC users have two options for setting up the phishing-resistant MFA: 1) OKTA FastPass Installation (recommended), and 2) FIDO2 Installation. Details are provided in the instructions below. Installation assistance from your IT group may be required.
If you have questions about FHA’s new FHAC phishing-resistant MFA, contact the FHA Resource Center (referenced below) for more information.

Instructions for Phishing-Resistant MFA OKTA FASTPASS and FID02 Installation

I – STEPS FOR OKTA FASTPASS INSTALLATION (Recommended):

Download OKTA Verify to your workstation. Several options are below:
- The installation routine for Windows can be found at: https://okta.hud.gov/api/v1/artifacts/WINDOWS_OKTA_VERIFY/download?releaseChannel=GA&packageType=EXE
- The installation routine for MAC OS can be found in the MAC App Store.
- The installation routine for iOS can be found in the Apple App Store.
- The installation routine for Android can be found in Google Play.
Run the installer, select the checkbox to agree to the License terms and conditions and then click the Install button.
From the Windows Start menu, open OKTA Verify.
Click Get Started.
Select Next at "How it works" screen.
In New Account, enter “hud.gov” and choose Next.
Log into OKTA with your user ID, password, and code. Set OKTA Fast Pass as your default in the new OKTA Verify browser.

You are now set up with OKTA FastPass. Next, take the following steps:

Log into FHA Connection.
Sign in using OKTA FastPass.
OKTA Verify will ask you if you are trying to sign in.
Select "Yes, it's me".
You have now successfully entered FHA Connection using Phishing Resistant MFA (OKTA FastPass).

II – STEPS FOR FIDO2 AUTHENTICATION FACTOR INSTALLATION WITHIN THE OKTA PORTAL (Requires Windows Hello or MAC/Linux equivalent):

Go to the FHA Connection home page (https://entp.hud.gov/clas/index.cfm) and click OKTA Setup.
Log into OKTA using the same user ID/Password/Factor used when logging into FHA Connection.
Click on your name at the top left corner of the screen and then select “Settings” (located on right side of the screen).
Once in Settings select Set Up for “Security Key or Biometric Authenticator”.
Following Set Up selection you will be prompted to log into FHA Connection.
Once you log in, you will be prompted to enter your FIDO2 PIN. This will have been established when you set up FIDO2 on your workstation.
You have now successfully entered FHA Connection using Phishing Resistant MFA (FIDO2).

Please note you will need to allow FIDO2, an industry standard, to be turned on to your workstation. The Windows implementation of FIDO2 is Windows Hello. MAC and Linux also have implementations of FIDO2. If you choose FIDO2, your organization will be responsible for any configuration changes to your workstation to allow FIDO2.

HUD Office of General Counsel Posts Revised Service of Civil Process on HUD

The U.S. Department of Housing and Urban Development’s Office of General Counsel has posted newly revised instructions for service of process on HUD including mailing all litigation mail to HUD offices. The newly revised instructions can be found at https://www.hud.gov/stat/ogc-service-of-process. Please note the proper location for service as detailed in the instructions in the link.

FHA INFO 2025-31 - Reminder Guidance for FHA-Approved Mortgagees Regarding Presidentially Declared Major Disaster Areas

July 10, 2025 - In the wake of the devastation caused by the Texas Severe Storms, Straight-Line Winds, and Flooding, the Federal Housing Administration (FHA) reminds mortgagees about its guidance for servicing and/or originating FHA-insured forward mortgages and Home Equity Conversion Mortgages (HECM) in locations within the U.S. and its territories where the President has declared a major disaster under the Stafford Act.

This declaration is made when natural disasters or other events are of such severity that it is beyond the combined capabilities of state and local governments to respond.

This guidance serves as a reminder that applies to all Presidentially-Declared Major Disaster Areas (PDMDAs), which can be found in the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1), unless communicated otherwise through waivers or mortgagee letters.

Loan Servicing and Loss Mitigation

Forward Mortgages

FHA-insured forward mortgages secured by properties in PDMDAs are subject to a 90-day foreclosure moratorium following the disaster declaration.
The mortgagee may offer forbearance relief to borrowers with a mortgaged property or place of employment located within a PDMDA as follows:
- Informal forbearance for borrowers in PDMDAs. The mortgagee may consider borrowers in PDMDAs for an informal forbearance and may offer additional informal forbearance periods if the foreclosure moratorium is extended, as mentioned below.
- Formal forbearance for borrowers in PDMDAs. The mortgagee may consider formal forbearances for borrowers in PDMDAs while they are pursuing home repairs and/or resolving verifiable financial difficulties related to the disaster, provided that:
  - The forbearance period does not exceed the estimated time needed to complete the home repairs; and
  - The total accumulated mortgage arrearages during the forbearance period do not exceed the equivalent of 12 months of principal, interest, taxes, and insurance (PITI).
For any buildings in a PDMDA that are substantially damaged, mortgagees must follow the guidance in Handbook 4000.1 Section III.A.2.n.iii, Monitoring of Repairs to Substantially Damaged Homes.

Mortgagees are encouraged to review the servicing guidance in Section III.A.2.n of Handbook 4000.1 as it relates to servicing mortgages in PDMDAs.

Home Equity Conversion Mortgages

In PDMDAs, FHA provides HECM mortgagees an automatic 90-day extension from the date of the PDMDA foreclosure moratorium expiration date to commence or recommence a foreclosure action.
HECMs that become due and payable for reasons other than the death of the last surviving borrower and eligible non-borrowing spouse are subject to a 90-day extension of HECM foreclosure timelines.

Mortgagees are encouraged to review the servicing guidance outlined in Handbook 4000.1, Section III.B.3.a, relating to HECMs in PDMDAs.

Mortgage Origination

Properties Located in Presidentially-Declared Major Disaster Areas

Forward Mortgages

The mortgagee must exercise reasonable due diligence to determine if additional inspections or repairs are necessary before endorsement of all properties with pending mortgages or endorsements in areas under a PDMDA designated for individual assistance. The mortgagee must determine if a PDMDA has adversely affected the property’s ability to serve as collateral for the Mortgage.
The mortgagee must determine if a PDMDA has adversely affected the property’s ability to serve as collateral for the mortgage.
If repairs are required, they must be completed prior to endorsement, unless the property is habitable and a repair escrow has been established in accordance with Repair Completion Escrow Requirements (II.A.6.a.viii(B)).
The mortgagee must document any information relied upon to make their determination if additional inspections or repairs are necessary. If applicable, copies of any inspections and evidence of repairs or the repair escrow must be included in the Case Binder.

For additional details, refer to Letter 2025-19, Rescission of Mandatory Pre-endorsement Inspection Requirements for Properties Located in Presidentially-Declared Major Disaster Areas (PDMDAs) published on June 27, 2025.

Home Equity Conversion Mortgages

All properties with pending mortgages or endorsements in areas under a PDMDA designated for individual assistance must have a damage inspection report that identifies and quantifies any dwelling damage.
The damage inspection report must be completed by an FHA Roster Appraiser even if the inspection shows no damage to the property, and the report must be dated after the Incident Period (as defined by the Federal Emergency Management Association) or 14 days from the incident period start date, whichever is earlier.
If the effective date of the appraisal is on or after the date required above for an inspection, a separate damage inspection report is not necessary.
All damages, regardless of amount, must be repaired by licensed contractors or per local jurisdictional requirements, and the property must be restored to pre-loss condition with appropriate and applicable documentation.

Preparing for longer-term recovery

In preparation for assisting homeowners with longer-term recovery efforts, mortgagees should also review the following:

Guidance for FHA’s 203(h) Mortgage Insurance for Disaster Victims in Section II.A.8.b of Handbook 4000.1. The 203(h) program provides mortgage insurance on mortgages used to finance the rehabilitation or reconstruction of an existing home or the purchase of another one for victims who have lost their homes due to a major disaster in a PDMDA.
Guidance for FHA’s 203(k) Rehabilitation Mortgage Insurance Program in Section II.A.8.a of Handbook 4000.1. The 203(k) program provides mortgage insurance for financing or refinancing of a home, including the cost of repairs or renovation – structural and non-structural.

Mortgagees can obtain more information about FHA’s policies - as well as specific PDMDA-related policies - in Handbook 4000.1 or by contacting the FHA Resource Center whose contact information is listed below.

Additional disaster recovery resources from HUD and other Federal and state agencies are available on HUD’s Disaster Resources web page.

June 2025

FHA INFO 2025-30 - FHA Slashes Red Tape in Push to Make Housing More Affordable and Accessible

June 27, 2025 - Today, the Federal Housing Administration (FHA) published a sweeping set of policy retractions for its Single Family mortgage insurance program, spanning the loan origination process from loan application through endorsement. With this set of policy retractions, FHA is cutting red tape to more effectively deliver on President Trump’s priorities to reduce the costs of homeownership for American families by removing policies that have increased regulatory and financial burdens.

Today’s policy retractions, executed through a series of Mortgagee Letters (ML), are aimed at eliminating policies that directly or indirectly increase the cost of home ownership for aspiring first-time homebuyers. In the spirit of National Homeownership Month, these changes are another direct response to President Trump’s January 20, 2025 Executive Orders aimed at reversing policies that have adversely affected key sectors of the economy, including the housing market.

Today, FHA issued:

Rescission of Outdated and Costly FHA Appraisal Protocols. This ML eliminates several antiquated and burdensome procedural steps an FHA appraiser must complete during each assignment, better aligning FHA with industry standards and reducing unnecessary costs and delays that are passed through to homebuyers. During the first Trump Administration, HUD made targeted technology investments through FHA Catalyst that have substantially improved FHA’s collateral valuation analytics. As a result, FHA is now able to extend the benefit of these investments to borrowers, lenders, and taxpayers in the form of streamlined appraisal procedures, lower costs, and quicker turn times.
Rescission of Full-Time Direct Endorsement Underwriter Requirements. This ML rescinds the full-time employment requirement for Direct Endorsement (DE) underwriter eligibility to allow part-time employment with an FHA-approved mortgagee. This update provides mortgagees with increased flexibility to more effectively manage their staffing needs, reduce origination costs, and encourage greater participation in FHA programs.
Rescission of the Supplemental Consumer Information Form Requirement. The Supplemental Consumer Information Form (SCIF) (Fannie Mae/Freddie Mac Form 1103) is used to collect information about the borrower’s language preferences. Due to its limited benefit and additional collection burden, the SCIF is no longer required to be submitted in the FHA case binder as part of the Uniform Residential Loan Application.
Rescission of Federal Flood Risk Management Standard (FFRMS) for New Construction Eligibility. FHA has rescinded ML 2024-20, which required that the lowest floor in newly constructed properties located within the one-percent-annual-chance (100-year) floodplain be built at least two feet above the Base Flood Elevation (BFE). This standard would have limited the land available for development and increased the cost of construction for FHA-insured single-family properties, thereby exacerbating the insufficient supply of affordable housing for the next generation of homebuyers. This change is necessary to restore the previously established policy and provide clarity on the current applicable standards for new construction property eligibility and documentation requirements.
Rescission of Mandatory Pre-Endorsement Inspection Requirements for Properties Located in Presidentially-Declared Major Disaster Areas (PDMDAs). This ML modifies FHA disaster inspection requirements for forward mortgages to align with the industry standard, allowing mortgagees the discretion to assess property condition and determine appropriate risk-based actions prior to endorsement. This update reduces costly and unnecessary delays and will improve the bandwidth of home property inspectors that are often overwhelmed following a natural disaster. Mortgagees remain responsible for ensuring a subject property is eligible for FHA insurance.

FHA strongly believes that the removal of these requirements will strengthen the housing market, reduce unnecessary regulations, increase America’s affordable housing supply, reduce financing costs, and save taxpayer dollars by creating a more efficient FHA lending process.

The provisions of these MLs are effective immediately and will be incorporated into a future version of the FHA’s Single Family Housing Policy Handbook 4000.1.

Mortgagees and other interested parties are encouraged to review these MLs and contact the FHA Resource Center (referenced below) with any questions.

For more information, read today’s press release.

FHA INFO 2025-29 - FHA Seeks Public Input to Better Understand the Implications of Buy Now, Pay Later Lending on Housing Affordability and Stability

June 24, 2025 - Today, the Federal Housing Administration (FHA) published a Request for Information Regarding Buy Now Pay Later Unsecured Debt (Docket No. FR-6547-N01) in the Federal Register.

FHA is committed to its goal of modernizing the way it does business, promoting responsible and sustainable homeownership, and providing sound lending practices to achieve long-term economic stability and a healthy housing market. Consistent with these goals, FHA is looking to its business partners to better understand how the increased prevalence of Buy Now, Pay Later (BNPL) consumer loans may impact the industry’s ability to fully evaluate borrowers’ overall financial profiles and their capacity for long-term homeownership.

The Request for Information (RFI) seeks input to better understand how BNPL obligations may affect lenders’ ability to accurately assess risk and the impact of BNPL lending on housing affordability, which will inform whether policy changes are needed to preserve sound underwriting standards.

FHA welcomes all comments relevant to BNPL loans and their impact on housing stability; however, we are particularly interested in receiving input on the following topics referenced in the RFI:

BNPL use and FHA borrower risk profiles;
BNPL impact on financial health and housing stability;
Visibility in mortgage underwriting;
Eligibility for FHA programs;
Data and research needs; and
FHA policy recommendations.

Interested stakeholders are encouraged to review and provide comments following the methods outlined in the RFI through August 25, 2025.

Refer to the RFI for additional information and details.

FHA INFO 2025-28 - FHA Further Modernizes Default Servicing by Streamlining Engagement with Borrowers in Default and Clarifying Requirements for Future Loss Mitigation

June 3, 2025 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2025-14, Updates to Modernization of Engagement with Borrowers in Default and Loss Mitigation. This ML revises and streamlines policy established in ML 2024-24, Modernization of Engagement with Borrowers in Default, published on December 4, 2024, and provides clarifications to ML 2025-12,Tightening and Expediting Implementation of the New Permanent Loss Mitigation Options, published on April 15, 2025.

With the implementation of the provisions in ML 2025-14, FHA is further aligning its borrower engagement policies with the Trump Administration’s goals of reducing unnecessary regulatory and financial burdens on the industry and fostering long-term economic stability and viability for all Americans. These targeted policy updates expand the options available for mortgagees to reasonably engage with borrowers in default and are designed to help them achieve significant savings when compared to the considerable operational costs of fully implementing ML 2024-24 and ML 2025-12.

Today’s ML 2025-14:

Updates the requirements for a reasonable effort to arrange an interview with borrowers in default;
Removes unnecessarily burdensome requirements associated with the interview with borrowers in default;
Clarifies the transition to the new home retention options for borrowers who are currently required to complete a trial payment plan (TPP);
Updates the requirement for borrowers in imminent default to complete a four-month TPP; and
Updates the disaster forbearance requirements.

See ML 2025-14 for the full scope of the changes. The provisions in Attachment 1 of this ML may be implemented immediately but must be implemented no later than July 1, 2025. The provisions in Attachment 2 must be implemented on October 1, 2025.

Additionally, the updated Single Family Default Monitoring System (SFDMS) Reporting Codes and Reporting Elements is available on the supplemental documents webpage

All updates will be incorporated into a future version of the Single Family Housing Policy Handbook 4000.1

May 2025

FHA INFO 2025-24 - FHA Single Family Housing Deactivates Nearly 600 Mortgagee Letters to Improve Clarity for Business Partners

May 13, 2025 - The Federal Housing Administration’s (FHA) Office of Single Family Housing (OSFH) is announcing that it has officially archived nearly 600 policy documents that are no longer active, and whose web location and availability have caused confusion and challenges for lenders and others trying to obtain accurate FHA Single Family policy information. This effort supports the Trump Administration’s goal of increasing government efficiency.

This streamlining effort follows a recently completed review of Single Family policy artifacts posted on HUD’s Client Information Policy System (HUDCLIPS) webpages. Some Mortgagee Letters (MLs) - including several dating back to 1978 - were still listed in the Single Family online active policy directory. These MLs were expired and/or superseded by the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1) or other policy documents but not moved to the archives for various reasons.

With that review completed, those MLs have been archived in the inactive or superseded MLs webpages on HUDCLIPS.

Today’s artificial intelligence (AI) tools are more efficient at locating and extracting information from vast sources of web content, including information from HUD’s active ML policy directory and its Handbook 4000.1. This streamlining effort will help improve the accuracy of information received from manual and AI-generated web searches about FHA Single Family policy, programs, and technology modernization efforts.

FHA INFO 2025-23 - FHA Implements Mandatory Phishing Resistant Multi-Factor Authentication

May 1, 2025 - The Federal Housing Administration (FHA) has implemented a new phishing-resistant multi-factor authentication (MFA) for its FHA Connection (FHAC) system. Users must implement the phishing-resistant MFA before July 28, 2025, to be able to continue accessing FHAC.

