FHA issued Mortgagee Letter 2023-11 clarifying loss mitigation options for non-borrowers who acquire title through a transfer that exempts the borrower’s mortgage from being called due and payable under the Garn-St. Germain Depository Institutions Act. These non-borrowers may also be referred to as successors in interest. Per the Mortgagee Letter, lenders and servicers may review exempted transferee non-borrowers who became successors in interest, and are in default or imminent default, for the FHA-HAMP loss mitigation options (which include the necessary credit review for the non-borrower). The Mortgagee Letter is effective July 21, 2023 (servicers may, however, implement the provisions immediately).
Click to view the FHA Mortgagee Letter 2023-11: https://www.tenaco.com/wp-content/uploads/2023/05/FHA-Mortgagee-Letter-2023-11-05-22-23.pdf
Click to view the FHA Info #2023-40: https://www.tenaco.com/wp-content/uploads/2023/05/FHA-Info-2023-40.pdf
