HUD ML 2013-40 Loss Mitigation During Foreclosure Process
On November 1, the U.S. Department of Housing and Urban Development (HUD) released Mortgagee Letter 2013-40, subtitled Loss Mitigation During the Foreclosure Process.
Mortgagee Letter 2013-40
To: All Approved Mortgagees, Single Family Servicing Managers
Subject: Loss Mitigation during the Foreclosure Process
Purpose: The purpose of this Mortgagee Letter is to clarify the Department’s
requirements delineated in 24 CFR 203.502 and to communicate expectations
for servicers who are engaging in loss mitigation during the foreclosure
Effective loss mitigation is essential to stabilizing communities affected by
natural disasters, poor housing market conditions, etc. Therefore, servicers
are reminded that participation in FHA’s Loss Mitigation Program is not
optional, they are to inform borrowers of and evaluate them for each loss
mitigation retention and non-retention option1 in a timely manner.
Effective Date: Mortgagees must implement the requirements in this Mortgagee Letter
by January 1, 2014.
Affected Policy: The policies set forth in this Mortgagee Letter modify or supersede,
where there is conflict, HUD Handbook 4330.1, Rev-5, and clarify parts of
Mortgagee Letter 2000-05.
Please click here to view the letter in its entirety.
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.