The phishing-resistant MFA is available now to all FHAC users and becomes mandatory beginning July 28, 2025. It is recommended that users set up and begin using this enhanced security feature as soon as possible. Users who do not implement this new security feature by July 28th will not be able to access FHAC. This requirement does not impact users who connect to FHAC through the Business-to-Government interface.

If you have questions about FHA’s new FHAC phishing-resistant MFA, contact the FHA Resource Center for more information.

Instructions for Phishing-Resistant MFA OKTA FASTPASS and FID02 Installation

I - STEPS FOR OKTA FASTPASS INSTALLATION (Recommended):

Download OKTA Verify to your workstation. Several options are below:
- The installation routine for Windows can be found at: https://apps.hud.gov/pub/chums/OktaVerifySetup-5.1.3.0-4b0cd42.exe
- The installation routine for MAC OS can be found in the MAC App Store.
- The installation routine for iOS can be found in the Apple App Store.
- The installation routine for Android can be found in Google Play.
Run the installer, select the checkbox to agree to the License terms and conditions and then click the Install button.
Once the installation is complete, click the Finish button.
From the Windows Start menu, open OKTA Verify.
Click Get Started.
Select Next at "How it works" screen.
In New Account, enter “production-icam-hud.okta.com” and choose Next.
Log into OKTA with your user ID, password, and code. Set OKTA Fast Pass as your default in the new OKTA Verify browser.

You are now set up with OKTA Fast Pass. Next, take the following steps:

Log into FHA Connection.
Sign in using OKTA FastPass.
OKTA Verify will ask you if you are trying to sign in.
Select "Yes, it's me".
You have now successfully entered FHA Connection using Phishing Resistant MFA (OKTA FastPass).

II - STEPS FOR FIDO2 AUTHENTICATION FACTOR INSTALLATION WITHIN THE OKTA PORTAL (Requires Windows Hello or MAC/Linux equivalent):

Go to the FHA Connection home page (https://entp.hud.gov/clas/index.cfm) and click OKTA Setup.
Log into OKTA using the same user ID/Password/Factor used when logging into FHA Connection.
Click on your name at the top left corner of the screen and then select “Settings” (located on right side of the screen).
Once in Settings select Set Up for “Security Key or Biometric Authenticator”.
Following Set Up selection you will be prompted to log into FHA Connection.
Once you log in, you will be prompted to enter your FIDO2 PIN. This will have been established when you set up FIDO2 on your workstation.
You have now successfully entered FHA Connection using Phishing Resistant MFA (FIDO2).

April 2025

FHA INFO 2025-22 - FHA Expands Access to Foreclosed Property Sales to All Buyers

April 28, 2025 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2025-13, Updates to Claims without Conveyance of Title (CWCOT) Post-Foreclosure Sales Period and HUD Real Estate-Owned Properties (REO) Exclusive Listing Period. This ML rescinds policies established in MLs 2022-01 and 2022-08, dated January 13, 2022, and May 5, 2022, respectively, which were later incorporated into FHA’s Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1). Specifically, FHA is:

Removing the exclusive 30-day sales period for owner-occupants, HUD-approved nonprofits, and government entities as part of the CWCOT post-foreclosure sale process; and
Reverting the exclusive listing period on the HUD HomeStore website for REO properties from 30 days to the previous exclusive listing period of 15 days for owner-occupants, HUD-approved nonprofits, and government entities.

Removing these requirements aligns with the Trump Administration’s goals of reducing unnecessary burdens and saving taxpayer funds. FHA’s evaluation of these policies has revealed the efforts were generally not successful in meeting their intended goals. Instead, they have delayed sales of foreclosed properties, increased the deterioration of these properties leading to lower sales prices, and increased costs for the Department of Housing and Urban Development (HUD).

Additionally, the Single Family Default Monitoring System (SFDMS) Reporting Codes and Reporting Elements was updated and is available on the supplemental documents webpage.

FHA systems will be updated concurrently with the effective date of the ML.

These provisions will also be incorporated into a future version of Handbook 4000.1.

Mortgagees and other interested parties are encouraged to review ML 2025-13 and contact the FHA Resource Center with any questions.

FHA INFO 2025-21 - FHA Ends the Biden-era COVID-19 Loss Mitigation Waterfall

April 15, 2025 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2025-12, Tightening and Expediting Implementation of the New Permanent Loss Mitigation Options, which modifies and replaces certain provisions in ML 2025-06, Updates to Servicing Loss Mitigation, and Claims, published January 16, 2025, and provides revised and updated loss mitigation guidance.

Through ML 2025-12, the Trump Administration is definitively announcing the end of the relaxed COVID-19 era loss mitigation waterfall administered in FHA’s Single Family Housing program. Additionally, the Administration is announcing that it will continue its review of the entire FHA permanent loss mitigation waterfall to ensure the policy protects taxpayers while mitigating financial risks to the Mutual Mortgage Insurance Fund (MMIF).

The Department of Housing and Urban Development (HUD) will be conducting an overall evaluation of the Payment Supplement tool as well - including an assessment of its performance and function - to determine if it should remain a part of HUD’s loss mitigation program.

Many of the emergency loss mitigation policies implemented by FHA at the onset of the COVID-19 National Emergency - which were intended to be temporary - have instead been extended for years and remain in place today.

FHA’s prior failure to definitively sunset the COVID-19 emergency loss mitigation “waterfall” has increased risk in the MMIF, hurt taxpayers, set up many FHA borrowers for failure, and enabled other FHA borrowers to abuse the current process.

To address the elevated taxpayer risk to the MMIF and improve borrower outcomes, the FHA, through today's ML, is limiting borrower eligibility for receipt of any permanent home retention loss mitigation option to once every 24 months. This important safeguard aligns with the FHA-HAMP standard and represents a return to the prudent risk management approach FHA observed prior to the outbreak of COVID-19.

Highlights of ML 2025-12 include:

Permanently sunsetting the COVID-19 Loss Mitigation Options on September 30, 2025;
Moving up the effective date of the new permanent loss mitigation options to October 1, 2025 from February 2, 2026;
Continuing the suspension of FHA-HAMP and sunsetting the program effective September 30, 2025;
Extending the time on the eligibility of a borrower for a subsequent permanent loss mitigation option to once every 24 months, from once every 18 months; and
Canceling the scheduled increases in borrower compensation under FHA’s Pre-foreclosure Sale Program, Deed-in-Lieu of Foreclosure disposition options, and Cash for Keys incentives, maintaining the current amounts.

The Single Family Default Monitoring System (SFDMS) Reporting Codes and Reporting Elements, and the FHA Single Family Housing Claim Filing Technical Guide (Claim Filing Guide) are available on the supplemental documents webpage, with the following effective dates:

the updates to the SFDMS Delinquency/Default Status (DDS) Codes, Delinquency/Default Reason (DDR) Codes, and Occupancy Status Codes will be effective October 1, 2025;
the updates to the SFDMS Default Reporting Elements will be effective February 2, 2026; and
updates to the Claim Filing Guide will be effective October 1, 2025.

FHA systems will be updated concurrently with the effective date of the ML.

Mortgagees and other stakeholders in FHA transactions are encouraged to review today’s ML 2025-12 and contact the FHA Resource Center with questions.

FHA INFO 2025-20 - FHA Further Extends Foreclosure Moratoriums for Borrowers Impacted by Hurricanes Helene and Milton

April 8, 2025 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2025-10, Second Extension of the Foreclosure Moratoriums in Connection with Hurricanes Helene and Milton. This ML further extends the foreclosure moratoriums for areas impacted by Hurricanes Helene and Milton through July 10, 2025.

This second extension provides homeowners with FHA-insured mortgages in Presidentially-Declared Major Disaster Areas (PDMDAs) additional time to access federal, state, or local housing resources; consult with HUD-approved housing counselors; and/or rebuild their homes. FHA believes that further extending the foreclosure moratoriums is warranted due to the devastation caused by Hurricanes Helene and Milton, the extensive property damage sustained, and the reduced capacity for those impacted to access needed resources. Many areas in Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia were deemed PDMDAs because of Hurricanes Helene and Milton.

Borrowers with FHA-insured mortgages located in Hurricanes Helen and Milton PDMDAs should contact their mortgage or loan servicer immediately for assistance.

Borrowers can also obtain additional assistance in the following ways:

Review disaster recovery resources from HUD and other Federal and state agencies available on HUD’s Disaster Resources web page or contact the FHA Resource Center referenced below to learn more about disaster relief options.
Contact a HUD-approved housing counseling agency. These agencies have counselors available to assist those impacted by natural disasters in determining assistance needs and identifying available resources. Homeowners can find a HUD-approved housing counseling agency online or use HUD’s telephone look-up tool by calling (800) 569-4287. There is never a fee for foreclosure prevention counseling.
For borrowers and renters whose homes are destroyed or damaged to an extent that requires reconstruction or complete replacement, contact an FHA-approved lender about FHA’s Section 203(h) program. This program provides 100 percent financing for eligible homeowners to rebuild their home or purchase a new one.
For borrowers seeking to purchase and/or repair a home that has been damaged, contact an FHA-approved lender about FHA's Section 203(k) loan program. This program allows individuals to finance the purchase or refinance of a property, as well as the costs of repair or renovation, through a single mortgage.

The provisions of ML 2025-10 apply to all FHA Title II Single Family forward and Home Equity Conversion Mortgage (HECM) programs.

Mortgagees and other interested parties are encouraged to review ML 2025-10 and contact the FHA Resource Center (referenced below) if they have questions.

FHA INFO 2025-18 - FHA Issues Disaster-Related Policy Waiver for Early Payment Default Quality Control Review Requirements

April 1, 2025 - Today, the Federal Housing Administration (FHA) issued a limited waiver of its policy regarding Early Payment Default (EPD) review requirements found in the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1), Sections V.A.3.a.i.(C) and V.A.3.a.iv.(B)(2). This waiver applies to FHA-insured mortgages located in the Presidentially-Declared Major Disaster Area (PDMDA) for the recent California Wildfires.

FHA policy requires that mortgagees select all EPDs for review each month and perform a quality control review to ensure compliance with FHA Single Family origination and underwriting requirements. FHA is waiving the requirement for mortgagees to conduct certain quality control reviews on EPDs in this disaster area because it believes EPDs on loans closed prior to the disaster could most likely be a result of unforeseen circumstances associated with the disaster, such as loss of employment and/or income, property damage and repairs, forced relocation, and other contributing factors.

The current policy is being waived for FHA-insured mortgages that:

are in the PDMDA for California Wildfires and Straight-Line Winds (DR-4856-CA),
have a mortgage closing date before the Incident Period start date of January 7, 2025, and
become EPDs between February 1, 2025, and July 31, 2025.

Mortgagees must continue to provide borrowers in the affected areas with appropriate FHA Loss Mitigation options, report delinquencies in the Single Family Default Monitoring System (SFDMS), and meet all other servicing and loss mitigation requirements in Section III of Handbook 4000.1.

Mortgagees and other interested parties are encouraged to review the waiver and contact the FHA Resource Center (referenced below) if they have questions.

March 2025

FHA INFO 2025-15 - FHA Rescinds Multiple Appraisal Related Policies

March 19, 2025 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2025-08, Rescinding Multiple Appraisal Policy Related Mortgagee Letters, to immediately rescind the policy guidance published in the following MLs:

ML 2024-16, Extension to the Effective Date of Appraisal Review and Reconsideration of Value (ROV) Updates, dated August 6, 2024;
ML 2024-07, Appraisal Review and Reconsideration of Value, dated May 1, 2024; and
ML 2021-27, Appraisal Fair Housing Compliance and Updated General Appraiser Requirements, dated November 17, 2021.

The provisions of this ML are effective immediately and will be incorporated into a future version of Handbook 4000.1.

Additionally, all other prior supporting communications related to the three rescinded MLs — such as FHA INFOs and training — have been removed from hud.gov.

Stakeholders are encouraged to thoroughly review these revisions and contact the FHA Resource Center with questions.

FHA INFO 2025-12 - FHA Extends Foreclosure Moratorium for Borrowers Impacted by Los Angeles County, California Wildfires

March 6, 2025 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2025-07, Extension of the Foreclosure Moratorium in Connection with Presidentially-Declared Major Disaster Areas in Los Angeles County, California. FHA is extending the automatic foreclosure moratorium that was set to expire on April 8, 2025, by 90 days. The moratorium will now remain in effect through July 7, 2025. The provisions of ML 2025-07 apply to all FHA Title II Single Family forward and Home Equity Conversion Mortgage (HECM) programs.

This extension provides homeowners with FHA-insured mortgages in the Los Angeles County Presidentially-Declared Major Disaster Areas (PDMDAs) additional time to access federal, state, or local housing resources; consult with HUD-certified housing counselors; and/or rebuild their homes. FHA believes this foreclosure moratorium extension is warranted due to the significant economic and property damage across the county. Mortgagees are required to implement this policy immediately.

Borrowers with FHA-insured single family mortgages located in the Los Angeles County PDMDAs should contact their mortgage or loan servicer immediately for assistance.
Borrowers can also obtain additional assistance in the following ways:

Review disaster recovery resources from HUD and other Federal and state agencies available on HUD’s Disaster Resources web page or contact the FHA Resource Center to learn more about disaster relief options.
Contact a HUD-approved housing counseling agency. These agencies have counselors available to assist those impacted by natural disasters in determining assistance needs and identifying available resources. Homeowners can find a HUD- approved housing counseling agency online or use HUD’s telephone look-up tool by calling (800) 569-4287. There is never a fee for foreclosure prevention counseling.
For borrowers whose homes are destroyed or damaged to an extent that requires reconstruction or complete replacement, contact an FHA-approved lender about FHA’s Section 203(h) program. This program provides 100 percent financing for eligible homeowners to rebuild their home or purchase a new one.
For borrowers seeking to purchase and/or repair a home that has been damaged, contact an FHA-approved lender about FHA's Section 203(k) loan program. This program allows individuals to finance the purchase or refinance of a house, as well as the costs of repair or renovation, through a single mortgage.

Mortgagees and other interested parties are encouraged to review ML 2025-07 and contact the FHA Resource Center with questions.

For more information, read today's press release.

February 2025

FHA INFO 2025-10 - FHA Issues Waivers of its New Construction Flood Elevation Requirements Amended in its Minimum Property Standards

February 21, 2025 - Consistent with President Trump’s January 20, 2025, Executive Order: Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis, which includes pursuing appropriate actions to lower the cost of housing and expand the housing supply, today the Federal Housing Administration (FHA) issued a temporary partial regulatory waiver and related Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1) waiver to its minimum property standards (MPS) requirements. Without this partial waiver, the new MPS required elevation standard would have limited the land available for development and increased the cost of construction for FHA-insured single family properties, thereby contributing to the insufficient supply of new construction housing and rising home prices.

Specifically, FHA program participants should note:

The partial regulatory waiver is limited to HUD MPS guidance at 24 CFR § 200.926d(c)(4), Drainage and flood hazard exposure, which addresses new construction flood elevation requirements for residential structures under HUD’s mortgage insurance programs; and
The Handbook 4000.1 wavier applies to the eligibility criteria for New Construction in Sections II.A.1.b.iv(A)(1)(b) and II.B.2.b.iii(A)(4)(b).

Interested stakeholders should review these waivers and contact the FHA Resource Center with questions.

January 2025

FHA INFO 2025-09 - Federal Housing Administration Single Family Programs Remain Operational

January 28, 2025 - The U.S. Department of Housing and Urban Development (HUD) has confirmed with the Office of Management and Budget (OMB) that all Federal Housing Administration (FHA) Single Family Title I and Title II mortgage insurance programs remain operational and are not subject to the pause in federal grants and loans outlined in OMB’s memo to federal agencies today.

FHA INFO 2025-08 - FHA Announces Updated Loss Mitigation Options to Assist Homeowners at Risk of Foreclosure Keep Their Homes

January 16, 2025 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2025-06, Updates to Servicing, Loss Mitigation, and Claims, and Appendix 4.0 of its Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1). FHA is also updating its Single Family Default Monitoring System (SFDMS) Reporting Codes and Reporting Data Elements and Claim Filing Technical Guide supplemental documents.

The revisions announced today include updates to FHA’s permanent loss mitigation options based on learnings from its temporary COVID-19 policies and feedback received on the draft policies posted on the Single Family Housing Drafting Table and announced via FHA INFO 2024-81, dated November 25, 2024.

Today’s ML also extends existing COVID-19 Recovery Options to February 1, 2026, giving stakeholders time to implement the new loss mitigation, claims, and reporting requirements.

