FHA issued a waiver regarding early payment default review requirements for properties Impacted by Hurricanes Helene and Milton. FHA currently requires lenders to select all early payment defaults on a monthly basis and perform a loan file compliance review to insure compliance with FHA Single Family origination and underwriting requirements. The current early payment default review policy is waived for FHA-insured mortgages that: (1) are secured by properties impacted by Hurricanes Helene and Milton; (2) were closed prior to the disaster’s “incident period” (as determined by FEMA); and (3) entered early payment default between the dates of November 1, 2024, and April 30, 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 December 12, 2024.
Click to view the FHA Info #2024-88: https://www.tenaco.com/wp-content/uploads/2024/12/FHA-Info-2024-88-12-12-24.pdf
