FHA Seeks Feedback on Proposal to Modernize Engagement with Borrowers in Default By Sept. 13

(Image courtesy of FHA)

The Federal Housing Administration on Wednesday posted a draft Mortgagee Letter about modernizing engagement with borrowers in default. The agency seeks review and feedback.

The draft Mortgagee Letter proposes policy that would align with the provisions outlined in the final rule, Modernization of Engagement with Mortgagors in Default, that was published in the Federal Register [FR-6353-F-02] on August 2. 

FHA encourages interested stakeholders to review the draft Mortgagee Letter and provide feedback through September 13.  

This draft Mortgagee Letter is not official FHA policy and cannot be used in connection with any FHA-insured mortgage until finalized, the agency noted. FHA’s existing policies remain in effect until amended.