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HUD/OH RIN: 2502-AJ53 Publication ID: Spring 2022 
Title: Federal Housing Administration (FHA) Single Family Mortgage Insurance---Streamlining and Reform of Servicing and Claim Requirements for FHA-Insured Mortgages (FR- 6206) 

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. This adversely impacts both servicers and borrows who have the costs passed onto them in the form of higher mortgage fees. Reducing 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 property related expenses found in 24 CFR 203.402(a)(b)(c) and (e) to those incurred within 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).

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
Action Date FR Cite
NPRM  04/00/2023 
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
Acting Director, Office of Single Family Asset Management
Department of Housing and Urban Development
Office of Housing
451 Seventh Street SW,
Washington, DC 20410
Phone:202 708-2121