The provisions in this ML include, but are not limited to:

Updates FHA’s repayment plan and forbearance policies;
Changes to FHA’s Home Retention Options:
- For borrowers who can resume their previous monthly payments:
  - Mortgagees would offer a standalone partial claim or a 30-year standalone loan modification for borrowers who can receive a payment reduction;
- For borrowers who cannot afford their existing monthly payments:
  - Mortgagees would continue to target a 25 percent reduction in the monthly principal and interest (P&I) payment by evaluating the borrower for home retention options in the following order:
    - 30- or 40-year standalone loan modification;
    - 30- or 40-year combination loan modification and partial claim; or
    - If the borrower cannot obtain at least 15 percent P&I reduction from a modification, Payment Supplement, which provides a temporary three-year reduction in monthly payments.
  - Revises FHA’s loan modification for unresponsive borrowers (the Outside of the Waterfall Loan Modification (OWL));
  - Updates the allowable loan modification interest rate pricing;
  - Updates FHA’s Presidentially-Declared Major Disaster Area policies; and
  - Adds guardrails to mitigate the risk of redefault and ensure that borrowers receive the most appropriate loss mitigation option, including:
    - Requiring that the borrower has made at least four loan payments;
    - Borrower attesting that the home retention option is affordable;
    - Borrower successfully completing a three-month trial payment plan (TPP) before receiving a home retention option;
    - Providing one additional retention attempt for borrowers who attested they could resume their previous monthly payment or received an OWL and failed a TPP if the option reduces their monthly payments from the failed TPP; and
    - Limiting borrowers to one executed home retention option in an 18-month period.
Changes to FHA’s Home Disposition Options:
- Streamlines Pre-foreclosure Sale and Deed-In-Lieu requirements;
- Increases monetary incentives for borrowers to avoid foreclosure through completing a pre-foreclosure sale or deed-in-lieu and, post-foreclosure, for occupants to avoid an eviction.
Updates to Appendix 4.0, which provides mortgagees with calculations for the home retention options.
Updates and consolidates SFDMS reporting.
Updates the claims requirements to match the new loss mitigation options.

The provisions of this ML are effective February 2, 2026. These policy updates will be incorporated into a future version on the Handbook 4000.1. Mortgagees and other stakeholders interested in FHA policies are encouraged to thoroughly review the Servicing and Loss Mitigation, and Claims and Disposition sections, Appendix 4.0 of Handbook 4000.1 and the SFDMS Reporting Codes and Claim Filing Technical Guide supplemental documents and forward any questions to the FHA Resource Center.

The draft policy posted on the Single Family Drafting Table originally included the addition of the Equity Saver Sale (ESS). After careful consideration of feedback from stakeholders, the ESS is not included in this final ML. FHA believes the ESS would be a valuable tool as it is intended to provide borrowers with a marketing period prior to foreclosure to complete a voluntary sale and retain net equity proceeds. FHA is particularly interested in receiving feedback on this topic for future consideration. Interested stakeholders are encouraged to thoroughly review the draft ESS and provide their feedback through March 17, 2025, using the feedback instructions posted on the Drafting Table. FHA will carefully consider all feedback received before publishing a final ML.

If FHA’s systems development will be completed in advance of February 2, 2026, FHA may issue a new ML to announce that mortgagees may elect to implement the provisions in this ML prior to February 2, 2026.

For more information, read today’s press release.

FHA INFO 2025-07 - Reminder Guidance for FHA-Approved Mortgagees Regarding Presidentially Declared Major Disaster Areas

January 15, 2025 - In the wake of the devastation caused by the California wildfires, the Federal Housing Administration (FHA) reminds mortgagees about its guidance for servicing and/or originating FHA-insured forward mortgages and Home Equity Conversion Mortgages (HECM) in locations within the U.S. and its territories where the President has declared a major disaster under the Stafford Act. This declaration is made when natural disasters or other events are of such severity that it is beyond the combined capabilities of state and local governments to respond.

This guidance serves as a reminder that applies to all Presidentially-Declared Major Disaster Areas (PDMDAs), which can be found in the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1), unless communicated otherwise through waivers or mortgagee letters.

Loan Servicing and Loss Mitigation

Forward Mortgages

FHA-insured forward mortgages secured by properties in PDMDAs are subject to a 90-day foreclosure moratorium following the disaster declaration.
The mortgagee may offer forbearance relief to borrowers with a mortgaged property or place of employment located within a PDMDA as follows:
- Informal forbearance for borrowers in PDMDAs. The mortgagee may consider borrowers in PDMDAs for an informal forbearance and may offer additional informal forbearance periods if the foreclosure moratorium is extended, as mentioned below.
- Formal forbearance for borrowers in PDMDAs. The mortgagee may consider formal forbearances for borrowers in PDMDAs while they are pursuing home repairs and/or resolving verifiable financial difficulties related to the disaster, provided that:
  - The forbearance period does not exceed the estimated time needed to complete the home repairs; and
  - The total accumulated mortgage arrearages during the forbearance period do not exceed the equivalent of 12 months of principal, interest, taxes, and insurance (PITI).
For any buildings in a PDMDA that are substantially damaged, mortgagees must follow the guidance in Handbook 4000.1 Section III.A.2.n.iii, Monitoring of Repairs to Substantially Damaged Homes.

Mortgagees are encouraged to review the servicing guidance in Section III.A.2.n of Handbook 4000.1 as it relates to servicing mortgages in PDMDAs.

Because of the extensive destruction in connection with the California wildfires and disruption to modes of communication, mortgagees may offer and provide the forbearance unless the borrower affirmatively declines the offer.

Home Equity Conversion Mortgages

In PDMDAs, FHA provides HECM mortgagees an automatic 90-day extension from the date of the PDMDA foreclosure moratorium expiration date to commence or recommence a foreclosure action.
HECMs that become due and payable for reasons other than the death of the last surviving borrower and eligible non-borrowing spouse are subject to a 90-day extension of HECM foreclosure timelines.

Mortgagees are encouraged to review the servicing guidance outlined in Handbook 4000.1, Section III.B.3.a, relating to HECMs in PDMDAs.

Mortgage Origination

Inspection and repair escrow requirements for mortgages pending closing or endorsement:
- All properties with pending mortgages or endorsements in areas under a PDMDA designated for individual assistance must have a damage inspection report that identifies and quantifies any dwelling damage.
- The damage inspection report must be completed by an FHA Roster Appraiser even if the inspection shows no damage to the property, and the report must be dated after the Incident Period (as defined by the Federal Emergency Management Association) or 14 days from the incident period start date, whichever is earlier.
- If the effective date of the appraisal is on or after the date required above for an inspection, a separate damage inspection report is not necessary.
- All damages, regardless of amount, must be repaired by licensed contractors or per local jurisdictional requirements, and the property must be restored to pre-loss condition with appropriate and applicable documentation.

Preparing for longer-term recovery

In preparation for assisting homeowners with longer-term recovery efforts, mortgagees should also review the following:

Guidance for FHA’s 203(h) Mortgage Insurance for Disaster Victims in Section II.A.8.b of Handbook 4000.1. The 203(h) program provides mortgage insurance on mortgages used to finance the rehabilitation or reconstruction of an existing home or the purchase of another one for victims who have lost their homes due to a major disaster in a PDMDA.
Guidance for FHA’s 203(k) Rehabilitation Mortgage Insurance Program in Section II.A.8.a of Handbook 4000.1. The 203(k) program provides mortgage insurance for financing or refinancing of a home, including the cost of repairs or renovation – structural and non-structural.

Mortgagees can obtain more information about FHA’s policies - as well as specific PDMDA related policies - by contacting the FHA Resource Center.

Additional disaster recovery resources from HUD and other Federal and state agencies are available on HUD’s Disaster Resources web page.

FHA INFO 2025-06 - FHA Updates and Streamlines its Nonprofit Approval and Recertification Requirements to Help Expand Program Participation

January 13, 2025 - Today, the Federal Housing Administration (FHA) announces the publication of Mortgagee Letter (ML) 2025-05, Updated Nonprofit Approval and Recertification Procedures. This ML provides updated and revised guidance for nonprofit organizations seeking approval to participate in FHA’s nonprofit programs.

FHA remains committed to extending affordable homeownership opportunities to its core constituency of first-time and low-to-moderate-income homebuyers, including those in underserved communities. The updates in this ML are designed to increase nonprofit organizations’ participation in FHA’s nonprofit programs by expanding the relevant experience requirements and simplifying the application and recertification requirements for nonprofits seeking approval and placement on the FHA Nonprofit Roster. Nonprofits must be approved and placed on the Roster to participate in FHA nonprofit programs that leverage their unique expertise to offer affordable homeownership opportunities for low- and moderate-income individuals and families.

Specifically, this ML:

expands the relevant experience requirement to potentially qualify more eligible nonprofits;
streamlines the recertification process so nonprofits are not required to submit a complete application for recertification. Only information that has changed during the approval period is required;
revises the calculation for the Net Development Costs (NDC);
updates requirements to allow nonprofits to submit one narrative describing their affordable housing program plan (AHPP) – instead on submitting an AHPP for each individual program they are applying for; and
offers nonprofits the use of optional model documents to submit information and streamline recertification through a checklist.

New flexibility in FHA’s requirements for approval and recertification of nonprofits will make it easier for these organizations to become eligible to participate in the following three FHA nonprofit programs:

Secondary Financing: allows nonprofits and government entities to provide secondary financing assistance to homebuyers using FHA insurance on a first mortgage when the downpayment assistance is secured with a second mortgage or lien.
FHA Mortgagor: allows nonprofits and government entities to be eligible for certain FHA-insured mortgage programs under the same provisions as owner occupant borrowers.
HUD Homes: allows nonprofits and government entities to purchase HUD-owned homes listed on the HUD HomeStore website at a discount and during the exclusive listing period reserved for owner-occupant, non-profit, and government entity purchasers.

This guidance may be implemented immediately but must be implemented no later than July 14, 2025.

All updates in this ML will be incorporated into a forthcoming update of the Single Family Housing Policy Handbook 4000.1.

Resources

New model documents are available on the Single Family Model Documents web page.
Nonprofit Organizations and Governmental Entities webpages will be updated concurrently with the effective date of the ML.
FHA subject matter experts will host a stakeholder briefing webinar soon. Details will be communicated in a future FHA INFO.

• • •

HUD-approved and prospective non-profit organizations and other interested parties are encouraged to thoroughly review ML 2025-05 and contact the FHA Resource Center with questions.

FHA INFO 2025-05 - FHA Announces New Policy that Provides Greater Flexibility for Borrowers Using Income Received from Individuals Renting Space Inside Their Homes

January 13, 2025 - Today, the Federal Housing Administration (FHA) announces the publication of Mortgagee Letter (ML) 2025-04, Revisions to Policies for Rental Income from Boarders of the Subject Property and a stakeholder briefing webinar. This ML takes into consideration stakeholder feedback received on the draft ML announced in FHA INFO 2024-79, dated November 20, 2024.

The provisions announced in this ML create greater flexibilities for borrowers using income received from individuals who rent space in borrowers’ homes - referred to as boarders in Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1) - to qualify for an FHA insured mortgage. These new flexibilities include revisions to the required underwriting standards for documenting and calculating this type of income.

FHA remains committed to extending affordable housing opportunities to its core constituency of first-time and low-to-moderate-income homebuyers, including those in underserved communities. In doing so, it recognizes that rental income received from individuals renting space in borrowers’ homes is a stable and viable source of income that increases housing affordability and allows borrowers to better manage housing costs.

This new underwriting guidance:

Expands the types of acceptable income verification documentation for individuals renting space inside the home to include bank statements, canceled checks, and/or deposit slips showing rental payments received;
Establishes that rental income from individuals renting space inside the subject property is permitted whether the borrower is currently a renter or the homeowner;
Reduces the acceptable rental income history from two years to 12 months from individuals renting space inside the borrower’s home;
Allows borrowers with a 12-month rental history to qualify for an FHA-insured mortgage using income from renters living in the home, provided the income has been received for at least nine of the most recent 12 months, is currently being received, and is averaged over a 12-month period; and
Establishes that rental income from individuals renting space inside the home that is used to qualify borrowers for an FHA-insured mortgage cannot exceed 30 percent of their total monthly effective income.

The provisions of this ML may be implemented immediately but must be implemented for FHA case numbers assigned on or after March 14, 2025.and will be incorporated into a future version of Handbook 4000.1.

To further support mortgagees, FHA will host a stakeholder briefing (see details below). A Frequently Asked Questions (FAQ) document that compiles questions received through the stakeholder briefing and FHA Resource Center will be made available on hud.gov and announced in a future FHA INFO.

Mortgagees and other interested parties are encouraged to thoroughly review ML 2025-04 and contact the FHA Resource Center with questions.

Stakeholder Briefing

FHA subject matter experts will host a stakeholder briefing for mortgagees and other interested parties regarding the recently announced, ML 2025-04, Revisions to Policies for Rental Income from Boarders of the Subject Property. Details include:

Title: Revisions to Policies for Rental Income from Individuals Renting Space Inside the Borrower’s Home
Date: Wednesday, January 29, 2025
Time: 2:00 PM–3:30 PM (Eastern)
Target Audience: Underwriters, loan officers, processors, appraisers, quality control, and other industry professionals.
Register for the live webinar.

Registrants are invited to pre-submit questions to sffeedback@hud.gov with the subject line: Borrowers Using Income from Individuals Renting Space Inside The Borrower’s Home. The deadline to submit questions is Wednesday, January 22, 2025.

For more information, read today’s press release.

FHA INFO 2025-04 - FHA Publishes Updates to Single Family Housing Policy Handbook 4000.1

January 10, 2025 - Today, the Federal Housing Administration (FHA) published updates to the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1). This update includes minor policy changes, technical edits, and incorporates previously published policy.

Stakeholders are encouraged to thoroughly review and familiarize themselves with the revisions in Handbook 4000.1. See the Handbook 4000.1 Transmittal for a summary, as updates, changes, effective dates, and other pertinent information is reflected and incorporated. For comparison purposes, a separate redline version has also been posted on the Handbook 4000.1 Information web page. The online version of Handbook 4000.1 is being updated and will be available soon.

Handbook 4000.1 is the comprehensive, authoritative source for policy guidance for industry stakeholders, and provides clear policy and procedure requirements for all FHA Single Family Housing programs. FHA’s Office of Single Family Housing produces regular Handbook 4000.1 updates to ensure it remains the complete, single source document for its latest policies, programs, and processes.

If you have questions regarding this update, contact the FHA Resource Center for more information.

FHA INFO 2025-03 - HUD Adopts Industry Standard Loan Application Form for its Title I Loan Programs

January 9, 2025 - Today, the Federal Housing Administration (FHA) published Title I Letter (TIL) TIL-489, Adoption of the Uniform Residential Loan Application (URLA) for Title I Loan Programs. This TIL incorporates stakeholder feedback received on the draft TIL originally posted on the FHA Office of Single Family Housing Drafting Table announced in FHA INFO 2024-78, dated November 18, 2024.

Currently, Title I loans require program-specific loan application forms for each of its two programs: forms HUD-56001 for Title I Property Improvement and HUD-56001-MH for Title I Manufactured Home loans. TIL-489 announces the replacement of both of these forms with the industry standard loan application, Uniform Residential Loan Application (URLA) (Fannie Mae Form 1003/Freddie Mac Form 65), and the new HUD Addendum to the Uniform Residential Loan Application for Title I Loans (form HUD-92900-TI).

By adopting the commonly used industry standard URLA, HUD is simplifying its Title I loan application process. This enables lenders to use existing origination system technology to collect borrower data, which eliminates the financial burden of acquiring multiple software licenses or manually completing a Title I program-specific application form. FHA believes these changes will encourage greater lender participation in its Title I program.

The provisions of this TIL may be implemented immediately but must be implemented for case numbers assigned on or after May 8, 2025. The provisions of this TIL will be incorporated into a future version of Single Family Housing Policy Handbook 4000.1.

Mortgagees and other interested parties are encouraged to review the TIL-489 and contact the FHA Resource Center if they have questions.

FHA INFO 2025-02 - HUD Seeks Further Feedback on Updated Requirements for Partial Claim Recording Timeframes and Payoff

January 9, 2025 - Today, the Federal Housing Administration (FHA) posted an updated draft of its Partial Claim Document Recording and Payoff Statements Mortgagee Letter (ML) on the FHA’s Office of Single Family Housing Drafting Table (Drafting Table) for review and feedback. The payoff statement section in today’s version of the draft ML has been revised based on feedback received since its initial Drafting Table posting originally announced in FHA INFO 2024-64 on September 12, 2024.

