source:
  type: regulation
  id: hud-ml-2026-08
  authority: HUD Mortgagee Letter 2026-08
  description: HUD Mortgagee Letter 2026-08 (June 23, 2026) — Updates to Loss Mitigation Requirements.
    Updates Trial Payment Plan definitions/standard/failure and when to initiate foreclosure for FHA Title
    II forward programs; mandatory no later than September 21, 2026. Full verbatim text captured section-by-section
    from the HUD source PDF.
obligations:
- id: hud-ml-2026-08-purpose
  canonical_id: hud-ml-2026-08-purpose
  section: HUD ML 2026-08 — Purpose
  type: reference
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - ml-2026-08
  - full-text
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-08 — Updates to Loss Mitigation Requirements — Purpose
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-08hsgml.pdf
    snapshot_id: 54ec5431e27dd7a6
    fetched_at: '2026-07-13T02:11:13Z'
    content_hash: sha256:5e7e07b991ac7ffc66818c6ab33ec67d75a439964e15dbdb1762d918c36e3195
    paragraph_quote: This Mortgagee Letter (ML) updates the requirements for Trial Payment Plans (TPP)
      and for reviewing Borrowers for loss mitigation options.
- id: hud-ml-2026-08-effective-date
  canonical_id: hud-ml-2026-08-effective-date
  section: HUD ML 2026-08 — Effective Date
  type: reference
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - ml-2026-08
  - full-text
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-08 — Updates to Loss Mitigation Requirements — Effective Date
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-08hsgml.pdf
    snapshot_id: 54ec5431e27dd7a6
    fetched_at: '2026-07-13T02:11:13Z'
    content_hash: sha256:5e7e07b991ac7ffc66818c6ab33ec67d75a439964e15dbdb1762d918c36e3195
    paragraph_quote: The provisions of this ML may be implemented immediately but must be implemented
      no later than September 21, 2026.
- id: hud-ml-2026-08-affected-programs
  canonical_id: hud-ml-2026-08-affected-programs
  section: HUD ML 2026-08 — Affected Programs
  type: reference
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - ml-2026-08
  - full-text
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-08 — Updates to Loss Mitigation Requirements — Affected Programs
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-08hsgml.pdf
    snapshot_id: 54ec5431e27dd7a6
    fetched_at: '2026-07-13T02:11:13Z'
    content_hash: sha256:5e7e07b991ac7ffc66818c6ab33ec67d75a439964e15dbdb1762d918c36e3195
    paragraph_quote: The provisions of this ML apply to all FHA-insured Title II Single Family forward
      mortgage programs.
- id: hud-ml-2026-08-summary-of-changes
  canonical_id: hud-ml-2026-08-summary-of-changes
  section: HUD ML 2026-08 — Summary of Changes
  type: reference
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - ml-2026-08
  - full-text
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-08 — Updates to Loss Mitigation Requirements — Summary of Changes
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-08hsgml.pdf
    snapshot_id: 54ec5431e27dd7a6
    fetched_at: '2026-07-13T02:11:13Z'
    content_hash: sha256:5e7e07b991ac7ffc66818c6ab33ec67d75a439964e15dbdb1762d918c36e3195
    paragraph_quote: updates Trial Payment Plans – Definitions (III.A.2.i.iii(C)(1)); • updates Trial
      Payment Plans – Standard (III.A.2.i.iii(C)(2)); • updates Trial Payment Plan Failure – Standard
      (III.A.2.i.iii(C)(5)(a)); and • updates When to Initiate Foreclosure (III.A.2.p.i(C)).
- id: hud-ml-2026-08-tpp-definitions
  canonical_id: hud-ml-2026-08-tpp-definitions
  section: HUD ML 2026-08 — Trial Payment Plans — Definitions (III.A.2.i.iii(C)(1))
  type: definition
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - ml-2026-08
  - full-text
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-08 — Updates to Loss Mitigation Requirements — Trial Payment
      Plans — Definitions (III.A.2.i.iii(C)(1))
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-08hsgml.pdf
    snapshot_id: 54ec5431e27dd7a6
    fetched_at: '2026-07-13T02:11:13Z'
    content_hash: sha256:5e7e07b991ac7ffc66818c6ab33ec67d75a439964e15dbdb1762d918c36e3195
    paragraph_quote: A Trial Payment Plan (TPP) is a payment plan for a period of three months, four months
      for a Borrower in Imminent Default, or six months for Non-Borrowers Who Acquired Title through an
      Exempted Transfer, during which the Borrower must make the agreed-upon monthly payments beginning
      after the Mortgagee has approved the Borrower for a Permanent Home Retention Option or OWL, and
      prior to executing the permanent Loss Mitigation documents.
