HUD ML 2013-39 Methods of Communication With Borrowers
On October 28, the U.S. Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2013-39, subtitled Methods of Communication With Borrowers.
To: All Approved Mortgagees, Single Family Servicing Managers
Subject: Methods of Communication with Borrowers
Purpose: The purpose of this Mortgagee Letter is to provide updates to HUD’s policies on communicating with borrowers whose loans are delinquent or in default. These updates promote prompt and effective contact with FHA borrowers and will help to ensure that these borrowers are able to communicate with their servicers regarding their delinquencies and any available loss mitigation assistance. Specifically, this Mortgagee Letter addresses:
- Timelines and methods for communicating with borrowers;
- Policies for engaging borrowers early in their delinquency;
- Specialized collection techniques for early payment defaults and redefault; and
- FHA’s expectation for servicers to have written escalation processes and
Effective Date: These updates are effective for all mortgages in default as of January 1, 2014.
Affected Policy: The policies set forth in this Mortgagee Letter modify or supersede,
where there is conflict, the following sections of HUD Handbook 4330.1, Rev-5,
Administration of Insured Home Mortgages.
Please click here to view the letter in its entirety.
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