FHA Updates the Servicing and Loss Mitigation section of the Single Family Housing Policy Handbook (SF Handbook 4000.1)
FHA Updated the Servicing and Loss Mitigation section (section III) of the Single Family Housing Policy Handbook (SF Handbook 4000.1). Key updates include:
- A revised loss mitigation waterfall that allows servicers to review struggling borrowers for a permanent FHA Home Affordable Modification Program (FHA-HAMP) home retention option without a lengthy forbearance;
- Streamlined documentation requirements to avoid unnecessary delays and to align more closely with standard industry servicing practices, including removing signature requirements on Trial Payment Plans; and
- A revised structure for allowable costs and fees that corresponds with fee structures used by other industry participants.
The updates are effective August 17, 2021 (servicers may, however, implement the changes immediately).
Click to view the FHA Info #21-23: https://www.tenaco.com/wp-content/uploads/2021/06/FHA-Info-21-25-04-27-21.pdf
