source:
  type: regulation
  id: hud-ml-2025-21
  authority: HUD Mortgagee Letter 2025-21
  description: 'HUD Mortgagee Letter 2025-21. See obligation entries for operative

    requirements and verbatim primary-source citations.

    '
obligations:
- id: hud-ml-2025-21-90-day-loss-mit-evaluation
  canonical_id: hud-ml-2025-21-90-day-loss-mit-evaluation
  section: "HUD ML 2025-21 — Loss Mitigation Program 90-Day Review (III.A.2.h.iii(B))"
  description: 'For each FHA-insured forward Mortgage in Default, [LENDER] must complete

    an evaluation of the Defaulted Mortgage for appropriate Loss Mitigation

    Options before four monthly installments are due and unpaid, and send a

    written Notice to Borrower (III.A.2.h.vi) with the determination of

    eligibility.

    '
  type: do
  audit_question: For every FHA-insured forward Mortgage in Default, can [LENDER] evidence completion of the loss-mit evaluation before four monthly installments became due and unpaid, and delivery of the written Notice to Borrower with the determination of eligibility?
  workflow_phase: servicing
  owner_role: loss_mitigation_specialist
  secondary_owner_role: default_servicing_analyst
  cadence: per-defaulted-loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - 90-day-review
  - promoted
  primary_source:
    tier: 1
    authority: "HUD ML 2025-21 — III.A.2.h.iii(B) 90-Day Review"
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-21hsgml.pdf
    snapshot_id: 0f41482d77e0986d
    fetched_at: '2026-05-22T19:55:08Z'
    content_hash: sha256:9e00d33ec9fdf534b6c34a9c479dbf829dded85b7d488a4db2186e46f1a5f729
    paragraph_quote: "A Mortgagee is required to complete an evaluation of a Defaulted Mortgage \nfor appropriate Loss Mitigation Options before four monthly installments \nare due and unpaid and send a written Notice to Borrower (III.A.2.h.vi) with \nthe determination of eligibility."
    drafter_attestation: 'Copied verbatim from snapshot 0f41482d77e0986d (content.txt) at

      2026-05-22T20:40Z. Substring is the (B) 90-Day Review operative

      standard incorporated into Handbook 4000.1 III.A.2.h.iii(B) by

      ML 2025-21.

      '
  promoted_at: '2026-05-22T20:17:43+00:00'
  promoted_from: hud-ml-2025-21-roundb-v1.yaml
  program_review: Do the P&Ps ensure each defaulted forward Mortgage is evaluated for loss-mit options before four monthly installments are due and unpaid, with a written Notice to Borrower (III.A.2.h.vi) stating the eligibility determination?
  file_review: Pull defaulted forward-Mortgage files; confirm the evaluation completed before the 4th unpaid installment and the written Notice to Borrower with the determination.
  judgment: false
  feeds:
  - hud-ml-2025-21-permanent-home-retention-documents-15-days
- id: hud-ml-2025-21-permanent-home-retention-documents-15-days
  canonical_id: hud-ml-2025-21-permanent-home-retention-documents-15-days
  section: "HUD ML 2025-21 — Execution of Permanent Home Retention Option Documents (III.A.2.i.iii(D))"
  description: 'For each Borrower who successfully completes a Trial Payment Plan (TPP)

    on a Permanent Home Retention Option, [LENDER] must send the Permanent

    Home Retention documents to the Borrower within 15 Days from the

    successful completion of the TPP. [LENDER] must also cease all

    foreclosure related activities upon acceptance of the executed Permanent

    Home Retention Option Documents.

