source:
  type: guide
  id: hud-4000-1-iii-a-single-family-default-monitoring-system-default-reporting
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — a. Single
    Family Default Monitoring System Default Reporting (10/01/2025)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — a. Single
    Family Default Monitoring System Default Reporting (10/01/2025).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-a-single-family-default-monitoring-system-default-reporting-full
  canonical_id: hud-4000-1-iii-a-single-family-default-monitoring-system-default-reporting-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — a. Single
    Family Default Monitoring System Default Reporting (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 — a. Single
      Family Default Monitoring System Default Reporting (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: 'a. Single Family Default Monitoring System Default Reporting
      (10/01/2025) i. Definition The Single Family Default Monitoring System (SFDMS)
      is HUD’s system for tracking Mortgagee data on Defaulted Mortgages until a Default
      is resolved through reinstatement or termination. ii. Standard The Mortgagee
      must accurately report in SFDMS the required data to indicate the severity of
      Default and the Mortgagee actions taken. (A) Types of Mortgages to Report Each
      month, the Mortgagee must report all reportable Default servicing activities
      for all Mortgages that are 30, 60, and 90 Days or more in Default and all Mortgages
      in a Payment Supplement Period, as of the last Day of the month. The Mortgagee
      must report the status of four classes of Mortgages each month: • New Defaults:
      The Mortgagee must report Defaulted accounts when one full installment is due
      and unpaid (30 Days Delinquent - Status Code 42) and must continue reporting
      the applicable Status Code until the Default is resolved. • Open Defaults: The
      Mortgagee must continue to report a Status Code 42 until a servicing action
      has been initiated/approved and/or completed, which would warrant a Status Code
      change. • Defaults Resolved During the Cycle Month: The Mortgagee must report
      the appropriate Status Code to reflect that the Default has been addressed.
      • Mortgages Receiving a Payment Supplement: The Mortgagee must report Status
      Code 51 with the applicable oldest unpaid installment date and additional Status
      Codes as applicable. (B) Time Frame for Reporting For every case for which reporting
      is required, the Mortgagee must submit Default data documenting the status as
      of the end of the month by the fifth business day of the following month. In
      addition, Mortgagees may also submit Default data throughout the month. III.
      SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages
      4. Single Family Default Monitoring System Default Reporting and Non-Incentivized
      Loan Modification Report Handbook 4000.1 1434 Last Revised: 11/26/2025 (C) Reporting
      Accuracy The Mortgagee must submit a complete and accurate SFDMS report. If
      the Mortgagee submits incomplete or inaccurate data, SFDMS may automatically
      reject the report for that Mortgage or the Mortgagee’s entire monthly report.
      (D) Quality Control A Mortgagee’s Quality Control Plan must ensure that: • the
      reporting staff is properly trained; • servicing and foreclosure staff are aware
      of reporting requirements and of cases reported; and • report format and content
      are checked for errors by trained staff, whether it is prepared manually or
      by an automated system. (E) Error Reports and Correction The Mortgagee may receive
      Error Reports from two systems: • Electronic Data Interchange (EDI), which provides
      the All Transaction Sets 824 (TS 824) Report (see the Electronic Data Interchange
      Implementation Guide for additional information); or • SFDMS. The Mortgagee
      is responsible for retrieving Error Reports from these systems and submitting
      necessary corrections by the fifth business day. HUD will not provide additional
      time to enter corrections. (F) Calculation of Curtailment of Interest for Failure
      to Notify HUD of Foreclosure Initiation The Mortgagee must give Notice to HUD
      of Foreclosure Initiation within 30 Days of initiating foreclosure by reporting
      the foreclosure status in the monthly SFDMS report. This is accomplished by
      reporting DDS Code 68 for the current cycle or following cycle in which the
      first legal action is taken to initiate foreclosure. Interest is calculated
      based on the date the first legal action to initiate foreclosure was taken and
      the reporting cycle in which the action was properly reported. For each reporting
