source:
  type: regulation
  id: hud-ml-2022-06
  authority: "HUD Mortgagee Letter 2022-06 — Establishing the Claims Standard for Reasonable Payments for Property Preservation and Protection Costs"
  description: 'HUD ML 2022-06 updates Handbook 4000.1 sections III.A.2.t.i(E) (Curtailment

    of Claims) and IV.A.2.a.ii(D) (Claim Type 01 Property Preservation and

    Protection Costs) to establish that HUD will only reimburse Mortgagees for

    reasonable Property Preservation and Protection (P&P) payments incurred

    during the P&P period.

    '
obligations:
- id: hud-ml-2022-06-reasonable-pp-payments-only
  canonical_id: hud-ml-2022-06-reasonable-pp-payments-only
  section: "HUD ML 2022-06 — Reasonable Payments for Property Preservation and Protection Costs (IV.A.2.a.ii(D)(3))"
  description: '[LENDER], as the Mortgagee on an FHA-insured Single Family Mortgage, may

    only include reasonable payments for Property Preservation and Protection

    (P&P) costs in its claim. P&P payments are considered reasonable only if

    they are incurred during the P&P period, are otherwise reimbursable, and

    meet the allowances and schedules in Appendix 7.0.

    '
  type: do
  audit_question: For every FHA Claim Type 01 conveyance claim, can [LENDER] evidence that all Property Preservation and Protection costs included on form HUD-27011 were incurred during the P&P period, are otherwise reimbursable, and meet the allowances and schedules in Appendix 7.0?
  workflow_phase: servicing
  owner_role: default_servicing_analyst
  secondary_owner_role: compliance_officer
  cadence: per-claim
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - claims
  - property-preservation
  - promoted
  primary_source:
    tier: 1
    authority: "HUD ML 2022-06 — IV.A.2.a.ii(D)(3)(a)"
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2022-06hsgml.pdf
    snapshot_id: 9e0c78f58276d2a4
    fetched_at: '2026-05-22T19:54:47Z'
    content_hash: sha256:2af39c55883452bb9b2624eb3329047ded466c61dcdab12ce6870ac69d100e72
    paragraph_quote: "Mortgagee payments for P&P costs are considered reasonable if they \nare incurred during the P&P period, are otherwise reimbursable, and \nmeet the allowances and schedules in Appendix 7.0. The Mortgagee \nmay only include reasonable payments for P&P costs in its claim."
    drafter_attestation: 'Copied verbatim from snapshot 9e0c78f58276d2a4 (content.txt) at

      2026-05-22T20:00Z. Substring is the operative Reasonable Payments

      standard incorporated into Handbook 4000.1 IV.A.2.a.ii(D)(3)(a)

      by ML 2022-06.

      '
  promoted_at: '2026-05-22T20:22:59+00:00'
  promoted_from: hud-ml-2022-06-roundb-v1.yaml
  program_review: Do the P&Ps facilitate that only reasonable P&P costs reach a conveyance claim — incurred during the P&P period, otherwise reimbursable, and within the Appendix 7.0 allowances/schedules?
  file_review: Review P&P costs on Claim Type 01 claims against Appendix 7.0; the compliance person judges whether each cost was reasonable, incurred during the P&P period, and reimbursable.
  judgment: true
- id: hud-ml-2022-06-no-pp-costs-after-period
  canonical_id: hud-ml-2022-06-no-pp-costs-after-period
  section: "HUD ML 2022-06 — Prohibition on P&P Costs Incurred After P&P Period (IV.A.2.a.ii(D)(3))"
  description: '[LENDER] must not claim Property Preservation and Protection (P&P) costs

    incurred after the P&P period for reimbursement under FHA conveyance claims.

    '
  type: dont
  audit_question: Can [LENDER] demonstrate that no Property Preservation and Protection costs incurred after the end of the P&P period (Reasonable Diligence Time Frame + Conveyance or CWCOT Time Frame) were submitted for FHA claim reimbursement?
  workflow_phase: servicing
  owner_role: default_servicing_analyst
  secondary_owner_role: compliance_officer
  cadence: per-claim
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - claims
  - property-preservation
  - promoted
  primary_source:
    tier: 1
    authority: "HUD ML 2022-06 — IV.A.2.a.ii(D)(3)"
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2022-06hsgml.pdf
    snapshot_id: 9e0c78f58276d2a4
    fetched_at: '2026-05-22T19:54:47Z'
    content_hash: sha256:2af39c55883452bb9b2624eb3329047ded466c61dcdab12ce6870ac69d100e72
    paragraph_quote: "Mortgagees must not claim P&P costs incurred after the P&P period \nfor reimbursement."
    drafter_attestation: 'Copied verbatim from snapshot 9e0c78f58276d2a4 (content.txt) at

      2026-05-22T20:00Z. Substring is the prohibition on claiming

      out-of-period P&P costs incorporated into Handbook 4000.1

      IV.A.2.a.ii(D)(3) by ML 2022-06.

      '
  promoted_at: '2026-05-22T20:22:59+00:00'
  promoted_from: hud-ml-2022-06-roundb-v1.yaml
  program_review: Do the P&Ps ensure no P&P costs incurred after the P&P period (Reasonable Diligence Time Frame + Conveyance/CWCOT Time Frame) are submitted for claim reimbursement?
  file_review: Pull conveyance claims; confirm no P&P costs incurred after the P&P period were claimed.
  judgment: false
- id: hud-ml-2022-06-effective-date-first-legal-action
  canonical_id: hud-ml-2022-06-effective-date-first-legal-action
  section: "HUD ML 2022-06 — Effective Date"
  description: '[LENDER] must implement the provisions of HUD ML 2022-06 for all

    FHA-insured Mortgages where the deadline to complete the first legal action,

    as defined in Appendix 6.0 of HUD Handbook 4000.1, is on or after

    March 31, 2022.

    '
  type: do
  audit_question: For every FHA-insured Mortgage whose first-legal-action deadline (Appendix 6.0) is on or after March 31, 2022, can [LENDER] demonstrate that the ML 2022-06 reasonable-P&P-payment standard was implemented?
  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
  - claims
  - effective-date
  - promoted
  primary_source:
    tier: 1
    authority: "HUD ML 2022-06 — Effective Date"
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2022-06hsgml.pdf
    snapshot_id: 9e0c78f58276d2a4
    fetched_at: '2026-05-22T19:54:47Z'
    content_hash: sha256:2af39c55883452bb9b2624eb3329047ded466c61dcdab12ce6870ac69d100e72
    paragraph_quote: "This ML must be implemented for all FHA-insured Mortgages where the \ndeadline to complete the first legal action, as defined in Appendix 6.0 of \nHUD Handbook 4000.1, FHA Single Family Housing Policy Handbook \n(Handbook 4000.1), is on or after March 31, 2022."
    drafter_attestation: 'Copied verbatim from snapshot 9e0c78f58276d2a4 (content.txt) at

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

      ML 2022-06.

      '
  promoted_at: '2026-05-22T20:22:59+00:00'
  promoted_from: hud-ml-2022-06-roundb-v1.yaml
  program_review: Does the program account for the applicability trigger — applying the ML 2022-06 reasonable-P&P standard to every loan whose first-legal-action deadline (Appendix 6.0) is on or after March 31, 2022?
  file_review: Spot-check loans with a first-legal-action deadline on/after March 31, 2022; confirm the reasonable-P&P standard was applied.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-22T20:22:59+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\hud-ml-2022-06-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
