source:
  type: guide
  id: hud-4000-1-iii-k-loss-mitigation-incentives-and-title-reimbursement
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — k. Loss
    Mitigation Incentives and Title Reimbursement (10/01/2025)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — k. Loss
    Mitigation Incentives and Title Reimbursement (10/01/2025).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-k-loss-mitigation-incentives-and-title-reimbursement-full
  canonical_id: hud-4000-1-iii-k-loss-mitigation-incentives-and-title-reimbursement-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — k. Loss Mitigation
    Incentives and Title Reimbursement (10/01/2025)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — k. Loss
      Mitigation Incentives and Title Reimbursement (10/01/2025)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'k. Loss Mitigation Incentives and Title Reimbursement (10/01/2025)
      i. Loss Mitigation Incentives The Mortgagee may claim an incentive for completion
      of a permanent Loss Mitigation Option if: • three or more full monthly payments
      are Delinquent (i.e., 61 Days or more Delinquent) when the Permanent Home Retention
      Option or Home Disposition Option is approved, except the Mortgage must be 31
      Days or more Delinquent: • on the closing date for PFS for Servicemembers or
      • on the for date the DIL special warranty deed is executed for DIL for Servicemembers;
      • the Loss Mitigation Option was completed in accordance with FHA requirements;
      and III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs
      Forward Mortgages 2. Default Servicing Handbook 4000.1 1275 Last Revised: 11/26/2025
      • the correct and complete claim is submitted to HUD within 60 Days of the execution
      date of the Permanent Home Retention Option or Home Disposition Option. The
      Mortgagee may submit a claim for an incentive for the successful completion
      of the approved Loss Mitigation Options, including for Loss Mitigation Options
      associated with a PDMDA (also referred to as Disaster options), listed below.
      Loss Mitigation Option Mortgagee Incentive Partial Claim $500 for a Partial
      Claim Loan Modification (including OWL) $750 for a Loan Modification *Additionally,
      the Mortgagee is eligible to be reimbursed up to $250 for fees associated with
      title search, title policy, and/or recordation. Payment Supplement $1,750 PFS
      $1,000 DIL $250 ii. Reimbursement for Loan Modification Title Search and Recordation
      The Mortgagee may submit a claim to be reimbursed up to $250 for fees associated
      with title search, title policy, and/or recordation associated for an executed
      Loan Modification where: • three or more full monthly payments are Delinquent
      (i.e., 61 Days or more Delinquent) when the Standalone Loan Modification, Combination
      Loan Modification and Partial Claim, or OWL is approved; • the Loss Mitigation
      Option was completed in accordance with FHA requirements; and • the correct
      and complete claim for $250 is submitted to HUD within 120 Days of the execution
      date of the Loan Modification, or Loan Modification as part of a Combination
      Loan Modification and Partial Claim. The claim for reimbursement up to $250
      for fees associated with title search, title policy, and/or recordation may
      be included with the claim for a Mortgagee incentive. Mortgagees that do not
      qualify for an incentive may still submit a claim for this reimbursement.'
  judgment: false