      cycle that the notification of foreclosure is delayed, the Mortgagee’s claim
      must be reduced by an amount equivalent to 30 Days of interest. Where non-compliance
      with this requirement is established, the minimum interest reduction will be
      equal to 30 Days of interest. The Mortgagee must report a DDS Code 68 to resolve
      this noncompliance. III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing
      Programs Forward Mortgages 4. Single Family Default Monitoring System Default
      Reporting and Non-Incentivized Loan Modification Report Handbook 4000.1 1435
      Last Revised: 11/26/2025 Mortgagees are responsible for self-curtailing where
      the reporting requirement was not met. (G) Reporting Delinquencies to HUD (1)
      Delinquency/Default Status Codes The Mortgagee must report the correct DDS Code
      reflecting the status of the Mortgage. The Mortgagee must include applicable
      status dates when reporting DDS Codes. The Default status date must reflect
      the date on which the Mortgage entered the DDS Code reported. (a) Reporting
      a New Default Episode Each new Default episode must be started by reporting
      DDS Code 42. If there is no open Default episode and the Mortgagee tries to
      report any other DDS Code, this will not be accepted in SFDMS. DDS Codes may
      be repeated each month until another DDS Code applies. (b) Correction of a Previously
      Reported Status Code If a Mortgagee reports a Borrower in Default in error (Status
      Code 42) for the first time in a Default episode, the Mortgagee must contact
      HUD at answers@hud.gov for assistance. When a Mortgagee discovers that the previous
      Status Code was reported in error, for any other reason, the Mortgagee must:
      • report a Status Code 25, Cancel, to advise HUD that the last Status Code reported
      was in error and should be preserved as a historical record without affecting
      the Default sequence; and • report the correct Status Code. (c) Delinquency
      Workouts Delinquency workout DDS Codes represent loss mitigation tools that
      must be reported upon approval. The Mortgagee must not wait until receipt of
      funds or executed documents to report applicable DDS Codes. Loss mitigation
      DDS Codes must be reported as the last DDS Code for the reporting month if multiple
      DDS Codes for which additional reporting is required are applicable during the
      month. III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs
      Forward Mortgages 4. Single Family Default Monitoring System Default Reporting
      and Non-Incentivized Loan Modification Report Handbook 4000.1 1436 Last Revised:
      11/26/2025 (i) Option Failure DDS Code AQ must be reported when the Borrower
      fails to perform or to fulfill obligations made for a Loss Mitigation Option.
      The Mortgagee must continue to report AQ until another DDS Code applies. (ii)
      Trial Payment Plans The Mortgagee must report the appropriate DDS Code indicating
      the Loss Mitigation Option for which the Borrower has been approved for a Trial
      Payment Plan. (d) Bankruptcy The Mortgagee must report the appropriate DDS Code
      indicating the type of bankruptcy filed, if the bankruptcy plan is confirmed,
      and the type of bankruptcy resolution. (2) Delinquency/Default Reason Codes
      The Mortgagee must report the most applicable reason for the Delinquency/Default
      using the Delinquency/Default Reason (DDR) Codes. Changes in the reason for
      Default may occur during the Default episode and must be reported accordingly.
      The Mortgagee must ensure that SFDMS reflects the appropriate Default Reason
      Code for the Default by the 90th Day of delinquency. (a) Unable to Contact Borrower
      The Mortgagee must report DDR Code 31, Unable to Contact Borrower, when the
      reason for delinquency cannot be ascertained because the Borrower cannot be
      located or has not responded to the Mortgagee’s communication attempts. If the
      Mortgagee reports DDR Code 31 in SFDMS, the Mortgagee must document its efforts
      to contact the Borrower in the Servicing File and must continue to try to determine
      the reason for Default. A Mortgagee that establishes contact with the Borrower
      must report the appropriate reason for Default. If the Mortgagee later loses
      contact with the Borrower during the Default episode, the Mortgagee must not
      report DDR Code 31, Unable to Contact Borrower. Mortgagees must instead report
      the accurate DDR Code, and then may later report DDS Code AP to reflect that
      no further loss mitigation action can be reported due to loss of contact. If
      the Mortgagee reports DDR Code 31 in error, the Mortgage must: III. SERVICING
      AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 4.