FHA’s intent with this draft remains the same: that borrowers, closing agents, attorneys, and title agents are aware of the partial claim subordinate lien amount owed on the mortgage loan, ensuring that the partial claim payoff is provided to the party requesting the payoff statement for the FHA-insured first mortgage. FHA believes this will help minimize losses to its Mutual Mortgage Insurance Fund (MMIF) and prevent potential challenges related to the subordinate lien for those refinancing their mortgage or selling their home. Additionally, this draft policy proposes to partially alleviate an operational burden on mortgagees by increasing the time allowed to record a partial claim.

This draft ML also proposes to:

Extend the time allowed for mortgagees to record partial claim security instruments from five to 15 days from:
- the date of receipt from the borrower; or
- bankruptcy court approval, if required; or
- where HUD execution is required, receipt from HUD.
Establish a new procedure when the mortgagee receives a payoff request for an FHA insured mortgage and there are outstanding partial claims or payment supplements associated with the mortgage.

Interested stakeholders are encouraged to thoroughly review this draft ML and provide their feedback through March 10, 2025, using the feedback instructions posted on the Drafting Table. FHA will carefully consider all feedback received before publishing a final ML.

As a reminder, this draft is not official departmental policy and cannot be used in connection with any FHA-insured mortgage until finalized. FHA’s existing policies remain in effect until amended.

FHA INFO 2025-01 - FHA Defect Taxonomy Updated to Include Servicing Loan Reviews

January 7, 2025 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2025-01, Federal Housing Administration (FHA) Defect Taxonomy Updates for Servicing Loan Reviews. This ML updates the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1), Appendix 8.0 – FHA Defect Taxonomy (Defect Taxonomy) with revised introductory sections and new content focused on Title II servicing loan reviews.

FHA’s Defect Taxonomy is the agency’s method for identifying loan-level defects and is used to categorize FHA policy violations and corresponding remedies, which are then communicated to mortgagees through the Loan Review System. FHA’s current defect taxonomy includes guidance applicable only to Title II underwriting loan reviews. FHA’s Office of Single Family Housing also conducts servicing loan reviews; however, its method of identifying servicing defects has never been published other than in draft form.

With this ML, FHA is addressing this transparency gap by adding servicing loan reviews and aligning the defect taxonomy with the requirements in Handbook 4000.1, Section III – Servicing and Loss Mitigation.

The updated Defect Taxonomy includes:

Six defect areas covering FHA requirements through the servicing lifecycle;
Severity tier descriptions with common characteristics and distinctions based on the practical impact of non-compliance;
Expanded, servicing-specific remedies aligned with severity tiers for each defect area.
Revised introductory sections that apply to both underwriting and servicing reviews.

The addition of servicing-specific guidance to the Defect Taxonomy will provide greater clarity and transparency into FHA’s servicing loan review process. New introductory language will increase awareness of FHA’s use of indemnifications and other remedies for all review types. Pursuit of such loan-level actions and remedies does not limit FHA’s ability to refer a mortgagee to the Mortgagee Review Board (MRB) or prevent the MRB from initiating its own action where appropriate.

Today’s ML 2025-01 incorporates feedback received on the draft ML that was posted on the Single Family Drafting Table and announced in FHA INFO 2021-92, dated October 28, 2021. A revised version of the draft ML was later posted for stakeholder feedback on July 10, 2024, via FHA INFO 2024-45.

The provisions of this ML are effective for Title II loan reviews as of January 15, 2025, and will be incorporated into a future version of the Handbook 4000.1. 

Mortgagees and other interested parties are encouraged to review ML 2025-01 and contact the FHA Resource Center if they have questions.

December 2024

FHA INFO 2024-90 - FHA Seeks Feedback on the Proposed Establishment of the Optional Reimbursement Claim Alternative Mortgagee Letter

December 19, 2024 - Today, the Federal Housing Administration (FHA) posted the draft, Establishment of the Optional Reimbursement Claim Alternative (ORCA) Mortgagee Letter (ML) on its Single Family Housing Drafting Table (Drafting Table) for review and feedback. If finalized, this policy would allow mortgagees to seek reimbursement for costs associated with their advances for taxes and insurance on defaulted FHA-insured Single Family Title II forward mortgages after the borrower’s escrow has been exhausted but before the final claim payment is made. This draft ORCA policy is intended to support lender liquidity.

Currently, mortgagees incur significant upfront expenses between default and final resolution when advancing tax and insurance payments on defaulted mortgages. Receiving reimbursement of tax and insurance advances earlier in the process may help alleviate some of the financial burden of costs that mortgagees incur while servicing FHA-insured mortgages during the default and foreclosure processes.

Please note that if FHA finalizes this policy, it will take significant time to implement, as FHA will need to update its claims system.

Interested stakeholders are encouraged to thoroughly review the draft ML and provide feedback through March 3, 2025. Instructions for viewing and providing feedback on the draft ML are available on the Drafting Table. FHA will carefully consider all feedback received before publishing a final ML.

As a reminder, this draft ML is not official departmental policy and cannot be used in connection with any FHA-insured mortgage. FHA’s existing policies remain in effect until amended.

FHA INFO 2024-89 - New FHA Catalyst Enhancements Announced Today

December 16, 2024 - As part of its ongoing technology modernization effort, the Federal Housing Administration (FHA) is announcing the following enhancements to its Single Family FHA Catalyst technology, available today.

FHA Catalyst Mortgagee Administrator Role Improvements

FHA has implemented new Mortgagee Administrator functionalities that allow for better management of case binder submissions for pre-endorsement reviews. Details of these revised functionalities can be found on the FHA Catalyst: User Access Management webpage, which includes the updated FHA Catalyst Mortgagee Administrator Role User Guide.

To support FHA Catalyst Mortgagee Administrators, FHA has made available a series of training videos consisting of six “how-to” tutorials for Mortgagee Administrators on the following topics:

The tutorials can be accessed on the FHA Catalyst User Access Management webpage on hud.gov.

FHA Catalyst Servicing Binder Submission Capabilities

The FHA Catalyst: Case Binder Module can now accept servicing binders from FHA-approved servicers when requested by FHA for various servicing oversight and monitoring reviews. This new capability provides a streamlined process for the submission of servicing binders to FHA. Servicers will receive an email notification with instructions when binders are requested.

For more information, review the FHA Catalyst: Case Binder Module User Guide and User Guide Change Overview available on the FHA Catalyst: Case Binder Module webpage.

FHA INFO 2024-88 - FHA Issues Disaster-Related Policy Waiver for Early Payment Default Quality Control Review Requirements

December 12, 2024 - Today, the Federal Housing Administration (FHA) issued a limited waiver of its policy regarding Early Payment Default (EPD) review requirements found in the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1), Sections V.A.3.a.i.(C) and V.A.3.a.iv.(B)(2). This waiver applies to FHA-insured mortgages located in Presidentially-Declared Major Disaster Areas (PDMDAs) affected by Hurricane/Tropical Storm Helene and/or Hurricane Milton.

FHA policy requires that mortgagees select all EPDs for review monthly and perform a quality control review to ensure compliance with FHA Single Family origination and underwriting requirements. Given the possibility of an increase in EPDs in these disaster areas, FHA is waiving the requirement for mortgagees to conduct certain quality control reviews because it believes EPDs on loans closed prior to the disaster are most likely a result of unforeseen circumstances associated with these disasters, such as loss of employment and/or income, property damage and repairs, forced relocation, and other contributing factors.
The current policy is being waived for FHA-insured mortgages that:

are in a PDMDA associated with Hurricane/Tropical Storm Helene and/or Hurricane Milton,
have a mortgage closing date before the start date of the applicable incident period as determined by the Federal Emergency Management Agency (FEMA), and
became an EPD between November 1, 2024, and April 30, 2025.

Mortgagees also must continue to provide borrowers in the affected areas with appropriate FHA Loss Mitigation options, report delinquencies in the Single Family Default Monitoring System (SFDMS), and meet all other servicing and loss mitigation requirements in Section III of Handbook 4000.1.

Mortgagees and other interested parties are encouraged to review the waiver and contact the FHA Resource Center if they have questions.

FHA INFO 2024-87 - FHA Extends its Foreclosure Moratoriums for Borrowers Impacted by Hurricanes Helene and Milton

December 6, 2024 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024-25, Extension of the Foreclosure Moratoriums in Connection with Hurricanes Helene and Milton. The moratoriums will remain in effect through April 11, 2025. Mortgagees are required to implement this policy immediately.

This extension provides homeowners with FHA-insured mortgages in Presidentially Declared Major Disaster Areas (PDMDAs) additional time to access federal, state, or local housing resources; consult with HUD-approved housing counselors; and/or rebuild their homes. FHA believes these foreclosure moratorium extensions are warranted because of the devastation caused by Hurricanes Helene and Milton, the extensive property damage sustained, and the reduced capacity for those impacted to access needed resources. Many areas in Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia are deemed PDMDAs.

Borrowers with FHA-insured mortgages located in Hurricanes Helen and Milton PDMDAs should contact their mortgage or loan servicer immediately for assistance.

Borrowers can also obtain additional assistance in the following ways:

Visit the FHA Disaster Relief site or call the FHA Resource Center at 1-800-304-9320 to learn more about disaster relief options.
Contact a HUD-approved housing counseling agency. These agencies have counselors available to assist those impacted by natural disasters in determining assistance needs and identifying available resources. Homeowners can find a HUD- approved housing counseling agency online or use HUD’s telephone look-up tool by calling (800) 569-4287. There is never a fee for foreclosure prevention counseling.
For borrowers whose homes are destroyed or damaged to an extent that requires reconstruction or complete replacement, contact an FHA-approved lender about FHA’s Section 203(h) program. This program provides 100 percent financing for eligible homeowners to rebuild their home or purchase a new one.
For borrowers seeking to purchase and/or repair a home that has been damaged, contact an FHA-approved lender about FHA's Section 203(k) loan program. This program allows individuals to finance the purchase or refinance of a house, as well as the costs of repair or renovation, through a single mortgage.

The provisions of ML 2024-25 apply to all FHA Title II Single Family forward and Home Equity Conversion Mortgage (HECM) programs.

Mortgagees and other interested parties are encouraged to review ML 2024-25 and contact the FHA Resource Center if they have questions.

Read today’s press release for more information.

FHA INFO 2024-86 - FHA Modernizes Engagement with Borrowers in Default Requirements

December 4, 2024 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2024-24, Modernization of Engagement with Borrowers in Default, which provides guidance for implementing the provisions of the final rule, Modernization of Engagement with Mortgagors in Default (Docket No. FR-6353-F-02), which published in the Federal Register on August 2, 2024.

Specifically, this ML:

updates the requirements for mortgagees to meet with borrowers in default; and
allows mortgagees to satisfy the meeting requirement by giving them the ability to use alternative communication methods to discuss available loss mitigation options with borrowers and to help them keep them in their homes.

This ML also contains alternative interim procedures for engaging borrowers in default. These interim procedures are effective January 1, 2025, through June 30, 2025. These interim procedures give mortgagees the ability to maintain their current operations while working towards implementing the ML’s permanent provisions, which may be implemented immediately but must be implemented no later than July 1, 2025.

The policy updates in this ML will be incorporated into a future version of the Single Family Housing Policy Handbook 4000.1.

Stakeholders with questions about the ML or final rule should contact the FHA Resource Center for more information.

FHA INFO 2024-85 - FHA Announces a Demonstration to Allow Electronic Delivery of Partial Claim Documents

December 3, 2024 - Today, the Federal Housing Administration (FHA) published the notice, Partial Claim Electronic Delivery Alternative Demonstration (Docket No. FR-6474-N-01) in the Federal Register, announcing the Partial Claim Electronic Delivery Alternative Demonstration (the Demonstration).

The Demonstration provides mortgagees who elect to participate the ability to submit digital copies of partial claim promissory notes and subordinate mortgages (PC Documents) to FHA in lieu of original documents. Mortgagees would retain the original documents. Through the Demonstration, FHA intends to reduce the costs and burdens for mortgagees associated with delivering original PC Documents to HUD.

FHA will announce the effective date of the Demonstration in a subsequent Federal Register notice and will publish a Mortgagee Letter with implementation guidance for the Demonstration.

Stakeholders are encouraged to thoroughly review the notice and provide comments, if any, through February 3, 2025, following the methods outlined in the notice.

FHA INFO 2024-84 - FHA Publishes Revised Cyber Incident Reporting Requirements Mortgagee Letter

December 2, 2024 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024-23, Revised Cyber Incident Reporting Requirements. This ML harmonizes FHA’s cyber incident reporting requirements with those of the federal banking agencies.
Effective immediately, FHA-approved mortgagees must notify the Department of Housing and Urban Development (HUD) as soon as possible — but no later than 36 hours — after determining that a reportable cyber incident has occurred via the FHA Resource Center at answers@hud.gov as well as HUD’s Security Operations Center at cirt@hud.gov.

On September 30, 2024, FHA posted a draft of the revised cyber incident ML on its Office of Single Family Housing Drafting Table for stakeholder review and feedback. This final ML has been adopted without changes.
This updated guidance supersedes FHA’s previous guidance in ML 2024-10, dated May 23, 2024, and serves to balance FHA’s need for swift, defensive information while minimizing the operational burden on affected partners. FHA will remain committed to industry harmonization as federal cyber incident reporting standards continue to evolve.

Stakeholders should contact the FHA Resource Center if they have questions.

November 2024

FHA INFO 2024-82 - 2025 Federal Housing Administration Nationwide Forward Mortgage and Home Equity Conversion Mortgage Limits

November 26, 2024 - In this Announcement:

2025 Nationwide Forward Mortgage Limits
2025 Nationwide Home Equity Conversion Mortgage Limits
Additional Information

See below for details.

2025 Nationwide Forward Mortgage Limits

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2024-21, 2025 Nationwide Forward Mortgage Limits, which provides the maximum mortgage limits for FHA-insured Title II forward mortgages for calendar year (CY) 2025.

The FHA national mortgage limits by the number of units, are as follows:

CY 2025 FHA Forward Mortgage Loan Limits for Low- and High-Cost Areas
Property Size	Low Cost Area "Floor"	High Cost Area “Ceiling”¹
One-Unit	$524,225	$1,209,750
Two-Units	$671,200	$1,548,975
Three-Units	$811,275	$1,872,225
Four-Units	$1,008,300	$2,326,875

As stated in the FHA Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1), section II.A.2.a.ii Nationwide Mortgage Limits, FHA calculates forward mortgage limits based on the median house prices in accordance with the National Housing Act and its Single Family forward mortgage limits are set by Metropolitan Statistical Area (MSA) and county. Loan limits in these areas are set and published annually using the county with the highest median price within the MSA.

FHA forward mortgage limits for individual MSAs and counties are available on the FHA Mortgage Limits web page.
Downloadable text files with complete listings of all county loan limits are available on the CHUMS data files web page.
FHA’s list of areas at the “ceiling” and areas with limits between the “floor” and “ceiling” — along with lists that can be sorted by state, county, or Metropolitan Statistical Area (MSA) or by calendar year — on the Maximum Mortgage Limits web page.

The process that permits appeals to change high-cost area loan limits in accordance with Handbook 4000.1 has also been updated. Appeals should now be forwarded to the FHA Resource Center instead of FHA’s Santa Ana Homeownership Center as in previous years. These new loan limits are effective for case numbers assigned on or after January 1, 2025, through December 31, 2025; however, updates to the process to request local increases are effective immediately.

¹Alaska, Hawaii, Guam and the U.S. Virgin Islands are subject to a higher “ceiling.” See Mortgagee Letter 2024-21 for details.

2025 Nationwide Home Equity Conversion Mortgage Limits

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2024-22, 2025 Home Equity Conversion Mortgage (HECM) Limits, which provides the calendar year (CY) 2025 maximum claim amount for FHA-insured traditional HECM, HECM for purchase, and HECM-to-HECM refinances.

The CY 2025 maximum claim amount for FHA-insured HECMs for all areas — including Alaska, Hawaii, Guam, and the U.S. Virgin Islands —will be $1,209,750, which is 150 percent of Federal Home Loan Mortgage Corporation’s (Freddie Mac) national conforming limit of $806,500. This limit is applicable for case numbers assigned on or after January 1, 2025, through December 31, 2025. For additional details, refer to Mortgagee Letter 2024-22.

Additional Information

The updated CY 2025 Title II forward mortgage loan limits and HECM maximum claim amount will be included in a future update to Handbook 4000.1.

Mortgagees and other interested parties are encouraged to thoroughly review MLs 2024-21 and 2024-22 and contact the FHA Resource Center with questions.

Read today’s press release for more information.

FHA INFO 2024-80 - FHA Issues Extension to Compliance Date for Portions of the Modernization of Engagement with Mortgagors in Default Final Rule

November 21, 2024 - Today, the Federal Housing Administration (FHA) published a Federal Register (FR) notice, Modernization of Engagement with Mortgagors in Default: Partial Extension of Compliance Date, [Docket No. FR-6353-N-03], which extends the compliance date for certain provisions in the August 2, 2024, final rule, Modernization of Engagement with Mortgagors in Default [FR-6353-F-02] through July 1, 2025.

