On January 30, 2023, the Federal Housing Administration (FHA) announced that it would be “expanding and enhancing” its loss mitigation options that were developed during the COVID-19 pandemic.
For our clients servicing FHA loans, the enhancement allows it to use the full thirty percent (30%) FHA partial claim option; a five percent (5%) increase.
Even though servicers may implement this change now, FHA has mandated that this change be implemented by all servicers by April 30, 2023.
The changes are seen as improving what many have already considered to be highly successful loss mitigation programs meant to allow borrowers and non-occupant borrowers to remain in their homes.
Barton Gilman, LLP represents servicers, investors, financial institutions and national, regional and local banks in end-to-end default services. For more information contact Vincent J. Averaimo.
