NSC Loan Servicing Guidance
Updated Pre-Foreclosure Sale (PFS) and Deed in Lieu of Foreclosure Requirements
On July 9, 2013, FHA issued ML 13-23 to provide update PFS and DIL of Foreclosure requirements, which becomes effective October 1, 2013.
- Documentation requirements for verifying assets, income and expenses;
- Use of the Deficit Income Test (DIT);
- The elimination of the financial hardship/deficit income PFS requirement for a servicmember who has received Permanent Change of Station (PCS) Orders; and
- Validation requirements for appraisals.
Extenstion of Unemployment Special Forbearance
On June 27, 2013, FHA issued ML 13-22 making effective immediately, the Unemployment Special Forbearance extending to include 12 delinquent PITI mortgage payments.
Partial Claim Documentation and Delivery Requirements
On May 31, 2013, FHA issued ML 13-19 to provide:
- Remind Lenders of the procedures for preparing partial claim documents, calculating claim amounts and submitting partial claim documents to HUD, and
- Describe the penalties for a mortgagee’s noncompliance with HUD’s partial claim regulations at 24 CFR 203.371.
Interest Rates for Loss Mitigation Home Retention Options
On May 14, 2013, FHA issued ML 13-17 to provide guidance for determining interest rates to use when implementing FHA Loss Mitigation Home Retention options.
Subordination of Partial Claim Liens Associated with Streamlined Refinances
On May 14, 2013, FHA issued ML 13-16 to permit the subordination of Partial Claim liens for FHA Streamlined Refinances; and to eliminate consideration of Partial Claim notes from the 125 percent Combined Loan-to-Value (CLTV) ratio calculation for FHA Streamlined Refinances.
Delinq/Def Status Codes; Spec Forbear/Trial Payment Plans; Non-Incentivized Loan Mods ML 13-15
On May 9, 2013, FHA issued ML 13-15 to introduce new status codes for reporting delinquent FHA-insured mortgages in the Single Family Default Monitoring System (SFDMS), and to announce a new reporting requirement for non-incentivized loan modifications of FHA-insured loans.