The final rule requires mortgagees to conduct meetings with all mortgagors in default, removing two exceptions to the meeting requirement if the mortgagor does not reside in the mortgaged property or if the mortgaged property is not within 200 miles of the mortgagee, its servicer, or a branch office of either. This extension effectively preserves these two exceptions to the meeting requirement until July 1, 2025.

HUD decided to issue today’s extension after careful review and consideration of the feedback received on the draft mortgagee letter (ML), Modernization of Engagement with Borrowers in Default posted on the Single Family Housing Drafting Table on August 14, 2024, concerning the requirement to meet with all mortgagors in default.

Mortgagees will now have an additional six months to rely on the two exceptions to the meeting requirement while they update their technology systems, processes and procedures needed for compliance with the entirety of the rule and with guidance that will be established in a forthcoming mortgagee letter (ML) entitled, Modernization of Engagement with Borrowers in Default. This extension is intended to minimize disruption to mortgagees by enabling them to maintain existing operations while working towards compliance with the new requirements, which will include those in the forthcoming ML.

Mortgagees may elect to comply with the entirety of HUD’s final rule beginning on its effective date of January 1, 2025, or may delay compliance with those certain provisions referenced in the subject FR notice through July 1, 2025.

Stakeholders with questions about the final rule or this extension should contact the FHA Resource Center (below) for more information.

FHA INFO 2024-76 - FHA Issues Final Guidance for Federal Flood Risk Management Standards for New Construction Properties Located in Special Flood Hazard Areas

November 7, 2024 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024-20, Adoption of Federal Flood Risk Management Standard (FFRMS) for Minimum Property Standards (MPS) in Special Flood Hazard Areas (SFHA). This ML updates FHA’s Minimum Property Standards (MPS) for all newly built single-family residential structures - except for manufactured homes - being financed through the FHA Single Family program.

With this ML, FHA is implementing the provisions of the final rule, Floodplain Management and Protection of Wetlands; Minimum Property Standards for Flood Hazard Exposure; Building to the Federal Flood Risk Management Standard, published on April 23, 2024.This final rule revised HUD’s regulations governing floodplain management and the protection of wetlands to implement the FFRMS in accordance with Executive Order 13690, Establishing a Federal Flood Risk Management Standard and a Process for Further Soliciting and Considering Stakeholder Input dated January 30, 2015.

In accordance with the provisions of the final rule, FHA’s MPS are updated to require that the lowest floor in newly constructed dwellings located within the 1-percent-annual-chance (100-year) floodplain be built at least two feet above the base flood elevation as determined by FEMA. This elevation standard would be applicable to FHA-insured mortgages on homes that:

are new construction; and
have a building permit application submission, or their equivalent, dated on or after January 1, 2025.

HUD estimates that elevating new construction dwellings in flood-prone areas to meet the FFRMS could lead to homeowner savings of $56.4 million to $324.3 million over the expected 40-year economic life of the properties. These anticipated savings should result from:

reduced property damage;
avoidance of relocation;
avoidance of temporary housing expenses;
avoidance of lost income due to flooding; and
potentially, lower flood insurance premiums.

Adopting the FFRMS is crucial for improving community resilience to flood exposure and decreasing potential flood damage, while ensuring the safety and soundness of properties secured by FHA-insured financing.

The provisions of this ML take into consideration stakeholder feedback provided on the draft ML posted on the Single Family Housing Drafting Table and announced in FHA INFO 2024-65. Refer to the ML for effective dates. These policy updates will be incorporated into a future version on the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1).

For more information on the FFRMS, access HUD’s FFRMS Final Rule Webinar Series, and review the FFRMS FAQs and the final rule in its entirety or contact the FHA Resource Center.

October 2024

FHA INFO 2024-72 - Reminder Guidance for FHA-Approved Mortgagees Regarding Presidentially Declared Major Disaster Areas

October 21, 2024 - In the wake of the devastation caused by Hurricane/Tropical Storm Helene and Hurricane Milton, the Federal Housing Administration (FHA) reminds mortgagees about its guidance for servicing and/or originating FHA-insured forward mortgages and Home Equity Conversion Mortgages (HECM) in locations within the U.S. and its territories where the President has declared a major disaster under the Stafford Act. This declaration is made when natural disasters or other events are of such severity that it is beyond the combined capabilities of state and local governments to respond.

Loan Servicing and Loss Mitigation

Forward Mortgages
The mortgagee may offer forbearance relief to borrowers with a mortgaged property or place of employment located within a PDMDA as follows:

Informal forbearance for borrowers in PDMDAs. The mortgagee may consider borrowers in PDMDAs for an informal forbearance and may offer additional informal forbearance periods if the foreclosure moratorium is extended, as mentioned below.
Formal forbearance for borrowers in PDMDAs. The mortgagee may consider formal forbearances for borrowers in PDMDAs while they are pursuing home repairs and/or resolving verifiable financial difficulties related to the disaster, provided that:
- The forbearance period does not exceed the estimated time needed to complete the home repairs; and
- The total accumulated mortgage arrearages during the forbearance period do not exceed the equivalent of 12 months of principal, interest, taxes, and insurance (PITI).
FHA-insured forward mortgages secured by properties in PDMDAs are subject to a 90-day foreclosure moratorium following the disaster declaration.
In PDMDAs, FHA provides mortgagees an automatic 90-day extension from the foreclosure moratorium expiration date to commence or recommence a foreclosure action or evaluate the borrower under HUD’s loss mitigation programs.
For any buildings in a PDMDA that are substantially damaged, mortgagees must follow the guidance in Handbook 4000.1 Section III.A.2n.iii, Monitoring of Repairs to Substantially Damaged Homes.

Mortgagees are encouraged to review the servicing guidance in Section III.A.2.n of Handbook 4000.1 as it relates to servicing mortgages in PDMDAs.

Mortgagees are reminded to contact affected borrowers who may require loss mitigation assistance as soon as possible post-disaster. FHA also encourages mortgagees to use any permissible means to contact borrowers to provide them with needed forbearance relief. Because of the extensive destruction in connection with Hurricane Helene and disruption to modes of communication, mortgagees may offer and provide the forbearance unless the borrower affirmatively declines the offer.

Home Equity Conversion Mortgages

HECMs that become due and payable for reasons other than the death of the last surviving borrower and eligible non-borrowing spouse are subject to a 90-day extension of HECM foreclosure timelines.
In PDMDAs, FHA provides HECM mortgagees an automatic 90-day extension from the date of the PDMDA foreclosure moratorium expiration date to commence or recommence a foreclosure action.

Mortgagees are encouraged to review the servicing guidance outlined in Handbook 4000.1, Section III.B.3.a, relating to HECMs in PDMDAs.

Mortgage Origination

Inspection and repair escrow requirements for mortgages pending closing or endorsement

All properties with pending mortgages or endorsements in areas under a PDMDA designated for individual assistance must have a damage inspection report that identifies and quantifies any dwelling damage.
The damage inspection report must be completed by an FHA Roster Appraiser even if the inspection shows no damage to the property, and the report must be dated after the Incident Period (as defined by the Federal Emergency Management Association) or 14 days from the incident period start date, whichever is earlier.
If the effective date of the appraisal is on or after the date required above for an inspection, a separate damage inspection report is not necessary.
All damages, regardless of amount, must be repaired by licensed contractors or per local jurisdictional requirements, and the property must be restored to pre-loss condition with appropriate and applicable documentation.

Preparing for longer-term recovery

In preparation for assisting homeowners with longer-term recovery efforts, mortgagees should also review the following:

Guidance for FHA’s 203(h) Mortgage Insurance for Disaster Victims in Section II.A.8.b of Handbook 4000.1. The 203(h) program provides mortgage insurance on mortgages used to finance the rehabilitation or reconstruction of an existing home or the purchase of another one for victims who have lost their homes due to a major disaster in a PDMDA.
Guidance for FHA’s 203(k) Rehabilitation Mortgage Insurance Program in Section II.A.8.a of Handbook 4000.1. The 203(k) program provides mortgage insurance for financing or refinancing of a home, including the cost of repairs or renovation – structural and non-structural.

Mortgagees can obtain more information about FHA’s policies — as well as specific PDMDA-related policies — by contacting the FHA Resource Center.

Additional disaster recovery resources from HUD and other Federal and state agencies are available on HUD’s Disaster Resources web page.

FHA INFO 2024-71 - Temporary Policy Waivers Related to Hurricane/Tropical Storm Helene and Hurricane Milton

October 21, 2024 - In this Announcement:

203(k) Limited Temporary Waiver Hurricane Helene
Temporary Waiver of 14-day Damage Inspection Reports in Overlapping Presidentially-declared Major Disaster Areas

See below for details:

203(k) Limited Temporary Waiver Hurricane/Tropical Storm Helene and Hurricane Milton

Today, the Federal Housing Administration (FHA) posted a temporary waiver on hud.gov of its 203(k) Rehabilitation Mortgage Insurance Program requirement that states, when a repair is considered "major,” it becomes ineligible to be financed as part of the 203(k) Limited program, if the repairs prevent the borrower from occupying the property for more than 15 days.

As result of the Presidentially-declared Major Disaster Areas (PDMDAs) related to Hurricane/Tropical Storm Helene and Hurricane Milton, many properties were severely impacted or destroyed and are now in serious need of rehabilitation and/or repair. FHA believes a temporary waiver of its definition of "major repair" related to the 15 days (or 30 days after November 4, 2024) needed for repair completion is crucial to ensure homeowners in this PDMDA can rebuild their properties.

Today’s temporary waiver applies to FHA-insured Limited 203(k) mortgages closed on or before August 31, 2025. While this temporary policy waives the 15-day occupancy requirement for this PDMDA, the requirement that at least one borrower resides in the property within 60 days remains the same. For more information, view the published policy in the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1) II.A.1.b.iii (A) for Principal Residences.

This temporary policy waiver is effective through August 31, 2025. The extended waiver period accounts for any construction delays possibly due to the continued hurricane season as well as the upcoming winter season.

Temporary Waiver of 14-day Damage Inspection Report Requirement in Overlapping Presidentially-declared Major Disaster Areas

Today, the Federal Housing Administration (FHA) issued a temporary waiver of its policy requiring damage inspection reports for properties in Presidentially-declared Major Disaster Areas (PDMDAs) that must be completed after the closure date of an incident period as determined by the Federal Emergency Management Agency (FEMA), or at least 14-days from the start of the incident period, whichever is earlier. This temporary waiver of a second 14-day incident period applies specifically to inspection reports associated with the Hurricane Milton PDMDA (DR-4834-FL), as declared on October 11, 2024.

Due to Hurricane/Tropical Storm Helene and Hurricane Milton, both of which severely impacted similar regions within a 14-day period, FHA’s current policy of requiring a separate 14-day waiting period for damage inspections and reports following each event has created the potential for extensive repair/rehabilitation delays for homebuyers and sellers.

FHA believes that the presence of FEMA in areas already included in the multiple Hurricane/Tropical Storm Helene PDMDAs provides enough stability and risk mitigation to eliminate the requirement for a second 14-day waiting period for inspection and damage reports associated with the Hurricane Milton PDMDA (DR-4834-FL). While this policy waves the 14-day waiting period to conduct the damage inspection report, the requirement to conduct a damage inspection report, and other inspection and repair escrow requirements, for all properties with pending mortgages or endorsements in the PDMDAs remain the same.

In summary, this temporary waiver:

applies only to properties located within the overlapping PDMDAs;
waives the 14-day waiting period to conduct the damage inspection report;
does not waive the damage inspection report or inspection and repair escrow requirements;
is not applicable to properties located in areas included in the Florida Hurricane Milton PDMDA (DR-4834-FL), unless the properties were also included in a PDMDA associated with Hurricane/Tropical Storm Helene.

This waiver of Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1) policy — sections II.A.7.c, II.B.6.a.xiii, and II.B.7.c. — is effective immediately.

Mortgagees are encouraged to review both waivers. For questions or additional information, contact the FHA Resource Center.

FHA INFO 2024-69 - Reminder Guidance for FHA-Approved Mortgagees Regarding Presidentially Declared Major Disaster Areas

October 1, 2024 - In the wake of the devastation caused by Hurricane Helene, the Federal Housing Administration (FHA) reminds mortgagees about its guidance for originating and/or servicing FHA-insured forward mortgages and Home Equity Conversion Mortgages (HECM) in locations in the U.S. and its territories where the President has declared a Major Disaster under the Stafford Act. This declaration is made when natural disasters or other events are of such severity that it is beyond the combined capabilities of state and local governments to respond.

The following guidance serves as a reminder that applies to all Presidentially-Declared Major Disaster Areas (PDMDA) which can be found in the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1):

Mortgage Origination

Inspection and Repair Escrow Requirements for Mortgages Pending Closing or Endorsement

All properties with pending mortgages or endorsements in areas under a PDMDA designated for individual assistance must have a damage inspection report that identifies and quantifies any dwelling damage.
The damage inspection report must be completed by an FHA Roster Appraiser even if the inspection shows no damage to the property, and the report must be dated after the Incident Period (as defined by the Federal Emergency Management Association) or 14 Days from the Incident Period start date, whichever is earlier.
If the effective date of the appraisal is on or after the date required above for an inspection, a separate damage inspection report is not necessary.
All damages, regardless of amount, must be repaired by licensed contractors or per local jurisdictional requirements, and the Property must be restored to pre-loss condition with appropriate and applicable documentation.

Loan Servicing and Loss Mitigation

The mortgagee may offer forbearance relief to a borrower with a mortgaged property or place of employment located within a PDMDA as follows:

Informal Forbearance for Borrowers in PDMDAs. The mortgagee may consider borrowers in PDMDAs for an Informal Forbearance and may offer additional Informal Forbearance periods if the foreclosure moratorium is extended, as mentioned below.
Formal Forbearance for Borrowers in PDMDAs. The mortgagee may consider Formal Forbearances for borrowers in PDMDAs while they are pursuing home repairs and/or resolving verifiable financial difficulties related to the disaster, provided that:
- The forbearance period does not exceed the estimated time needed to complete the home repairs; and
- The total accumulated mortgage arrearages during the forbearance period does not exceed the equivalent of 12 months of principal, interest, taxes, and insurance (PITI).
FHA-insured forward mortgages secured by properties in a PDMDA are subject to a 90-day foreclosure moratorium following the disaster declaration.
In PDMDAs, FHA provides mortgagees an automatic 90-day extension from the foreclosure moratorium expiration date to commence or recommence a foreclosure action or evaluate the borrower under HUD’s Loss Mitigation Program.
For any buildings in a PDMDA that are substantially damaged, mortgagees must follow the guidance in Handbook 4000.1 Section III.A.3.c.iii, Monitoring of Repairs to Substantially Damaged Homes.

Mortgagees should review complete servicing guidance in Handbook 4000.1, Sections III.A.2, relating to the servicing of mortgages in PDMDAs.

Mortgagees are reminded to contact affected borrowers who may require loss mitigation assistance as soon as possible post-disaster and FHA encourages mortgagees to use any permissible means to contact borrowers to provide them with needed forbearance relief. Because of the extensive destruction in connection with Hurricane Helene and disruption to modes of communication, mortgagees may offer and provide the forbearance unless the borrower affirmatively declines the offer.

Home Equity Conversion Mortgages

HECMs that become due and payable for reasons other than the death of the last surviving borrower and eligible non-borrowing spouse are subject to a 90-day extension of HECM foreclosure timelines.
In PDMDAs, FHA provides HECM mortgagees an automatic 90-day extension from the date of the PDMDA foreclosure extension expiration date to commence or recommence a foreclosure action.

Preparing for Longer-Term Recovery

In preparation for assisting homeowners with longer-term recovery efforts, mortgagees should also review the following:

Guidance for FHA’s 203(h) Mortgage Insurance for Disaster Victims in Section II.A.8.b of Handbook 4000.1. The 203(h) program provides mortgage insurance for mortgages used to finance the rehabilitation or reconstruction of an existing home or the purchase of another one for victims who have lost their homes due to a major disaster in a PDMDA.
Guidance for FHA’s 203(k) Rehabilitation Mortgage Insurance Program in Section II.A.8.a of Handbook 4000.1. The 203(k) program provides mortgage insurance for financing or refinancing of a home, including the cost of repairs or renovation – structural and non-structural.

Find additional disaster resources from HUD and other Federal and state agencies to help with disaster recovery on HUD’s Disaster Resources web page.

For questions or additional information, contact the FHA Resource Center.

