FHA issued a waiver regarding early payment default review requirements for properties impacted by the California wildfires. FHA currently requires lenders to select all early payment defaults on a monthly basis and perform a loan file compliance review to ensure compliance with FHA Single Family origination and underwriting requirements. Per the waiver, the early payment default review requirement is waived for FHA-insured mortgages that: (1) are in the Presidentially Declared Major Disaster Areas for California Wildfires and Straight-Line Winds (DR-4856-CA); (2) have a mortgage closing date before the “incident period” start date of January 7, 2025; and (3) entered early payment default between the dates of February 1, 2025, and July 31, 2025. Lenders and servicers must continue to provide borrowers in the affected areas with appropriate FHA Loss Mitigation options, report delinquencies in the Single Family Default Monitoring System, and meet all other applicable servicing and loss mitigation requirements. The waiver went into effect April 1, 2025.
Click to view the FHA Info #2025-18: https://www.tenaco.com/wp-content/uploads/2025/04/FHA-Info-2025-18-04-01-25.pdf
