HUD ML 2013-21 FHA's Proposed Tier Ranking System II

Investor Update: On June 12, the U.S. Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2013-21, subtitled FHA’s Proposed Tier Ranking System II; Request for Comments.

Mortgagee Letter 2013-21
To:  All Approved Mortgagees

 FHA’s Proposed Tier Ranking System II; Request for Comments

Purpose:  This Mortgagee Letter solicits comments on proposed revisions to the Federal
Housing Administration (FHA) Tier Ranking System (TRS). The TRS is
used by FHA to measure and inform mortgagees of their loss mitigation
performance. This revision, referred to as TRS II, will use more
comprehensive performance metrics than the existing TRS to evaluate each
mortgagee’s adherence to FHA’s Loss Mitigation program and default
reporting requirements, as well as to ascertain the mortgagee’s compliance
with FHA’s default servicing regulations.

Comment Due Date:  Interested parties are invited to submit comments on the
proposed changes to TRS prior to the end of the 30-day period following
publication of this Mortgagee Letter. Comments must be submitted by
e-mail to

Background on FHA’s Loss Mitigation Program: 
The FHA Loss Mitigation Program provides numerous alternatives to
foreclosure for borrowers with delinquent FHA-insured mortgages, thereby
preventing losses to the FHA Mutual Mortgage Insurance (MMI) Fund.
Since its inception in 1996, the Loss Mitigation Program has helped more
than two million homeowners through formal and informal engagement tools,
and this number continues to grow. FHA requires mortgagees to engage in
loss mitigation and relies on their full participation and cooperation in order
to protect the MMI Fund. Failure to engage in loss mitigation can subject
servicing and holding mortgagees to penalties of three times the amount of
any mortgage insurance benefits claimed by the mortgagee.

Please click here to view Mortgagee Letter 2013-21 in its entirety.

About Safeguard 
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders,  and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website:


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