September 2024

FHA INFO 2024-63 - FHA Finalizes Updates to Debenture Interest Rates and Reimbursement Process for Home Equity Conversion Mortgage Claims

September 4, 2024 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024-18, Debenture Interest Rates for Home Equity Conversion Mortgages (HECM). This ML updates the debenture interest rate used for the payment of debenture interest for HECM claims and establishes a process for adjusting debenture interest for claims already filed on HECMs that became due and payable on or after September 19, 2017. Today’s ML takes into consideration industry feedback received on the draft ML that was previously announced in FHA INFO 2024-47.

This ML:

Modifies 24 CFR § 206.146 by defining the date of default as the date for determining the debenture interest rate on loans that become due and payable after publication of this ML and reaffirms the interest rate used for the payment of debenture interest for HECM claims to align with the 2017 rule;
Adds Debenture Interest Rates (Section III.B.2.f.i(F)) to the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1); and
Establishes a Debenture Interest Rate Adjustment (DIRA) process so HECM holders, or their authorized representative, can request an adjustment to the debenture interest rate used to calculate payments for claims filed on HECMs that became due and payable on or after September 19, 2017, and filed prior to September 28, 2024.

The DIRA process will be available from January 2, 2025, through July 1, 2025. To aid HECM holders and their authorized representatives with this process, HUD is providing a DIRA request template that may be used for DIRA submissions as Attachment 1 to the Mortgagee Letter.

HUD encourages all HECM holders to thoroughly analyze their portfolio to determine which HECM claims they are legally entitled to include in a DIRA submission, as only one DIRA and one corrective DIRA will be accepted by HUD.

The provisions of this ML are effective September 28, 2024. The policy updates in this ML will be incorporated into a future version of the Handbook 4000.1.

August 2024

FHA INFO 2024-62 - FHA Reposts its Draft Modernization of Engagement with Borrowers in Default Mortgagee Letter

August 30, 2024 - Today, the Federal Housing Administration (FHA) posted an enhanced draft version of the Modernization of Engagement of Borrowers in Default Mortgagee Letter (ML) on its Single Family Housing Drafting Table. This enhanced version includes line numbers in the left margin to easily cross reference to the feedback worksheet. No other changes were made. FHA makes this enhancement to better serve all its stakeholders.

The review period to provide feedback on the draft ML ends on September 13, 2024. Instructions for viewing the draft ML and providing feedback are available on the FHA Single Family Housing Drafting Table. Feedback already submitted is under review and does not need to be resubmitted. FHA will carefully consider all feedback received before publishing a final ML.

FHA INFO 2024-60 - FHA Announces Interim Procedures for Nonjudicial Foreclosures with Secretary-Held Liens

August 29, 2024 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024-17, Interim Procedures for Nonjudicial Foreclosures with Secretary-Held Liens, which establishes an interim process for releasing FHA subordinate Secretary-held liens following the completion of a nonjudicial foreclosure sale where there are no surplus funds available to satisfy HUD’s subordinate lien.

The guidance in this ML is optional and applies to all FHA Title II Single Family forward mortgages. The provisions in the ML may be implemented immediately.

FHA is developing permanent policy to provide a new reporting requirement for all foreclosures, but primarily for foreclosures where there are Secretary-held subordinate liens. That policy will be posted on the Single Family Housing Policy Drafting Table for public review and feedback in the future. Mortgagees and other interested parties are encouraged to thoroughly review ML 2024-17 and refer any questions to the FHA Resource Center.

FHA INFO 2024-59 - FHA Implements System Enhancements to Accommodate Revision to 203(k) Rehabilitation Mortgage Insurance Program

August 22, 2024 - On July 9, 2024, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024-13, Revisions to the 203(k) Rehabilitation Mortgage Insurance Program including updates to the 203(k) Consultant Requirements and Fees. This ML implements updates to the Section 203(k) program guidelines and is intended to reduce barriers to using the program.

To support the implementation of the updates announced in ML 2024-13, FHA will make the following system updates for forward mortgages in FHA Connection (FHAC):

Increase the maximum total rehabilitation cost for Limited 203(k) from $35,000 to $75,000.
Increase the allowable financed mortgage payment reserves from six months to 12 months for a Standard 203(k) loan.
- Add a Notice of Return (NOR) edit on insurance application to ensure the financed amount does not exceed 12 months of Principle, Interest, Taxes, and Insurance (PITI).
Allow 203(k) Consultant fees to be financed for a Limited 203(k) loan.
Extend the maximum rehabilitation period as follows:
- Limited 203(k): Nine months
- Standard 203(k):12 months

These system updates will be available in conjunction with the implementation of the ML 2024-13 for all FHA case numbers assigned on or after November 4, 2024. The FHAC Guide has been updated to reflect these changes and is available on the portal homepage.

For submissions through FHAC Business-to-Government (B2G), the data must be submitted for FHA case numbers assigned on or after November 4, 2024. The FHAC B2G submission requirements accommodate the new data fields. Refer to the B2G Interface webpage for technical requirements.

FHA INFO 2024-53 - FHA Publishes Final Rule for Modernization of Engagement with Mortgagors in Default

August 2, 2024 - Today, the Federal Housing Administration (FHA) published a final rule, Modernization of Engagement with Mortgagors in Default (Docket No. FR-6353-F-02) in the Federal Register (FR).

This final rule updates the Department of Housing and Urban Development’s (HUD) current regulation (24 CFR 203.604) that requires mortgagees to meet in person with borrowers who are in default on their mortgage payments. The final rule allows for the use of electronic and other remote methods of communication to satisfy HUD’s requirement to meet with a borrower who is in default. HUD’s updated regulation will align with advances in electronic communication technology and borrower engagement preferences while preserving necessary consumer protections. The provisions in this final rule become effective on January 1, 2025.

This final rule takes into consideration public comments received in response to the proposed rule [Docket No. FR-6353- P-01], published on July 31, 2023, as announced in FHA INFO 2023- 60.

FHA will soon post a draft of the Mortgagee Letter (ML) that will implement the provisions of the rule on the Single Family Housing Drafting Table for stakeholder feedback. Following the feedback period, FHA will carefully consider all feedback received before publishing a final ML.

FHA issued regulatory and Handbook waivers permitting mortgagees to use electronic and remote means of communication during the COVID-19 pandemic, which were extended on April 4, 2024. Those waivers remain in effect and were extended through January 1, 2025, unless the final rule amending 24 CFR § 203.604 and a ML or Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1) update amending Section III.A.2.h.xii. become effective prior to that date.

July 2024

FHA INFO 2024-51 - Extension of the Foreclosure Moratorium in Connection with the Presidentially-Declared Major Disaster Area in Maui County, Hawaii

July 25, 2024 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024-15, Third Extension of the Foreclosure Moratorium in Connection with the Presidentially-Declared Major Disaster Area in Maui County, Hawaii. This new extension — which is effective immediately — gives homeowners with FHA-insured mortgages in Maui County additional time to access available federal, state, or local housing resources; consult with HUD-approved housing counselors; and/or rebuild their homes.

FHA believes that due to the extent of the devastation from the wildfires, the reduced capacity to access needed resources, and the unique geographic location of Maui, this further extension for the properties in Maui County is warranted.

The provisions of ML 2024-15 apply to all FHA Title II Single Family forward and Home Equity Conversion Mortgage (HECM) programs. The moratorium will remain in effect through January 1, 2025.

Mortgagees are required to implement this policy immediately. Stakeholders should contact the FHA Resource Center if they have questions after reviewing the ML.

FHA INFO 2024-47 - HUD Proposes Updates to Debenture Interest Rates for Home Equity Conversion Mortgage Claims

July 17, 2024 - Today, the Federal Housing Administration (FHA) posted a new draft Mortgagee Letter (ML), Calculation of Debenture Interest Rates for Home Equity Conversion Mortgages (HECM), on FHA’s Office of Single Family Housing Drafting Table (Drafting Table) for public review and feedback. This draft ML proposes updates to HUD’s calculations for the payment of debenture interest for HECM claims and establishes a process for retroactively adjusting the calculation of debenture interest for claims filed on HECMs that became due and payable on or after September 19, 2017.

On January 19, 2017, HUD updated the HECM program by publishing the final rule Strengthening the Home Equity Conversion Mortgage Program. This final rule updated 24 CFR§ 206.146(b) to provide that, for HECMs endorsed after January 23, 2004, if an insurance claim was paid in cash, the debenture interest rate for purposes of calculating the claim shall be the monthly average yield on United States Treasury Securities adjusted to a constant maturity of 10 years, for the month in which the default on the mortgage occurred. HUD, however, never fully implemented this regulatory change. To reaffirm its commitment to the future success of the HECM program and the senior citizen population it is designed to serve, HUD has determined that changes to its debenture interest payment methodology are necessary to maintain long-term program stability.

With this draft ML, FHA proposes to:

Modify 24 CFR § 206.146 for the calculation of the debenture interest rate including using the date of default as the date for determining the debenture interest rate on loans that become due and payable after publication of the final ML.
Add debenture interest rates (Section III.B.2.f.i(F)) to the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1); and
Establish a Debenture Interest Rate Adjustment (DIRA) process whereby HECM holders can request an adjustment for mortgages that became due and payable on or after September 19, 2017, and filed a claim prior to the effective date of the final ML, if an insurance claim was paid in cash.

FHA believes that the proposed amendments to the HECM policy are necessary to improve the fiscal safety and soundness of the HECM program.

Interested stakeholders are encouraged to thoroughly review the draft ML and provide feedback through July 29, 2024. Instructions for providing feedback are posted on the Drafting Table. FHA will carefully consider all feedback received before publishing a final ML.

As a reminder, this draft is not official departmental policy and cannot be used in connection with any FHA-insured mortgage until finalized. FHA’s existing policies remain in effect until amended.

FHA INFO 2024-56 - FHA Updates Origination Defect Taxonomy to Include Fraud or Misrepresentation Involving Sponsored Third-Party Originators

July 10, 2024 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024-14, Fraud or Misrepresentation Involving Sponsored Third-Party Originators.

This ML updates FHA’s Defect Taxonomy to include fraud or material misrepresentation involving a Third-Party Originator (TPO) as a Tier 1 severity defect. Mortgagees are responsible for the actions of their sponsored TPOs under 24 CFR § 202.8(a)(3) and Handbook 4000.1 Section I.A.5.a.v. FHA is implementing these changes to better align the Defect Taxonomy with these existing requirements and mitigate risk to the Mutual Mortgage Insurance Fund (MMI Fund).

FHA’s Defect Taxonomy is its quality assurance framework for all Title II loan reviews. It provides a consistent methodology for identifying defects at the loan level, useful data, feedback through structured categorization of defects, and balance between FHA’s risk management and quality assurance business processes.

The provisions of this ML apply to all FHA Title II Single Family mortgage programs and are effective immediately.

This policy update will be incorporated into a future version of FHA’s Single Family Housing Handbook 4000.1.

FHA INFO 2024-44 - FHA Announces Updates to its 203(k) Rehabilitation Mortgage Program and 203(k) Industry Stakeholder Briefing

July 9, 2024 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024-13, Revisions to the 203(k) Rehabilitation Mortgage Insurance Program including updates to the 203(k) Consultant Requirements and Fees. This ML implements updates to the Section 203(k) program guidelines, which are intended to reduce barriers to using the program.

Enhancing the 203(k) Rehabilitation Mortgage Insurance Program (203(k) program) is an integral part of FHA’s goals to increase the supply of affordable housing, expand affordable financing options for homes in need of repair, and stabilize neighborhoods by reducing the blight of vacant and abandoned properties.

With the publication of today’s ML, FHA has now enhanced its 203(k) program guidelines to:

increase the Limited 203(k) total rehabilitation cost from a maximum of $35,000 to a maximum of $75,000;
introduce an annual review process for updating the maximum total rehabilitation cost for Limited 203(k);
extend the rehabilitation period to 12 months for the Standard 203(k) and nine months for the Limited 203(k);
increase the number of days that a borrower is unable to occupy the subject property during the rehabilitation period for Limited 203(k) from 15 to 30 days;
permit mortgagees to increase the number of months of financeable Mortgage Payment Reserves for the Standard 203(k);
allow financing of 203(k) Consultant fees for Limited 203(k); and
revise the 203(k) Consultant fee schedule.

FHA believes these latest revisions will make the program offerings more attractive to mortgagees, 203(k) Consultants, real estate professionals, home buyers, and homeowners as a tool for revitalizing homes and neighborhoods, thereby providing greater access to, and increased production of, affordable housing.

The publication of these policy updates is the result of many months of engagement with stakeholders. In recent years home buyers obtained fewer 203(k) program renovation mortgages despite the growing market need.

To identify potential causes for that decline and opportunities to improve the 203(k) program, FHA undertook a two-pronged approach — by first publishing on February 14, 2023, a Request for Information (RFI) notice in the Federal Register [Docket No. FR-6366-N-1] seeking public comments, and then following up by posting the draft ML on its Single Family Housing Policy Drafting Table on November 29, 2023, seeking stakeholder feedback — regarding the barriers that might be limiting the program’s usage.

The program enhancements contained in today’s ML must be implemented for all FHA case numbers assigned on or after November 4, 2024, and will be incorporated into a future update of the FHA Single Family Housing Policy Handbook 4000.1.

Stakeholders are encouraged to thoroughly review ML 2024-13 and contact the FHA Resource Center with any questions.

For more information, read today's press release.

Technology Updates

Technology systems updates supporting these changes will be communicated in a future FHA INFO.

Industry Stakeholder Briefings — Updates to FHA’s 203(k) Program

FHA subject matter experts will host two industry stakeholder briefings with mortgagees, 203(k) Consultants, real estate professionals, and other interested parties regarding the recent revisions to its 203(k) Rehabilitation Mortgage Insurance Program, including updates to its 203(k) Consultant requirements and fees. Briefing details include:

Title: Updates to FHA’s 203(k) Rehabilitation Mortgage Insurance Program Industry Briefing
Dates/Times: The same information will be presented at each session. Participants may attend the session of their choice.
- Register for Session 1 — Wednesday, July 24, 2024, 3:00 PM - 4:00 PM (Eastern)
- Register for Session 2 — Wednesday, August 28, 2024, 2:00 PM - 3:00 PM (Eastern)
Target Audience: Mortgagees, existing and aspiring 203(k) Consultants, real estate professionals, and other stakeholders interested in FHA 203(k) transactions.

Registrants are invited to submit questions to sffeedback@hud.gov with the subject line:

Updates to FHA’s 203(k) Rehabilitation Mortgage Insurance Program Webinar.

The deadlines for pre-submitted questions are Wednesday, July 17, 2024, for Session 1, and Wednesday, August 21, 2024, for Session 2.

June 2024

FHA INFO 2024-40 - FHA Implements Provisions of Final Rule Clarifying Investing Mortgagees and GSE Definition

June 20, 2024 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024-12, Expansion of Government-Sponsored Enterprises (GSE) Definition and Clarification of Investing Mortgagee Definition. This ML implements the provisions of the final rule, Revision of Investing Lenders and Investing Mortgagees Requirements and Expansion of Government Sponsored Enterprises Definition, announced April 23, 2024, in FHA INFO 2024-21.

The final rule revised and clarified requirements for investing lenders and mortgagees to gain or maintain status as an FHA-approved lender or mortgagee, separately defines Government Sponsored Enterprises (GSE), including the Federal Home Loan Banks (FHLB), from other governmental entities and aligned general FHA approval standards with current industry business practices. These changes were largely designed to provide for more precise language and definitions reflecting investing lenders’ or mortgagees’ limited participation in FHA programs and did not represent a significant departure from existing requirements for most lenders and mortgagees originating, endorsing, or servicing FHA-insured loans and mortgages.

This ML provides implementation guidance for the provisions in the final rule. The policies in this ML:

Distinguishes the two types of government mortgagees:
- Governmental institutions.
- Government-sponsored enterprises (GSE).
Clarifies what activities governmental institutions and GSEs can perform as government mortgagees in FHA single family programs; and
Updates the definition of investing lenders and mortgagees.

The provisions of this ML are effective immediately and apply to all mortgagees and lenders approved for Title I and/or Title II programs. This policy update will be incorporated into a future version of Single Family Housing Handbook 4000.1.

May 2024

FHA INFO 2024-34 - Reimbursement of Attorney's Fees in Judicial Foreclosure Actions where there is an FHA Subordinate Lien

May 28, 2024 - Today, the Federal Housing Administration (FHA) published the following Frequently Asked Question (FAQ) to address inquiries received from stakeholders regarding reimbursement of attorney’s fees for judicial foreclosures in states where non-judicial foreclosure is the preferred method of foreclosure, but a mortgagee determines to proceed judicially due to the presence of an FHA subordinate lien:

Q. If the mortgagee proceeds with judicial foreclosure due to the presence of a federal lien, such as a Secretary-held lien, in a state where non-judicial foreclosure is the preferred method as listed in Appendix 5.0 of the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1), will the mortgagee be reimbursed for attorney’s fees that exceed the amount provided under the preferred method of foreclosure?