- id: hud-ml-2026-08-tpp-standard-required
  canonical_id: hud-ml-2026-08-tpp-standard-required
  section: 'HUD ML 2026-08 — Trial Payment Plans — Standard: Trial Payment Plan Required (III.A.2.i.iii(C)(2)(a))'
  type: do
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - ml-2026-08
  - full-text
  primary_source:
    tier: 1
    authority: 'HUD Mortgagee Letter 2026-08 — Updates to Loss Mitigation Requirements — Trial Payment
      Plans — Standard: Trial Payment Plan Required (III.A.2.i.iii(C)(2)(a))'
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-08hsgml.pdf
    snapshot_id: 54ec5431e27dd7a6
    fetched_at: '2026-07-13T02:11:13Z'
    content_hash: sha256:5e7e07b991ac7ffc66818c6ab33ec67d75a439964e15dbdb1762d918c36e3195
    paragraph_quote: The Mortgagee must ensure the Borrower successfully completes a TPP for a period
      of three months before executing Permanent Home Retention Option or OWL documents.
- id: hud-ml-2026-08-tpp-standard-escrow-analysis
  canonical_id: hud-ml-2026-08-tpp-standard-escrow-analysis
  section: 'HUD ML 2026-08 — Trial Payment Plans — Standard: Escrow Analysis (III.A.2.i.iii(C)(2)(a))'
  type: do
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - ml-2026-08
  - full-text
  primary_source:
    tier: 1
    authority: 'HUD Mortgagee Letter 2026-08 — Updates to Loss Mitigation Requirements — Trial Payment
      Plans — Standard: Escrow Analysis (III.A.2.i.iii(C)(2)(a))'
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-08hsgml.pdf
    snapshot_id: 54ec5431e27dd7a6
    fetched_at: '2026-07-13T02:11:13Z'
    content_hash: sha256:5e7e07b991ac7ffc66818c6ab33ec67d75a439964e15dbdb1762d918c36e3195
    paragraph_quote: The Mortgagee must complete an escrow analysis before calculating the monthly payment
      under the TPP.
- id: hud-ml-2026-08-tpp-standard-agreement
  canonical_id: hud-ml-2026-08-tpp-standard-agreement
  section: 'HUD ML 2026-08 — Trial Payment Plans — Standard: Trial Payment Plan Agreement (III.A.2.i.iii(C)(2)(c))'
  type: do
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - ml-2026-08
  - full-text
  primary_source:
    tier: 1
    authority: 'HUD Mortgagee Letter 2026-08 — Updates to Loss Mitigation Requirements — Trial Payment
      Plans — Standard: Trial Payment Plan Agreement (III.A.2.i.iii(C)(2)(c))'
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-08hsgml.pdf
    snapshot_id: 54ec5431e27dd7a6
    fetched_at: '2026-07-13T02:11:13Z'
    content_hash: sha256:5e7e07b991ac7ffc66818c6ab33ec67d75a439964e15dbdb1762d918c36e3195
    paragraph_quote: The Mortgagee must provide the TPP Agreement to all parties that will be required
      to execute the Loss Mitigation Agreement for the Permanent Home Retention Option or OWL at least
      15 Days before the date the first trial payment is due. The Borrower is not required to sign and
      return the TPP Agreement.
