source:
  type: regulation
  id: hud-ml-2024-17
  authority: HUD Mortgagee Letter 2024-17
  description: 'HUD Mortgagee Letter 2024-17. See obligation entries for operative

    requirements and verbatim primary-source citations.

    '
obligations:
- id: hud-ml-2024-17-sip-submission-standard
  canonical_id: hud-ml-2024-17-sip-submission-standard
  section: "HUD ML 2024-17 — Optional Interim Exception for Nonjudicial Foreclosures (b) Standard"
  description: 'Where [LENDER] elects to use this optional interim procedure to request

    release of a subordinate Secretary-held lien following a nonjudicial

    foreclosure sale, [LENDER] may only do so where (i) the nonjudicial

    foreclosure sale resulted in no Surplus Funds and (ii) nonjudicial is

    the Preferred Method of Foreclosure for the state. If the Property is

    subject to federal non-Secretary-held liens, [LENDER] must comply with

    applicable law for those federal liens, including proceeding with a

    judicial foreclosure if required.

    '
  type: do
  audit_question: For every request [LENDER] submitted under ML 2024-17's optional interim procedure to release a subordinate Secretary-held lien, can [LENDER] evidence (i) that the nonjudicial foreclosure sale produced no Surplus Funds, (ii) that nonjudicial was the state's Preferred Method of Foreclosure, and (iii) that compliance with applicable law was maintained for any federal non-Secretary-held liens?
  workflow_phase: servicing
  owner_role: default_servicing_analyst
  secondary_owner_role: compliance_officer
  cadence: per-foreclosure
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - foreclosure
  - secretary-held-lien
  - nonjudicial
  - promoted
  primary_source:
    tier: 1
    authority: "HUD ML 2024-17 — Optional Interim Exception (b) Standard"
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2024-17hsgml.pdf
    snapshot_id: 9837ce0b1b5cee8c
    fetched_at: '2026-05-22T19:54:51Z'
    content_hash: sha256:07b849f1cf06e887d26dab5ade297ee5fbf37edc0295544eb9ffe61c5141cb42
    paragraph_quote: "Mortgagees may only request release of a subordinate Secretary-held lien \nwhere a nonjudicial foreclosure sale resulted in no Surplus Funds where \nnonjudicial is the Preferred Method of Foreclosure."
    drafter_attestation: 'Copied verbatim from snapshot 9837ce0b1b5cee8c (content.txt) at

      2026-05-22T20:14Z. Substring is the (b) Standard operative

      restriction of ML 2024-17''s optional interim procedure.

      '
  promoted_at: '2026-05-22T20:17:33+00:00'
  promoted_from: hud-ml-2024-17-roundb-v1.yaml
  program_review: Does the program account for the optional-SIP conditions — using the procedure to release a subordinate Secretary-held lien only where the nonjudicial sale produced no Surplus Funds and nonjudicial is the state's Preferred Method of Foreclosure, with applicable-law compliance maintained for any federal non-Secretary-held liens?
  file_review: Spot-check SIP-release requests; confirm no Surplus Funds, nonjudicial as the state's Preferred Method, and applicable-law compliance for any federal non-Secretary-held liens.
  judgment: false
  feeds:
  - hud-ml-2024-17-claim-file-retention
- id: hud-ml-2024-17-claim-file-retention
  canonical_id: hud-ml-2024-17-claim-file-retention
  section: "HUD ML 2024-17 — Optional Interim Exception (c) Required Documentation"
  description: 'Where [LENDER] uses the ML 2024-17 optional interim procedure to request

    release of a subordinate Secretary-held lien, [LENDER] must retain

    documentation of the information submitted to HUD through SIP in the

    claim file for the affected Mortgage.

    '
  type: do
  audit_question: For every Mortgage where [LENDER] requested release of a subordinate Secretary-held lien via SIP under ML 2024-17, can [LENDER] produce from the claim file documentation of the information submitted to HUD through SIP (FHA Case Number, sale date, bid amounts, foreclosure attorney details, winning bidder type, method of foreclosure, no-Surplus-Funds certification)?
  workflow_phase: servicing
  owner_role: default_servicing_analyst
  secondary_owner_role: compliance_officer
  cadence: per-foreclosure
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - foreclosure
  - claim-file
  - recordkeeping
  - promoted
  primary_source:
    tier: 1
    authority: "HUD ML 2024-17 — Optional Interim Exception (c) Required Documentation"
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2024-17hsgml.pdf
    snapshot_id: 9837ce0b1b5cee8c
    fetched_at: '2026-05-22T19:54:51Z'
    content_hash: sha256:07b849f1cf06e887d26dab5ade297ee5fbf37edc0295544eb9ffe61c5141cb42
    paragraph_quote: "The Mortgagee must retain documentation of the information submitted to \nHUD through SIP in their claim file."
    drafter_attestation: 'Copied verbatim from snapshot 9837ce0b1b5cee8c (content.txt) at

      2026-05-22T20:14Z. Substring is the (c) Required Documentation

      retention requirement of ML 2024-17.

      '
  promoted_at: '2026-05-22T20:17:33+00:00'
  promoted_from: hud-ml-2024-17-roundb-v1.yaml
  program_review: Do the P&Ps ensure the information submitted to HUD through SIP is retained in the claim file (case number, sale date, bid amounts, foreclosure-attorney details, winning-bidder type, foreclosure method, no-Surplus-Funds certification)?
  file_review: Pull SIP-release files; confirm the claim file contains the documentation of the information submitted to HUD through SIP.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-22T20:17:33+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\hud-ml-2024-17-roundb-v1.yaml
  candidates_promoted: 2
  candidates_skipped_existing: 0