    '
  type: do
  audit_question: For every Borrower who successfully completed a TPP on a Permanent Home Retention Option, can [LENDER] evidence (a) delivery of the Permanent Home Retention documents to the Borrower within 15 Days of TPP completion and (b) cessation of foreclosure-related activities upon acceptance of the executed documents?
  workflow_phase: servicing
  owner_role: loss_mitigation_specialist
  secondary_owner_role: default_servicing_analyst
  cadence: per-loss-mit-workout
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - loss-mitigation
  - permanent-home-retention
  - tpp
  - promoted
  primary_source:
    tier: 1
    authority: "HUD ML 2025-21 — III.A.2.i.iii(D)"
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-21hsgml.pdf
    snapshot_id: 0f41482d77e0986d
    fetched_at: '2026-05-22T19:55:08Z'
    content_hash: sha256:9e00d33ec9fdf534b6c34a9c479dbf829dded85b7d488a4db2186e46f1a5f729
    paragraph_quote: "The Mortgagee must send the Permanent Home Retention documents to the \nBorrower within 15 Days from the successful completion of a TPP."
    drafter_attestation: 'Copied verbatim from snapshot 0f41482d77e0986d (content.txt) at

      2026-05-22T20:40Z. Substring is the (D) Execution standard''s lead

      requirement; the cessation-of-foreclosure obligation immediately

      follows and is paraphrased in description.

      '
  promoted_at: '2026-05-22T20:17:43+00:00'
  promoted_from: hud-ml-2025-21-roundb-v1.yaml
  program_review: Do the P&Ps ensure Permanent Home Retention documents are sent to the Borrower within 15 Days of successful TPP completion AND that all foreclosure-related activities cease upon acceptance of the executed documents?
  file_review: Pull successful-TPP files; confirm document delivery within 15 Days and cessation of foreclosure-related activity upon acceptance of the executed documents.
  judgment: false
- id: hud-ml-2025-21-assumability-no-restrictions
  canonical_id: hud-ml-2025-21-assumability-no-restrictions
  section: "HUD ML 2025-21 — Assumability of FHA-Insured Mortgages (III.A.3.b.i)"
  description: 'All FHA-insured Mortgages serviced by [LENDER] are assumable. [LENDER]

    must not impose, agree to, or enforce legal restrictions on conveyances

    or assumptions after closing except when (a) specifically permitted by

    HUD regulations or (b) the restriction had been specified in a junior

    lien granted to [LENDER] after settlement.

    '
  type: dont
  audit_question: For every FHA-insured Mortgage in [LENDER]'s servicing portfolio, can [LENDER] demonstrate that no legal restriction on conveyance or assumption is being imposed, agreed to, or enforced, except where specifically permitted by HUD regulations or specified in a post-settlement junior lien granted to [LENDER]?
  workflow_phase: servicing
  owner_role: loss_mitigation_specialist
  secondary_owner_role: default_servicing_analyst
  cadence: continuous
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - servicing
  - assumability
  - conveyance-restrictions
  - promoted
  primary_source:
    tier: 1
    authority: "HUD ML 2025-21 — III.A.3.b.i Assumability"
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-21hsgml.pdf
    snapshot_id: 0f41482d77e0986d
    fetched_at: '2026-05-22T19:55:08Z'
    content_hash: sha256:9e00d33ec9fdf534b6c34a9c479dbf829dded85b7d488a4db2186e46f1a5f729
    paragraph_quote: "All FHA-insured Mortgages are assumable. The Mortgagee must not \nimpose, agree to, or enforce legal restrictions on conveyances or \nassumptions after closing except when:"
    drafter_attestation: 'Copied verbatim from snapshot 0f41482d77e0986d (content.txt) at

      2026-05-22T20:40Z. Substring is the (i) Assumability operative

      standard from ML 2025-21; the two carve-outs are paraphrased in

      description.

      '
  promoted_at: '2026-05-22T20:17:43+00:00'
  promoted_from: hud-ml-2025-21-roundb-v1.yaml
  program_review: Does the program account for the assumability rule and its carve-outs — imposing/agreeing/enforcing no legal restriction on conveyance or assumption after closing except where specifically permitted by HUD regulations or specified in a post-settlement junior lien granted to [LENDER]?
  file_review: Spot-check the servicing portfolio for conveyance/assumption-restriction handling; confirm no impermissible restriction is imposed or enforced outside the two carve-outs.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-22T20:17:43+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\hud-ml-2025-21-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
