FHA Releases Servicing Section Draft of Upcoming Single Family Housing Policy Handbook
The Federal Housing Administration (FHA) has released the draft of the new Serving Manual. Comments on the information contained in the draft manual are due by October 17, 2014.
Single Family Draft Handbook
Servicing Mortgages
The draft Servicing section of the future Federal Housing Administration (FHA) Single Family Housing Policy Handbook (SF Handbook) was posted on September 11, 2014 for stakeholder review and feedback.
Content Document
The draft Servicing section outlines the requirements associated with servicing FHA-insured single family mortgages post-endorsement through the end of the mortgage insurance contract. The section consolidates policy from the 1994 HUD Handbook 4330.1-Administration of Insured Home Mortgages and subsequent Mortgagee Letters, relevant Housing Notices, and other servicing policies and regulations published since 1994. The draft Servicing section will provide servicing mortgagees a comprehensive resource on servicing FHA-insured single family mortgages. Specifically, this section provides guidance on:
1. General servicing requirements for FHA-insured mortgages;
2. Servicing of performing mortgages;
3. Default servicing, including HUD’s Loss Mitigation Program and conveyance standards;
4. Loss mitigation performance; and,
5. Special mortgage program servicing for active and inactive programs, including:
– Hawaiian Home Lands mortgages;
– Mortgages and mortgage protection for Service Members;
– Section 235 mortgages and recapture;
– Hope for Homeowners;
– Good Neighbor Next Door Program; and,
– The Nehemiah Program.
Guidance on filing claims for FHA mortgage insurance benefits, and real estate owned or other disposition methods will be posted for feedback in the future in a separate SF Handbook section. Additionally, other items that are currently under review by FHA that are not included in today’s posting, e.g. the Cash for Keys, Property Preservation, and Reasonable Diligence timeframe requirements, will be posted later.
Reviewing and Providing Feedback
FHA invites all interested stakeholders to review the draft Servicing section and provide feedback from September 11 through October 17. Stakeholders may visit the Highlights of Changes for an overview of the key proposed policy changes in the draft Servicing section.
To facilitate FHA’s review and analysis of feedback, stakeholders are encouraged to use the Feedback Response Worksheet to record and submit feedback by October 17.
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: www.safeguardproperties.com.
