MBA Statement on FHA’s Loss Mitigation Waterfall Updates

MBA’s President and CEO Bob Broeksmit, CMB, released a statement on the Federal Housing Administration’s release of its permanent loss mitigation waterfall.

“MBA appreciates FHA’s efforts to update its loss mitigation waterfall to preserve COVID-19 flexibilities and give mortgage servicers a variety of effective tools to help distressed homeowners – regardless of their financial hardship – stay in their homes.

“Mortgage servicers have provided forbearance to approximately 8.5 million borrowers since March 2020, performing diligently to implement new forbearance and home retention programs from FHA and other federal agencies. We appreciate FHA’s efforts to streamline the loss mitigation process. These flexibilities will be critically important in assisting borrowers who are impacted by natural disasters, such as the flooding in the Southeast last fall and this month’s California wildfires.

“We will work with the incoming leadership at FHA on policy changes that make mortgage servicing more efficient for consumers and servicers alike.”