source:
  type: regulation
  id: hud-ml-2023-06
  authority: "HUD Mortgagee Letter 2023-06 — Establishment of the 40-Year Loan Modification Loss Mitigation Option"
  description: 'HUD ML 2023-06 updates Handbook 4000.1 section III.A.2.o.iii(C)(2) to

    establish a standalone 40-year (480-month) Loan Modification for FHA''s

    COVID-19 Recovery Modification when Partial Claim funds are not available.

    '
obligations:
- id: hud-ml-2023-06-implementation-deadline
  canonical_id: hud-ml-2023-06-implementation-deadline
  section: "HUD ML 2023-06 — Effective Date"
  description: '[LENDER] may implement the standalone-40-year COVID-19 Recovery

    Modification provisions of HUD ML 2023-06 immediately but must implement

    them no later than May 8, 2023.

    '
  type: do
  audit_question: Can [LENDER] demonstrate that the ML 2023-06 standalone 40-year COVID-19 Recovery Modification was implemented in its loss-mitigation operations no later than May 8, 2023?
  workflow_phase: servicing
  owner_role: default_servicing_analyst
  secondary_owner_role: compliance_officer
  cadence: continuous
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - covid-19-recovery
  - loan-modification
  - effective-date
  - promoted
  primary_source:
    tier: 1
    authority: "HUD ML 2023-06 — Effective Date"
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2023-06hsgml.pdf
    snapshot_id: 08ce648d1d15a416
    fetched_at: '2026-05-22T19:56:40Z'
    content_hash: sha256:4e2aebd21e0aa2f2dc6dca311ac2f29bb5229a7553903ba4acb568e3acebffc0
    paragraph_quote: "The provisions of this ML may be implemented immediately but must be \nimplemented no later than May 8, 2023."
    drafter_attestation: 'Copied verbatim from snapshot 08ce648d1d15a416 (content.txt) at

      2026-05-22T20:00Z. Substring is the Effective Date trigger of

      ML 2023-06.

      '
  promoted_at: '2026-05-22T20:56:14+00:00'
  promoted_from: hud-ml-2023-06-roundb-v1.yaml
  program_review: Does the program account for the implementation deadline — adopting the standalone 40-year COVID-19 Recovery Modification no later than May 8, 2023?
  file_review: Review the loss-mit procedure version history; confirm the standalone 40-year Recovery Modification was operational by May 8, 2023.
  judgment: false
- id: hud-ml-2023-06-recovery-modification-definition
  canonical_id: hud-ml-2023-06-recovery-modification-definition
  section: "HUD ML 2023-06 — COVID-19 Recovery Modification Definition (III.A.2.o.iii(C)(2)(a))"
  description: 'Under HUD ML 2023-06, the COVID-19 Recovery Modification that [LENDER]

    offers is a 360-month or 480-month Loan Modification, which must include a

    COVID-19 Recovery Partial Claim if Partial Claim funds are available. The

    Target Payment achieves a minimum 25 percent reduction to the P&I portion

    of the Borrower''s monthly Mortgage Payment.

    '
  type: do
  audit_question: For every COVID-19 Recovery Modification executed on or after May 8, 2023, can [LENDER] evidence that the modification was either a 360-month or 480-month Loan Modification, included a COVID-19 Recovery Partial Claim where Partial Claim funds were available, and targeted at least a 25 percent reduction in the P&I portion of the Borrower's monthly Mortgage Payment?
  workflow_phase: servicing
  owner_role: default_servicing_analyst
  secondary_owner_role: compliance_officer
  cadence: per-loss-mitigation-evaluation
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - covid-19-recovery
  - loan-modification
  - promoted
  primary_source:
    tier: 1
    authority: "HUD ML 2023-06 — III.A.2.o.iii(C)(2)(a)"
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2023-06hsgml.pdf
    snapshot_id: 08ce648d1d15a416
    fetched_at: '2026-05-22T19:56:40Z'
    content_hash: sha256:4e2aebd21e0aa2f2dc6dca311ac2f29bb5229a7553903ba4acb568e3acebffc0
    paragraph_quote: "The COVID-19 Recovery Modification is a 360-month or 480-\nmonth Loan Modification, which must include a COVID-19 \nRecovery Partial Claim if Partial Claim funds are available."
    drafter_attestation: 'Copied verbatim from snapshot 08ce648d1d15a416 (content.txt) at

      2026-05-22T20:00Z. Substring is the COVID-19 Recovery Modification

      definition (standalone 40-year option) incorporated into Handbook

      4000.1 III.A.2.o.iii(C)(2)(a) by ML 2023-06.

      '
  promoted_at: '2026-05-22T20:56:14+00:00'
  promoted_from: hud-ml-2023-06-roundb-v1.yaml
  program_review: Does the program account for the Recovery Modification structure — a 360- or 480-month Loan Modification including a Recovery Partial Claim where funds are available, targeting at least a 25% reduction in the P&I portion of the monthly payment?
  file_review: Spot-check Recovery Modifications executed on/after May 8, 2023; confirm 360/480-month term, a Partial Claim where funds were available, and a >=25% P&I reduction target.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-22T20:56:14+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\hud-ml-2023-06-roundb-v1.yaml
  candidates_promoted: 2
  candidates_skipped_existing: 0
