MBA Statement on FHA’s Adoption of New Loss Mitigation Safeguards 

MBA’s President and CEO Bob Broeksmit, CMB, released the following statement on the Federal Housing Administration’s (FHA) adoption of new loss mitigation safeguards:

“MBA welcomes FHA’s adoption of a new, permanent loss mitigation framework, which will help evaluate performance and ensure the protection of the Mutual Mortgage Insurance (MMI) fund. Specifically, we appreciate FHA’s efforts to reinstate a cap on the number of times a borrower can utilize a home-retention program and require the successful completion of trial payments to demonstrate long-term affordability. Together, these safeguards will improve sustainability, protect the FHA insurance fund, preserve borrower equity, and further align FHA with the GSEs.

“We commend FHA’s approach that appropriately balances borrower access to streamlined loss mitigation with prudent risk management. We appreciate HUD and FHA for implementing these safeguards, and we will continue to advocate for policy changes that will ensure that mortgage servicing remains efficient for both consumers and servicers.”