      Single Family Default Monitoring System Default Reporting and Non-Incentivized
      Loan Modification Report Handbook 4000.1 1437 Last Revised: 11/26/2025 • report
      a Status Code 25, Cancel, to advise HUD that the last Status Code reported was
      in error and should be preserved as a historical record without affecting the
      Default sequence; and • report the correct Status Code. (b) Other The DDR Code
      for Other must only be used in cases in which there is no other DDR Code to
      adequately reflect the reason for the Default. (c) Disasters The Mortgagee must
      report the most appropriate reason for the Default when the Borrower has been
      impacted by a Presidentially-Declared Major Disaster Area (PDMDA). Mortgagees
      may update to DDR Code A46 as needed. If the Borrower’s Property is damaged
      and the Borrower is experiencing income loss due to the disaster, Mortgagees
      must report DDR Code A43. Mortgagees must not report DDR Code 019 Casualty Loss
      for PDMDA damaged properties even if an insurance claim has been filed and is
      pending. • Reason Code A43 – Disaster Damaged Property • Reason Code A45 – Income
      Loss Due to Disaster • Reason Code A46 – Unable to Contact Borrower Disaster
      (3) Property Occupancy Reporting The Mortgagee must report to HUD the occupancy
      status of the mortgaged Property by reporting in SFDMS: • the Occupancy Status
      Code as determined either through contact with the Borrower or through Occupancy
      Inspections; and • if vacant, the date when the Mortgagee determined that the
      mortgaged Property became vacant. • If the mortgaged Property becomes reoccupied,
      remove the date. • If the mortgaged Property becomes re-vacated, input new date.
      The occupancy status code for Unable to Determine Occupancy must be used only
      in cases in which there is no contact with the Borrower and access to the Property
      is restricted or prohibitive. (4) Re-Default After Permanent Home Retention
      Option Is New Default If the Mortgage becomes in Default after the Mortgage
      has been reinstated through the use of a Permanent Home Retention Option, the
      Mortgagee must report this as a new Default episode. III. SERVICING AND LOSS
      MITIGATION A. Title II Insured Housing Programs Forward Mortgages 4. Single
      Family Default Monitoring System Default Reporting and Non-Incentivized Loan
      Modification Report Handbook 4000.1 1438 Last Revised: 11/26/2025 (5) Reporting
      Payment Supplement The Mortgagee must report the use of a Payment Supplement
      in SFDMS, using DDS Code 51 – Payment Supplement. • While the Borrower remains
      in the Payment Supplement Period, the Mortgagee must continue to report DDS
      Code 51 with the applicable oldest unpaid installment date, including every
      month the Borrower makes their required payment under the Payment Supplement.
      If occupancy is not required to be determined, the Mortgagee must report Occupancy
      Status Code 7 – Occupancy Determination Not Required. The Mortgagee must continue
      to report the reason for Default determined during the Default episode. • The
      Mortgagee must not report DDS Code 20 or 98 if the Payment Supplement is still
      in effect for the duration of the Payment Supplement Period. For Borrowers utilizing
      the Payment Supplement where another delinquent Status Code also applies, the
      Mortgagee must report DDS Code 51 first followed by any other applicable DDS
      Codes. After the completion or termination of the Payment Supplement Period,
      the Mortgagee must report: • DDS Code 98 if the Mortgage is current; or • the
      applicable code if the Mortgage is not current. (a) Borrower Resumes Payment
      After Payment Supplement Period If the Borrower resumes their monthly Mortgage
      Payment following the Payment Supplement Period or the Borrower requests to
      terminate the Payment Supplement and affirms they can resume their full monthly
      Mortgage Payment, the Mortgagee must report DDS Code 98. (b) Subsequent Default
      For every month the Borrower does not make their required payment under the
      Payment Supplement, the Mortgagee must report DDS Code 51 with the applicable
      oldest unpaid installment date indicating that the Mortgage is past due. The
      Mortgagee must report the applicable Occupancy Status Code and Occupancy Status
      Date based on the most recent occupancy determination. If the Borrower does
      not make their required payment under the Payment Supplement and then reinstates
      their Mortgage without the use of a Loss Mitigation Option, the Mortgagee must
      continue to report DDS Code 51 with the applicable oldest unpaid installment
      date. The Mortgagee must not report DDS Code 20 or 98 as long as the Payment
      Supplement is still in effect. III. SERVICING AND LOSS MITIGATION A. Title II
      Insured Housing Programs Forward Mortgages 4. Single Family Default Monitoring
      System Default Reporting and Non-Incentivized Loan Modification Report Handbook
      4000.1 1439 Last Revised: 11/26/2025 (i) Forbearance during Payment Supplement
      Period If the Borrower begins a Forbearance during the Payment Supplement Period,
      the Mortgagee must: • report the appropriate DDS Code for the Loss Mitigation
      Option utilized; and • continue to report DDS Code 51 with the applicable oldest
      unpaid installment date until new executed loss mitigation documents are received.