- id: hud-ml-2026-08-tpp-failure-standard
  canonical_id: hud-ml-2026-08-tpp-failure-standard
  section: HUD ML 2026-08 — Trial Payment Plan Failure — Standard (III.A.2.i.iii(C)(5)(a))
  type: do
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - ml-2026-08
  - full-text
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-08 — Updates to Loss Mitigation Requirements — Trial Payment
      Plan Failure — Standard (III.A.2.i.iii(C)(5)(a))
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-08hsgml.pdf
    snapshot_id: 54ec5431e27dd7a6
    fetched_at: '2026-07-13T02:11:13Z'
    content_hash: sha256:5e7e07b991ac7ffc66818c6ab33ec67d75a439964e15dbdb1762d918c36e3195
    paragraph_quote: 'The Borrower has failed a TPP when one of the following occurs:'
- id: hud-ml-2026-08-tpp-failure-third-nonacceptance
  canonical_id: hud-ml-2026-08-tpp-failure-third-nonacceptance
  section: HUD ML 2026-08 — Trial Payment Plan Failure — third-time non-acceptance (III.A.2.i.iii(C)(5)(a))
  type: do
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - ml-2026-08
  - full-text
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-08 — Updates to Loss Mitigation Requirements — Trial Payment
      Plan Failure — third-time non-acceptance (III.A.2.i.iii(C)(5)(a))
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-08hsgml.pdf
    snapshot_id: 54ec5431e27dd7a6
    fetched_at: '2026-07-13T02:11:13Z'
    content_hash: sha256:5e7e07b991ac7ffc66818c6ab33ec67d75a439964e15dbdb1762d918c36e3195
    paragraph_quote: the Borrower fails to accept a TPP Agreement for a third time during the Default
      episode;
- id: hud-ml-2026-08-tpp-failure-sfdms-report
  canonical_id: hud-ml-2026-08-tpp-failure-sfdms-report
  section: HUD ML 2026-08 — Trial Payment Plan Failure — SFDMS reporting (III.A.2.i.iii(C)(5)(a))
  type: do
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - ml-2026-08
  - full-text
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-08 — Updates to Loss Mitigation Requirements — Trial Payment
      Plan Failure — SFDMS reporting (III.A.2.i.iii(C)(5)(a))
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-08hsgml.pdf
    snapshot_id: 54ec5431e27dd7a6
    fetched_at: '2026-07-13T02:11:13Z'
    content_hash: sha256:5e7e07b991ac7ffc66818c6ab33ec67d75a439964e15dbdb1762d918c36e3195
    paragraph_quote: The Mortgagee must report a TPP failure in SFDMS, even if a subsequent TPP may be
      offered.
- id: hud-ml-2026-08-tpp-failure-90-day-extension
  canonical_id: hud-ml-2026-08-tpp-failure-90-day-extension
  section: HUD ML 2026-08 — Trial Payment Plan Failure — automatic 90-Day extension (III.A.2.i.iii(C)(5)(a))
  type: do
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - ml-2026-08
  - full-text
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-08 — Updates to Loss Mitigation Requirements — Trial Payment
      Plan Failure — automatic 90-Day extension (III.A.2.i.iii(C)(5)(a))
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-08hsgml.pdf
    snapshot_id: 54ec5431e27dd7a6
    fetched_at: '2026-07-13T02:11:13Z'
    content_hash: sha256:5e7e07b991ac7ffc66818c6ab33ec67d75a439964e15dbdb1762d918c36e3195
    paragraph_quote: HUD provides an automatic 90-Day extension for the Mortgagee to approve another Loss
      Mitigation Option, or to commence or recommence foreclosure, should a TPP fail.
- id: hud-ml-2026-08-when-to-initiate-foreclosure
  canonical_id: hud-ml-2026-08-when-to-initiate-foreclosure
  section: HUD ML 2026-08 — Mortgagee Action before Initiation of Foreclosure — When to Initiate Foreclosure
    (III.A.2.p.i(C))
  type: do
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - ml-2026-08
  - full-text
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-08 — Updates to Loss Mitigation Requirements — Mortgagee Action
      before Initiation of Foreclosure — When to Initiate Foreclosure (III.A.2.p.i(C))
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-08hsgml.pdf
    snapshot_id: 54ec5431e27dd7a6
    fetched_at: '2026-07-13T02:11:13Z'
    content_hash: sha256:5e7e07b991ac7ffc66818c6ab33ec67d75a439964e15dbdb1762d918c36e3195
    paragraph_quote: 'After at least three full monthly Mortgage Payments are due but unpaid, a Mortgagee
      may initiate a foreclosure for monetary Default if one of the following conditions is met:'