A. Yes. If the mortgagee proceeds with a judicial foreclosure due to the presence of a subordinate federal lien, such as a Secretary-held lien, in a state where non-judicial foreclosure is the preferred method as listed in Appendix 5.0 of the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1), HUD will consider judicial foreclosure to be the preferred method of foreclosure notwithstanding Appendix 5.0 of Handbook 4000.1. Therefore, HUD will reimburse attorney’s fees where the mortgagee submits a breakdown for reasonable and customary attorney’s fees that exceed the amount provided under the non-judicial foreclosure based on the Fannie Mae Allowable Foreclosure Attorney Fees Exhibit, as required under Allowable Foreclosure Attorney Fees and Fees Associated with Bankruptcy Clearance, Possessory Actions, and Completion of a DIL (III.A.2.t.ii.(F)) and For Amounts Exceeding the Maximum Fee and Not Provided for in HUD Schedule (IV.A.2.a.ii(K)(1)(b)).

FHA has been assessing feedback received from various stakeholders as it continues evaluating its policy regarding subordinate federal liens and the nonjudicial foreclosure process.

Stakeholders are encouraged to review the FAQ and contact the FHA Resource Center if there are additional questions.

FHA INFO 2024-33 - FHA Catalyst: Case Binder Module Update

May 28, 2024 - As part of the Federal Housing Administration’s (FHA) ongoing technology modernization effort, it is announcing new enhancements to the FHA Catalyst system to increase operational efficiencies and improve the customer experience. On the evening of May 31, 2024, FHA will implement the following updates to the FHA Catalyst: Case Binder Module:

New Layout: All document uploads for a single case will be combined and associated with one FHA case number. This new page layout will be available for binders currently in process and those newly uploaded.
Streamlined Submission Process: Mortgagees will no longer need to enter the Property Address, Headquarters (HQ)/Homeownership Center (HOC) Location, or Submission Type when submitting binders to FHA.
Messaging Enhancements: System messaging will be improved to include presubmission requirements and binder status.
“Save and Close” Feature: Mortgagees will have the ability to save their progress prior to submitting binders to FHA.
Notice of Return (NOR) -- Notification Functionality for Pre-Endorsement Reviews: Mortgagees that submit binders to the HOCs for pre-endorsement reviews will have the ability to send and receive notifications about NORs.

For more information, review the FHA Catalyst: Case Binder Module User Guide and User Guide Change Overview available on the FHA Catalyst: Case Binder Module webpage.

FHA INFO 2024-32 - New Cybersecurity Incident Reporting Requirements Effective Immediately; Significant Cybersecurity Incident (Cyber Incident) Reporting Requirements (ML) 2024-10

May 23, 2024 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024-10, Significant Cybersecurity Incident (Cyber Incident) Reporting Requirements. These requirements are part of the Department of Housing and Urban Development’s (HUD) commitment to the security and integrity of all its systems and technology supporting FHA operations.

Effective immediately, FHA-approved mortgagees that experience a potential or actual cyber incident must notify HUD via the FHA Resource Center at answers@hud.gov and HUD’s Security Operations Center at cirt@hud.gov within 12 hours of detection with required information as outlined in the ML.

Once notified of an incident, representatives from HUD will contact the designated representative from the institution reporting the incident to determine the appropriate mitigation steps based on the nature of the incident.

This new policy update will be incorporated under Operational Compliance (V.A.2.b), Significant Cybersecurity Incident (viii.), in the Quality Control, Oversight, and Compliance section of the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1) and is, as previously stated, effective immediately.

Stakeholders are encouraged to read today’s ML 2024-10 in its entirety and contact the FHA Resource Center if there are questions.

FHA INFO 2024-30 -FHA Publishes Updates to Single Family Housing Policy Handbook 4000.1

May 20, 2024 - Today, the Federal Housing Administration (FHA) published updates to the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1). Today’s update clarifies instructions, adds new guidance, and incorporates previously published Mortgagee Letters (ML) in Sections I, II, III, and IV as well as Appendix 7.0.

In addition to the incorporation of the updates and revisions, there are notable updates in Section II—Origination through Post-closing/Endorsement and Section III—Servicing and Loss Mitigation— of which mortgagees should take note:

II.A.8.n.vi Assumptions – Allowable Fees and Charges — In this Handbook 4000.1 update, FHA is increasing the processing fee that mortgagees can charge borrowers assuming an existing FHA-insured mortgage, from a maximum of $900 to a maximum of $1,800. This fee increase is designed to compensate mortgagees for costs of processing assumptions at a rate that is appropriate for today’s market. FHA last changed the reasonable and customary fee mortgagees could charge borrowers assuming an FHA-insured mortgage was in 2016.
III.A.1.b.i(B) Responsibility During Transfers of Servicing Rights — This change requires servicers to transfer the borrowers’ language preference to a new servicer as part of a transfer of servicing rights in support of FHA’s efforts to provide information and services to borrowers for whom English may not be their first language.

Today’s update also includes the updated Appraisal Report and Data Delivery Guide and the Single Family Default Monitoring System Reporting Codes documents that are posted to the Supplemental Documents web page.

Stakeholders are encouraged to thoroughly review and familiarize themselves with the revisions in Handbook 4000.1. See the Handbook 4000.1 Transmittal for a summary of all changes, as they reflect and incorporate updates, changes, effective dates and other pertinent information. For comparison purposes, a separate redline version has also been posted on the Handbook 4000.1 Information web page. The online version of Handbook 4000.1 is being updated and will be available soon.

Handbook 4000.1 is the comprehensive, authoritative source for Single Family Housing policy guidance for industry stakeholders doing business with FHA. It provides clear and concise policy and procedure requirements for all FHA Single Family Housing programs. FHA’s Office of Single Family Housing produces regular updates to ensure that Handbook 4000.1 remains the complete, single-source document for its latest policies, programs, and processes.

FHA INFO 2024-29 - FHA published Mortgagee Letter (ML) 2024-09, Updating FHA's Unique Entity Identifier (UEI) Requirements for FHA Eligibility.

May 16, 2024 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024- 09, Updating FHA’s Unique Entity Identifier (UEI) Requirements for FHA Eligibility. This ML updates FHA’s UEI policy for FHA-approved mortgagees as well as other entities seeking eligibility to conduct FHA business.

In August 2022, FHA implemented a UEI policy that required those doing or seeking to do business with the federal government, to register for, obtain, and maintain a UEI number in the General Services Administration’s (GSA) System for Award Management (SAM.gov). FHA is implementing this government-wide requirement at the direction of the GSA.

Today’s ML 2024-09 amends FHA’s eligibility requirements to remove the home office geographic address from data that must be the same in both the Lender Electronic Assessment Portal (LEAP) and SAM.gov. This change will streamline data reporting and support lender compliance by reducing potential contradictory information between the LEAP and SAM.gov platforms.

The revised provisions outlined in this ML apply to all FHA-approved mortgagees and those institutions seeking FHA approval, and is effective immediately.

This policy update will be incorporated into a future version of the Single Family Housing Policy Handbook 4000.1.

FHA INFO 2024-27 - Federal Register (FR) Final Rule, Floodplain Management and Protection of Wetlands; Minimum Property Standards for Flood Hazard Exposure; Building to the Federal Flood Risk Management Standard, [Docket No. FR-6272-F-02]

May 10, 2024 - On April 23, 2024, the Department of Housing and Urban Development’s (HUD) Office of Environment and Energy (OEE) published the final rule, Floodplain Management and Protection of Wetlands; Minimum Property Standards for Flood Hazard Exposure; Building to the Federal Flood Risk Management Standard, [Docket No. FR-6272-F-02] in the Federal Register.

HUD’s OEE invites FHA program participants to attend its webinar series on the final rule. This webinar series covers HUD’s new Federal Flood Risk Management Standard (FFRMS) Final Rule, published on April 23, 2024, which modifies HUD’s floodplain management regulations to better address flood risk.

The first session of the series provides background on FFRMS and comprehensive guidance on changes made to 24 CFR Part 55, including HUD’s FFRMS approach, limitations on HUD assistance in floodplains, exceptions to the Rule, and the eight-step decision-making process.

The second session of the series expands on changes made to 24 CFR Part 55, including protection of wetlands, flood insurance, notification of flood hazards, public posting, categorical exclusion and provides guidance on changes made to 24 CFR Part 200: Minimum Property Standards. Both presentations will be followed by a Q&A session.

Objectives

Learn what is included the new 24 CFR Part 55 and Part 200.
Understand how the FFRMS Floodplain is defined and other new terminology.
Hear examples from the field about how changes to the new Final Rule will affect the environmental review process.

Audience

This webinar series is intended for HUD grantees, recipients, applicants, and associated stakeholders. Part two of the series is also intended for these stakeholders along with participants of Federal Housing Administration (FHA) single family programs covered under 24 CFR Part 200.

For FHA Single Family mortgage insurance programs, the final rule revises HUD’s Minimum Property Standards (MPS) to require that, for one- to four-unit mortgaged properties that are new construction and located in a Special Flood Hazard Area (SFHA), the lowest floor of the new construction be at least two feet above base flood elevation (BFE). This requirement adds two feet of additional elevation to FHA’s existing MPS requirement as a resilience standard, though many jurisdictions already require homes in SFHAs to be elevated one or more feet above BFE. The requirement does not apply to the rehabilitation of existing structures with 203(k) insured financing, or the purchase of manufactured homes insured under FHA Single Family programs.

Contact

For registration assistance, contact the FFRMS Final Rule Webinar Series Registrar at trainings@hudexchange.info

FHA INFO 2024-25 - Second Extension of the Foreclosure Moratorium in Connection with the Presidentially-Declared Major Disaster Area in Maui County, Hawaii (ML 2024-08)

May 3, 2024 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024-08, Second Extension of the Foreclosure Moratorium in Connection with the Presidentially Declared Major Disaster Area in Maui County, Hawaii, that further extends its foreclosure moratorium for borrowers with FHA-insured mortgages in Maui County, Hawaii. This extension — which runs through August 4, 2024 — is effective immediately.

This extension recognizes the unprecedented disaster in Maui resulting from the August 2023 wildfires. Therefore, FHA has extended its moratorium to give borrowers with FHA-insured mortgages on properties located in Maui County more time to access federal, state, and/or local housing resources, and to consult with HUD-certified housing counselors, without the added burden of potential foreclosure actions.

Today’s ML also extends the deadlines for first legal action and reasonable diligence time frames to 90 days from the new August 4, 2024, moratorium date for foreclosures initiated on FHA-insured single family forward mortgages on properties in Maui County.

Additionally, mortgagees must extend the moratorium on foreclosures of FHA-insured Home Equity Conversion Mortgages (HECM) secured by properties located in Maui County. The foreclosure moratorium is applicable:

only if the HECM is due and payable for reasons other than the death of the last remaining borrower and is not subject to a deferral period; and
to the initiation of foreclosures, and foreclosures already in process.

Mortgagees and other stakeholders are encouraged to thoroughly read today’s ML 2024-08.

April 2024

FHA INFO 2024-23 - Federal Register (FR), Notice of Final Determination, Adoption of Energy Efficiency Standards for New Construction of HUD- and USDA-Financed Housing, [Docket No. FR-6271-N-03]

April 26, 2024 - Today, the Department of Housing and Urban Development’s (HUD) Office of Environment and Energy (OEE) and the U.S. Department of Agriculture (USDA) published a Notice of Final Determination, Adoption of Energy Efficiency Standards for New Construction of HUD- and USDA-Financed Housing, [Docket No. FR-6271-N-03] in the Federal Register. This final determination fulfills a statutory requirement under the Energy Independence and Security Act of 2007 (EISA) that requires HUD and USDA to jointly adopt the most recently published energy efficiency standards for single family and multifamily homes, subject to an energy efficiency determination by the U.S. Department of Energy (DOE) and a cost-benefit housing “affordability and availability” test by HUD.

This final determination follows HUD and the USDA’s preliminary determination published on May 18, 2023. At the time the preliminary determination was developed, the most recent standards that DOE determined to be energy efficient were those promulgated by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), and the International Energy Conservation Code (IECC).

The updated energy standards will lower energy costs for owners of newly-constructed homes, benefitting homeowners, FHA, and communities. HUD expects this to be particularly beneficial for low-income and rural homeowners who typically face disproportionately high energy cost burdens.

Compliance dates for this final determination vary according to program type and will follow the implementation schedule described in Section VI of the notice. For FHA-insured Single-Family programs, the 2021 IECC will be applicable to new construction where building permit applications are submitted on or after the date that is eighteen months from the Notice’s effective date. For new construction occurring in persistent poverty rural areas, as defined by USDA Economic Research Service, the 2021 IECC will be applicable no later than 24 months after the Notice’s effective date. USDA will publish a map of rural areas covered by this extension no later than 30 days after the effective date of this notice.

FHA INFO 2024-22 - Federal Register (FR) Notice, Home Equity Conversion Mortgage (HECM) for Purchase-Acceptable Monetary Investment Funding Sources and Interested Party Contributions (IPCs), [Docket No. 6382-N-02] and Mortgagee Letter 2024-06, Home Equity Conversion Mortgage (HECM) Program – Updates to Acceptable Monetary Investment Funding Sources

April 26, 2024 - Today, the Federal Housing Administration (FHA) published a Federal Register (FR) Notice, Home Equity Conversion Mortgage (HECM) for Purchase-Acceptable Monetary Investment Funding Sources and Interested Party Contributions (IPCs) (Docket 6382-N-02) and supporting Mortgagee Letter (ML) 2024-06, Home Equity Conversion Mortgage (HECM) Program – Updates to Acceptable Monetary Investment Funding Sources.

This FR Notice and ML revise some of the policy updates proposed for the HECM for Purchase program in a prior FR Notice, dated October 24, 2023, and published in the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1) update, dated October 31, 2023, which were originally scheduled to become effective on April 29, 2024.

After careful consideration of public comments received during the comment period in which some industry stakeholders raised significant concerns regarding potentially negative borrower impacts, FHA decided to not proceed with some of its planned updates to the HECM for Purchase program.

Consistent with the October 24, 2023, FR Notice, FHA will move forward with its proposal that permits contributions by the property seller, real estate agent, builder, or developer to HECM for Purchase borrowers’ closing costs. However, at this time, FHA will not allow mortgagees and third-party originators (TPO) to make such IPCs, nor will it allow premium pricing to qualify as an eligible funding source to meet the borrower’s minimum required investment. The FR Notice and ML that FHA is issuing today also restores FHA’s previous policy that discount points and interest rate buydowns are not allowable closing costs.

Background

The HECM for Purchase program is a reverse mortgage financing option that allows eligible seniors to finance the purchase of a new principal residence and obtain a HECM in a single transaction. Like a traditional HECM, borrowers are not required to make monthly mortgage payments if they live in the home, but must pay their property taxes, homeowners’ insurance, maintenance costs, and any required fees such as homeowner association (HOA) fees.

A HECM for Purchase loan allows a senior to acquire a primary residence and reduce their housing expenses by eliminating the principal and interest payment on their mortgage, helping seniors looking to relocate, downsize, move closer to their family, or increase their cash flow to supplement their income.

A HECM for Purchase loan can be difficult to obtain since the borrower is buying a new home, which will have limited equity, and therefore, requires the borrower to put forward an often significant minimum required investment.

FHA has explored ways to reduce this burden while also ensuring the program remains safe and sound and that the borrower is fully protected. FHA believes allowing some interested parties to contribute to closing costs is a prudent way to expand access to the program. FHA will continue to evaluate the HECM for Purchase market and assess the need for flexibility to enhance the program.

Effective Date and Resources

The FR Notice and ML are effective for all HECM case numbers assigned on or after April 29, 2024. All other changes previously announced in the October 24, 2023, FR Notice and October 31, 2023, Handbook 4000.1 update, remain unchanged.

Additionally, the following model loan documents have been updated to align with the provisions of today’s ML. They are available on the Single Family Model Documents web page:

HECM ARM Payment Plan
HECM Fixed Rate Payment Plan
HECM Schedule of Closing Costs

The policy updates in the ML will be incorporated into a future version of the Handbook 4000.1.

FHA INFO 2024-21 - Federal Register (FR), Revision of Investing Lenders and Investing Mortgagees Requirements and Expansion of Government-Sponsored Enterprises Definition, [Docket No. FR-6291-F-02]

April 23, 2024 - Today, the Federal Housing Administration (FHA) published a final rule, Revision of Investing Lenders and Investing Mortgagees Requirements and Expansion of Government-Sponsored Enterprises Definition (Docket No. FR-6291-F-02).

