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HUD/OH | RIN: 2502-AJ53 | Publication ID: Fall 2021 |
Title: Federal Housing Administration (FHA) Single Family Mortgage Insurance---Streamlining and Reform of Servicing and Claim Requirements for FHA-Insured Mortgages (FR- 6206) | |
Abstract:
Over the past decade, the costs associated with servicing both performing and non-performing mortgages throughout the industry have increased significantly. While servicing costs have increased across the mortgage finance market since the financial crisis, independent estimates indicate that the FHA’s servicing costs for non-performing loans are now multiples above the costs of servicing conventional mortgage loans. Further, the reduction in costs of servicing will ultimately benefit the public by providing a reduced cost of credit as well as ensuring properties are returned to communities more efficiently thereby reducing vacant properties and neighborhood blight. FHA proposes to make changes to reduce costs of servicing, update and modernize regulations, and protect its portfolio. This proposed rule would streamline, reform, and update HUD’s regulations for servicing and claim requirements for FHA-insured mortgages, reduce burdens on borrowers and mortgagees, reduce FHA costs of servicing, and help safeguard FHA’s Mutual Mortgage Insurance Fund (MMIF). The reforms in this proposed rule include limiting required mortgagee curtailment of interest to the length of the mortgagee’s delay and ensure it is applied equitably across all disposition methods; limiting reimbursement of operating expenses incurred to certain established timeframes; establishing a deadline that defines FHA’s liability for claim payments for insurance benefits; modernizing requirements for lender contact with borrowers; clarifying requirements regarding second chance sales; and clarifying regulations for payment of partial claims to align with the 2008 Housing and Economic Recovery Act (HERA). |
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Agency: Department of Housing and Urban Development(HUD) | Priority: Other Significant |
RIN Status: Previously published in the Unified Agenda | Agenda Stage of Rulemaking: Proposed Rule Stage |
Major: No | Unfunded Mandates: No |
CFR Citation: 24 CFR 203 | |
Legal Authority: 12 U.S.C. 1709 12 U.S.C. 1710 12 U.S.C. 1715z-16 12 U.S.C. 1717z-21 ... |
Legal Deadline:
None |
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Timetable:
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Regulatory Flexibility Analysis Required: No | Government Levels Affected: Undetermined |
Federalism: No | |
Included in the Regulatory Plan: No | |
RIN Data Printed in the FR: No | |
Agency Contact: Elissa Saunders Director, Office of Single Family Program Development Department of Housing and Urban Development Office of Housing 451 7th Street SW, Washington, DC 20410 Phone:202 708-1672 |