Compliance Calendar

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Subject - Modernization of Engagement with Borrowers in Default

Purpose - This Mortgagee Letter (ML) modernizes requirements for a Loss Mitigation Consultation with Borrowers in default

Effective Dates - The provisions of this ML must be implemented on January 1, 2025. This ML includes alternative interim procedures for Engaging Borrowers in
Default that may be utilized between January 1, 2025, through June 30, 2025.

Affected Programs - The provisions of this ML apply to all FHA-insured Title II Single Family forward mortgage programs.

Summary of Changes -

This ML:
• provides alternative interim procedures to conduct a loss mitigation interview with a Borrower in Default;
• updates Prohibited Fees and Charges (III.A.1.f.ii(B));
• updates Collection Communication Timeline – Standard (III.A.2.h.iii(B));
• updates Communication Methods (III.A.2.h.iv);
• replaces Face-to-Face Interviews with Loss Mitigation Consultation (III.A.2.h.xii);
• renames Section 247 Assignments (III.A.3.c.ii) and updates Standard (III.A.3.c.ii(A));
• updates Insured Mortgages on Indian Land (Section 248 Mortgages) (III.A.3.d); and
• updates Submission of Claim Form Parts to HUD for Hawaiian Home Lands Mortgages (IV.A.2.b.i(C)).

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