This final rule revises and clarifies requirements for investing lenders and mortgagees to gain or maintain status as an FHA-approved lender or mortgagee, separately defines Government Sponsored Enterprises (GSEs) and the Federal Home Loan Banks (FHLBs) from other governmental entities and aligns general FHA approval standards with current industry business practices. These changes are largely designed to provide for more precise language and definitions reflecting investing lenders’ or mortgagees’ limited participation in FHA programs and does not represent a significant departure from existing requirements for most lenders and mortgagees originating, endorsing, or servicing FHA-insured loans and/or mortgages.

This final rule takes into consideration comments received in response to the proposed rule published in the Federal Register (FR) on July 18, 2023, as announced in FHA INFO 2023- 57.

The provisions in this final rule become effective on May 23, 2024. FHA will soon publish a Mortgagee Letter (ML) that provides implementation guidance for the provisions in the final rule.

FHA INFO 2024-20 - Federal Register (FR), Floodplain Management and Protection of Wetlands; Minimum Property Standards for Flood Hazard Exposure; Building to the Federal Flood Risk Management Standard, [Docket No. FR-6272-F-02]

April 23, 2024 - Today, the Department of Housing and Urban Development’s (HUD) Office of Environment and Energy (OEE) published the final rule, Floodplain Management and Protection of Wetlands; Minimum Property Standards for Flood Hazard Exposure; Building to the Federal Flood Risk Management Standard, [Docket No. FR-6272-F-02] in the Federal Register.

This final rule revises HUD’s regulations governing floodplain management and the protection of wetlands to implement the Federal Flood Risk Management Standard (FFRMS) in accordance with the Executive Order 13690 "Establishing a Federal Flood Risk Management Standard and a Process for Further Soliciting and Considering Stakeholder Input”.

The final rule’s higher flood elevation standard in the MPS will apply to new construction where building permit applications are submitted on or after January 1, 2025. FHA will publish a Mortgagee Letter (ML) that provides implementation guidance for the provisions in the final rule that impact its Single Family mortgage insurance programs.

Refer to the final rule for specific compliance dates.

HUD’s OEE will host webinars to provide additional information on the FFRMS and its implementation. Additional details will be provided in a future FHA INFO.

For more information, read today's press release.

FHA INFO 2024-15 - FHA Extends Temporary Regulatory and Handbook Waivers Related to Alternative Methods for Face-to-Face Meetings with Borrowers

April 4, 2024 - Today, the Federal Housing Administration (FHA) published extensions to its temporary regulatory waiver and related Single Family Housing Policy Handbook 4000.1 waiver, which allow mortgagees to utilize alternative methods for conducting meetings with borrowers in accordance with FHA’s early default intervention requirements. These alternatives provide practical and useful methods for conducting meetings with borrowers while ensuring they still receive needed information directly from their mortgage servicer.

FHA initially published temporary partial waivers of these requirements on March 13, 2020, and previously extended them through May 31, 2024. On July 31, 2023, HUD published the proposed rule, Modernization of Engagement with Mortgagors in Default [Docket No. FR-6353- P-01] and is in the process of reviewing the public comments received and finalizing the rule and associated implementation guidance. FHA is now extending the waivers through January 1, 2025, unless the final rule amending 24 CFR § 203.604 and a Mortgagee Letter or Handbook 4000.1 update amending Section III.A.2.h.xii. become effective sooner.

For the details, read the temporary regulatory waiver and Handbook 4000.1 waiver.

March 2024

FHA INFO 2024-13 - Federal Register (FR), Mortgagee Review Board: Administrative Actions [Docket No. FR-6455-N-01]

March 29, 2024 - Today, the Federal Housing Administration (FHA) published in the Federal Register (FR), Mortgagee Review Board: Administrative Actions [Docket No. FR-6455-N-01].

This FR Notice is the annual notification of all completed administrative actions taken by the Department of Housing and Urban Development’s (HUD) Mortgagee Review Board from October 1, 2022, through September 30, 2023, where settlement agreements have been reached, civil money penalties were imposed, or FHA participation was terminated as of December 9, 2023.

The FR Notice provides a description of, and the cause for, the Mortgagee Review Board’s administrative actions against HUD-approved mortgagees in 54 fact-based cases; five cases where mortgagees failed to timely obtain a required Unique Entity Identifier; and 15 mortgagees that had annual recertification violations and were withdrawn from the program for one year.

Read the entire FR Notice by viewing the Mortgagee Review Board: Administrative Actions on www.federalregister.gov.

FHA INFO 2024-12 - Frequently Asked Question on Seller-Paid Commissions Related to the National Association of REALTORS® Settlement

March 28, 2024 - Today, the Federal Housing Administration (FHA) published Frequently Asked Questions (FAQs) that address inquiries received from stakeholders regarding payment of real estate agent commissions related to the recently announced nationwide settlement agreement proposed by the National Association of REALTORS®.

Since its announcement, FHA has received questions from its stakeholders regarding how the proposed settlement agreement will affect the treatment of seller-paid buyer real estate broker fees in transactions using FHA-insured mortgage financing.

Under existing FHA policy, if sellers continue to pay buyer-side real estate agent commissions and fees as a manner of state and local law or custom, and if the commissions and fees are reasonable in amount, existing policy would not treat those payments as interested party contributions provided all other requirements are met.

FHA will continue to monitor the real estate marketplace for changes resulting from the settlement for potential impacts to its policies and will address additional questions as they develop.

Contact the FHA Resource Center as referenced below with additional questions.

FHA INFO 2024-11 - FHA Catalyst: Claims Module Information on Payment Supplement XML Requirements and Mortgagee-ID Reminder

March 25, 2024 - The Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024-02 on February 21, 2024, which introduced the new Payment Supplement loss mitigation option.

To support the implementation of ML 2024-02, FHA has updated its Claims Module for Claim Type 33 - Payment Supplement. Mortgagees must use FHA’s newly updated claims XML v1.8 for Payment Supplement bulk submissions starting May 1, 2024. Mortgagees may continue to use the current XML v1.7 for all other claims submissions.

For more information on implementing the XML v1.8 for bulk submissions in FHA Catalyst, view the FHA Catalyst: Claims Module – Single Family Forward Claims Required Fields Summary and Claims Bulk Submission XML Input File available on the FHA Catalyst: Claims Module webpage.

Reminder: Mortgagee-ID Requirement for Users of All FHA Catalyst Modules

For security purposes, all Single Family FHA Catalyst users must be registered users of FHA Connection and have an active Mortgagee-ID (M-ID) as part of their FHA Catalyst profile. An FHA Catalyst mortgagee administrator must enter an M-ID into a user’s FHA Catalyst profile as well as grant access to FHA Connection to obtain an M-ID for users currently without one.

Consistent with FHA INFO 2023-50, the M-ID requirement does not apply to FHA Catalyst: Claims Module users identified as “Contractors” in their FHA Catalyst profile.

FHA INFO 2024-09 - Changes in Branch Office Registration Requirements (ML 2024-04)

March 19, 2024 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024-04, Changes in Branch Office Registration Requirements. This ML provides lenders and mortgagees with guidance to implement the provisions of the final rule, Changes in Branch Office Registration Requirements [Docket No. FR-6321-F-02] published on February 2, 2024.

This final rule eliminated the requirement for FHA lenders and mortgagees to register branch offices in order to conduct FHA Title I or Title II loan originations.

The provisions of this ML are effective immediately and apply to all lenders and mortgagees approved for FHA Title I and/or Title II programs.

Please note that the changes in the ML do not affect the recertification for those lenders and mortgagees whose fiscal year ended December 31, 2023. Recertification fees for these institutions will be calculated based on the number of registered branches as of the last business day of their fiscal year-end certification period.

These policy updates will be incorporated into a future version of Single Family Housing Policy Handbook 4000.1.

Refer to the February 2, 2024 rule and accompanying FHA INFO 2024-01, and FHA INFO 2024-02, of February 15, 2024 for additional information.

FHA INFO 2024-08 - Updated Title I Manufactured Home Loan Limits (Title I Letter (TIL) 488)

March 18, 2024 - Today, the Federal Housing Administration (FHA) published Title I Letter (TIL) 488, Updated Title I Manufactured Home Loan Limits. This TIL implements and provides lenders offering Title I Manufactured Homes loans with revised loan limits calculated under the final rule, Indexing Methodology for Title I Manufactured Home Loan Limits (Docket No. FR-6207-F-02), published in the Federal Register on February 28, 2024.

The final rule establishes indexing methodologies to calculate future loan limits for Manufactured Home Loans, Manufactured Home Lot Loans, and Manufactured Home and Lot Combination Loans for the Title I Manufactured Home Loan program.

As a result of this new indexing methodology, Title I Manufactured Home nationwide loan limits will be adjusted as follows, for FHA case numbers assigned on or after March 29, 2024:

New Loan Limits	Prior Loan Limits
Manufactured Home Loan: Single-section: $105,532 Multi-section: $193,719	Manufactured Home Loan: $69,678
Manufactured Home & Lot Loan: Single-section: $148,909 Multi-section: $237,096	Manufactured Home & Lot Loan: $92,904
Manufactured Home Lot Loan: $43,377	Manufactured Home Lot Loan: $23,226

These new loan limits more accurately reflect real-world costs of manufactured homes and improve the viability of the Title I Manufactured Housing program in meeting the financing needs of manufactured home buyers.

These loan limits will be reviewed annually and adjusted if needed; however, HUD will not lower the loan limits from the previous year.

These policy updates will be incorporated into a future version of Single Family Housing Policy Handbook 4000.1.

February 2024

FHA INFO 2024-05 - FR Final Rule: Indexing Methodology for Title I Manufactured Home Loan Limits [Docket No. FR-6207-F-02]

February 29, 2024 - Today, the Federal Housing Administration (FHA) is announcing the publication of its final rule, Indexing Methodology for Title I Manufactured Home Loan Limits (Docket No. FR-6207-F-02).

This rule establishes indexing methodologies using data from the U.S. Census Bureau to annually calculate the loan limits for its Title I Manufactured Home Loan Program, which provides insurance on loans for manufactured homes titled as personal property. The methodologies introduced through this rule are intended to expand the financing options for borrowers seeking to purchase or refinance a manufactured home.

This final rule takes into consideration comments received in response to FHA’s October 18, 2022 proposed rule. The indexing methodologies in the final rule will allow FHA to annually calculate and adjust Title I Manufactured Home Loan Program loan limits using sales data compiled by the Census Bureau as follows:

Manufactured Home Loan (Home Only):
- For single-section homes, the loan limit will be set at 115 percent of the average single-section manufactured home price, with future indexing based on movement in single-section home prices; and
- For manufactured homes composed of two or more sections (multi-section homes), the loan limit will be set at 115 percent of the average new double-section home price with future indexing based on movement in double-section home prices.
- For single and multi-section homes, an inflation factor such as the Consumer Price Index for all Urban Consumers (CPI-U) from the President’s Economic Assumptions will be used to account for inflation that has occurred since the relevant Census data were collected. This will enable FHA’s loan limits to accord with current market prices more accurately for manufactured homes.
Manufactured Home Lot Loan (Lot Only):
- Manufactured Home Lot Loan limit is established by the Housing and Economic Recovery Act of 2008 (HERA), index using changes in the median new home price, which includes the value of the lot. 3. Manufactured Home and Lot Loan (Combination Loan):
- The limits for the Manufactured Home and Lot loan will be calculated using the indexed Manufactured Home Lot Loan limit, plus the applicable Manufactured Home Loan limit.

These indexing methodologies will more accurately reflect real-world costs of manufactured homes and improve the viability of the Title I Manufactured Housing program in meeting the financing needs of manufactured homebuyers. The provisions in this final rule become effective on March 29, 2024.

FHA will soon publish a Title I Letter that provides implementation guidance for the provisions in the final rule which will include the new loan limits for calendar year 2024. For more information, read today’s press release.

FHA INFO 2024-03 - Payment Supplement (ML 2024-02)

February 21, 2024 - Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2024-02, Payment Supplement. This ML establishes FHA’s new Payment Supplement loss mitigation home retention solution designed to help additional borrowers avoid foreclosure and retain their homes when other FHA home retention options are unable to generate a sustainable monthly mortgage payment reduction.

The Payment Supplement allows servicers to bring the borrower’s mortgage current and temporarily reduce the principal portion of their monthly mortgage payment for a term of three years without modifying the mortgage. The Payment Supplement is only repaid when the borrower sells or refinances the home, or the mortgage is otherwise extinguished. When implemented, the Payment Supplement will be a permanent addition to FHA’s loss mitigation tools and will be incorporated into future revisions to FHA’s loss mitigation waterfall.

This final policy takes into consideration feedback received by stakeholders on the draft MLs and Disclosures that were posted on Single Family’s Drafting Table as announced in FHA INFOs 2023-44, 2023-94, and 2023-98.

FHA is also announcing the availability of the following new Payment Supplement documents, which are located on the Single Family Model Documents web page on hud.gov:

FHA is also providing a Payment Supplement Calculation Worksheet available on the FHA SF Loss Mitigation web page as a tool to assist servicers in calculating the Payment Supplement.

Mortgage servicers may implement Payment Supplement into their operations beginning May 1, 2024, but must implement this solution by January 1, 2025.

The policy updates in this ML will be incorporated into a future version of the Single Family Housing Policy Handbook 4000.1.

FHA INFO 2024-02 - Frequently Asked Questions for Branch Registration Requirements Now Available

February 15, 2024 - Today, FHA published Frequently Asked Questions (FAQs) that address inquiries received from stakeholders regarding its final rule, Changes in Branch Office Registration Requirements published in the Federal Register on February 2, 2024. This regulation eliminated the current requirement for lenders and mortgagees to register branch offices where they originate FHA Title I or Title II loans.

Since its publication, FHA has received several questions from stakeholders. The most frequent question was whether the new branch office registration rule impacts lender approval recertifications for lenders and mortgagees whose fiscal year ended on December 31, 2023.

This new rule — which becomes effective on March 4, 2024 — is not applicable for those institutions whose fiscal year ended on December 31, 2023, and are required to recertify by March 31, 2024. Recertification fees for those lenders will be calculated based on the number of registered branches as of the last business day of their fiscal year-end certification period.

Refer to the rule and accompanying FHA INFO 2024-01 dated February 2, 2024, for information on the rule.

FHA will also soon publish a Mortgagee Letter (ML) that provides implementation guidance for the provisions in the rule.

FHA INFO 2024-01 - FR Final Rule: FHA Removes Mandatory Branch Registration Requirement [Docket No. FR-6321-F-02]

February 2, 2024 - Today, the Federal Housing Administration (FHA) published a final rule in the Federal Register, Changes in Branch Office Registration Requirements [Docket No. FR-6321-F02]. This regulation eliminates the current requirement for mortgagees and lenders to register the branch offices where they conduct FHA Title I or Title II loan originations. This final rule takes into consideration comments received in response to the proposed rule that was published on March 1, 2023.

As the mortgage industry has evolved to better leverage technology and remote service delivery, FHA believes that requiring a mortgagee or lender to register all branches is an unnecessary administrative and cost impediment to program participation. By removing these barriers, FHA hopes to incentivize additional community-based mortgage loan originators, credit unions, and others to offer FHA-insured loan products in branch offices that they did not previously register due to business volume considerations, thus expanding the availability of FHA programs to underserved communities.

This final rule:

Revises 24 CFR 202.5(k) to give mortgagees and lenders the option to register all branch offices; and
Makes fees applicable only to branch offices that mortgagees or lenders register with FHA, rather than applying fees to each branch authorized to originate Title II mortgages or Title I loans. Branch offices not registered with the Department of Housing and Urban Development (HUD) are not subject to branch registration fees and will be excluded from the HUD Lender List Search page.

Removing the requirement to register branch offices will not affect HUD’s monitoring of lenders and mortgagees. HUD will continue to maintain oversight and risk management of lenders and mortgagees that remain responsible to FHA for the actions of its branch offices and employees.

The provisions in this final rule become effective on March 4, 2024.

FHA will soon publish a Mortgagee Letter (ML) that provides implementation guidance for the provisions in the final rule.

January 2024

Need Support? Contact the FHA Resource Center.

Visit our knowledge base to obtain answers to frequently asked questions 24/7 at www.hud.gov/answers.
E-mail answers@hud.gov. Emails and phone messages will be responded to during normal hours of operation, 8:00 AM to 8:00 PM (Eastern), Monday through Friday on all non-Federal holidays.
Call 1-800-CALLFHA (1-800-225-5342). Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at 1-800-877-8339.

About FHA INFO

FHA INFO is a publication of the Federal Housing Administration's (FHA), Office of Single Family Housing, U.S. Department of Housing and Urban Development, 451 7th Street, SW, Washington, DC 20410. We safeguard our lists and do not rent, sell, or permit the use of our lists by others, at any time, for any reason.