      (ii) Standalone Partial Claim after Subsequent Default If the Borrower does
      not make their required payment under the Payment Supplement and then reinstates
      their Mortgage with the use of a Standalone Partial Claim, the Mortgagee must:
      • report the appropriate DDS Code for the Standalone Partial Claim utilized;
      • continue to report DDS Code 51 with the applicable oldest unpaid installment
      date; and • not report DDS Code 20 or 98 as long as the Payment Supplement is
      still in effect. (iii)Other Loss Mitigation Options after Subsequent Default
      If the Borrower does not make their required payment under the Payment Supplement
      and then reinstates their Mortgage with the use of other Loss Mitigation Options,
      the Mortgagee must: • report the appropriate DDS Code for the Loss Mitigation
      Option utilized; • continue to report DDS Code 51 with the applicable oldest
      unpaid installment date until new executed loss mitigation documents are received;
      and • report DDS Code 98 upon reinstatement and stop reporting DDS Code 51.
      (iv) Option Failure If the Borrower does not sign and return the Payment Supplement
      Documents or does not make their required payment under the Payment Supplement
      and cannot reinstate their Mortgage with or without the use of loss mitigation,
      the Mortgagee must report DDS Code AQ – Option Failure with the applicable Occupancy
      Status Code and applicable Occupancy Status Date. III. SERVICING AND LOSS MITIGATION
      A. Title II Insured Housing Programs Forward Mortgages 4. Single Family Default
      Monitoring System Default Reporting and Non-Incentivized Loan Modification Report
      Handbook 4000.1 1440 Last Revised: 11/26/2025 (c) Sale, Refinance, or Other
      Mortgage Termination If the Borrower sells the Property, refinances the Mortgage,
      or otherwise pays the Mortgage in full before the end of the Payment Supplement
      Period, the Mortgagee must report DDS Code 13. (d) Assumption If the Mortgage
      is assumed before the end of the Payment Supplement Period, the Mortgagee must
      report DDS Code 21. (e) Bankruptcy If the Borrower is in bankruptcy and continues
      to make their required payment under the Payment Supplement, the Mortgagee is
      not required to report bankruptcy. (6) Reporting Foreclosure/CWCOT Outcomes
      The Mortgagee must report the DDS Codes that apply to the foreclosure sale,
      CWCOT, or CWCOT post-foreclosure sale outcomes at the end of each reporting
      cycle. For Properties marketed post-foreclosure sale, the applicable DDS Code
      indicating the marketing period must be reported. For all Properties sold, the
      Mortgagee must report the buyer type. Mortgagees must report the DDS Codes as
      follows: • Status Code 1J – Post-Foreclosure Sales Period • Status Code 2U –
      Owner-Occupant Buyer Successful Bidder • Status Code 2N – Nonprofit Successful
      Bidder • Status Code 2G – Governmental Entity Successful Bidder • Status Code
      2I – Investor/Other Successful Bidder • Status Code 2R – Borrower Successful
      Bidder • Status Code 2S – Servicer Successful Bidder Mortgagees must report
      one of the existing termination DDS Codes at the conclusion of the Default episode:
      • Status Code 46 – Property Conveyed to Insurer; expected to follow 2S, 1J,
      or 1E when a conveyance claim will be filed with HUD. • Status Code 48 – Claim
      without Conveyance of Title; expected to follow 2U, 2N, 2G, 2I, 2R, or 2S when
      a CWCOT claim will be filed with HUD. • Status Code 29 – Charge-off; expected
      after a 2S when a Mortgagee cannot pursue HUD disposition options and will not
      file any termination claim with HUD. • Status Code 30 – Third-Party Sale; expected
      to follow 2U, 2N, 2G, or 2I when no claim will be filed with HUD. III. SERVICING
      AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 4.
      Single Family Default Monitoring System Default Reporting and Non-Incentivized
      Loan Modification Report Handbook 4000.1 1441 Last Revised: 11/26/2025 • Status
      Code 73 – Property Redeemed; expected to follow 2S when a Borrower redeems the
      Property, and no claim will be filed with HUD.'
  judgment: false
