# Compliance for Claude Playbook Bundle: FHA Loss Mit — current waterfall + recent ML stack _Generated 2026-07-26T14:38:43+00:00 by build-playbook-downloads.py from Compliance for Claude, at claudeforcompliance.com._ HUD Handbook 4000.1 Part III.A.2 + FHA servicing CFR + recent HUD Mortgagee Letters (2024-2025) + FNMA Servicing Part D cross-reference + Reg X §1024.41 consumer-protection floor. --- # HUD Handbook 4000.1 Part III.A.2 — Loss Mitigation (Forward Mortgages) **Register slug:** `hud-4000-1-iii-a-3-loss-mit` **Obligation count:** 5 ## Register description HUD Handbook 4000.1 Part III.A.2 (Loss Mitigation Review subchapter) governs the FHA Loss Mitigation Program: Mortgagee duties to address delinquency early, follow the Collection Communication Timeline, use the 9-option Loss Mitigation Waterfall (Repayment Plan, Forbearance, Partial Claim, Loan Modification, Combination, Payment Supplement, OWL, Pre-Foreclosure Sale, Deed-in-Lieu), and re-evaluate delinquent loans. Includes 90-Day Review pre-4- installment-default evaluation rule, SCRA-protection duty for servicemember Borrowers, and consideration of Owner-Occupant + Non-Occupant Borrowers for all options. Fills HUD 4000.1 Part III Loss Mitigation gap. ## Obligations #### HUD Handbook 4000.1 III.A.2 — Address delinquency at earliest possible time **Obligation ID:** `hud-4000-1-iii-a-3-loss-mit-address-delinquency-earliest-time` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** continuous **Operative duty (lender voice):** > In implementing HUD's Loss Mitigation Program, [LENDER] > (Mortgagee) shall consider all reasonable means to address > delinquency at the earliest possible time. The early-engagement > duty is the foundation of FHA loss mitigation; delay reduces > workout-success likelihood and increases foreclosure risk. **Compliance obligation:** > For every Delinquent FHA-insured Mortgage, can [LENDER] evidence (via servicing logs, contact-attempt records, early-stage workout-option offers) that all reasonable means were considered to address delinquency at the earliest possible time? **Verbatim regulator text:** ``` consider all reasonable means to address delinquency at the earliest possible time ``` _Authority_: HUD Handbook 4000.1 III.A.2 — Loss Mitigation Program _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z **Consequence of non-compliance:** Late-engagement loss mitigation reduces workout-success and is a FHA Servicing Guide deficiency. --- #### HUD Handbook 4000.1 III.A.2 — Re-evaluate each Delinquent Mortgage for Loss Mitigation Options **Obligation ID:** `hud-4000-1-iii-a-3-loss-mit-reevaluate-each-delinquent` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** continuous **Operative duty (lender voice):** > [LENDER] (Mortgagee) shall re-evaluate each Delinquent Mortgage > for Loss Mitigation Options, as required. Re-evaluation is > ongoing, not one-shot — circumstances change and prior workout > ineligibility may resolve; [LENDER] cannot lock a Borrower > into a single point-in-time eligibility determination. **Compliance obligation:** > For every Delinquent FHA-insured Mortgage, can [LENDER] evidence a re-evaluation schedule and produce subsequent-evaluation records reflecting any change in Borrower circumstances? **Verbatim regulator text:** ``` re-evaluate each Delinquent Mortgage for Loss Mitigation Options, as required. ``` _Authority_: HUD Handbook 4000.1 III.A.2 — Loss Mitigation Program _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z **Consequence of non-compliance:** One-shot loss-mit determinations missing re-evaluation are a FHA Servicing Guide breach + CFPB Reg X dual-tracking exposure. --- #### HUD Handbook 4000.1 III.A.2.iii(A)(1)(b) — Consider Owner-Occupant AND Non-Occupant Borrowers for all Loss Mitigation Options **Obligation ID:** `hud-4000-1-iii-a-3-loss-mit-consider-owner-occupant-and-non-occupant` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-evaluation **Operative duty (lender voice):** > [LENDER] (Mortgagee) shall consider Owner-Occupant Borrowers AND > Non-Occupant Borrowers for all Loss Mitigation Options. > Investor-occupancy or non-occupancy is NOT a categorical > disqualifier from loss mitigation — both occupancy classes get > the full waterfall review. **Compliance obligation:** > For every Loss Mitigation evaluation, can [LENDER] evidence that occupancy status (Owner-Occupant vs Non-Occupant) was NOT used to disqualify the Borrower from waterfall consideration? **Verbatim regulator text:** ``` The Mortgagee must consider Owner-Occupant Borrowers and Non-Occupant Borrowers for all Loss Mitigation Options. ``` _Authority_: HUD Handbook 4000.1 III.A.2.iii(A)(1)(b) — Occupancy Standard _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z **Consequence of non-compliance:** Excluding Non-Occupant Borrowers from waterfall review is a FHA Servicing Guide breach + potential fair-housing / ECOA exposure. --- #### HUD Handbook 4000.1 III.A.2.iii(B) — 90-Day Review: complete Loss Mit evaluation before 4 monthly installments + send written Notice **Obligation ID:** `hud-4000-1-iii-a-3-loss-mit-90-day-review-before-4-installments` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** per-defaulted-loan **Operative duty (lender voice):** > [LENDER] (Mortgagee) is required to complete an evaluation of a > Defaulted Mortgage for appropriate Loss Mitigation Options > BEFORE four monthly installments are due and unpaid AND send a > written Notice to Borrower with the determination of > eligibility. The 90-Day Review pre-4-installment bright-line > caps the loss-mit-evaluation-completion deadline for FHA loans > in default. **Compliance obligation:** > For every Defaulted FHA-insured Mortgage, can [LENDER] evidence (a) Loss Mitigation evaluation completed BEFORE the 4th monthly installment came due unpaid, AND (b) written Notice to Borrower with determination of eligibility? **Verbatim regulator text:** ``` A Mortgagee is required to complete an evaluation of a Defaulted Mortgage for appropriate Loss Mitigation Options before four monthly installments are due and unpaid and send a written Notice to Borrower with the determination of eligibility. ``` _Authority_: HUD Handbook 4000.1 III.A.2.iii(B) — 90-Day Review _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z **Consequence of non-compliance:** Missing the pre-4-installment evaluation or written notice is a 90-Day Review breach; FHA Servicing Guide defect + potential dual-tracking risk under Reg X. --- #### HUD Handbook 4000.1 III.A.2.ii — Offer SCRA mortgage protections to eligible servicemember Borrowers **Obligation ID:** `hud-4000-1-iii-a-3-loss-mit-servicemember-scra-protections` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** per-servicemember-borrower **Operative duty (lender voice):** > [LENDER] (Mortgagee) shall offer eligible servicemember Borrowers > mortgage protections under the SCRA and Servicing FHA-Insured > Mortgages for Servicemember-Borrowers. The SCRA + FHA- > servicemember dual-rule layering provides comprehensive > protection during military service. **Compliance obligation:** > For every Defaulted FHA-insured Mortgage where the Borrower is or may be a servicemember, can [LENDER] evidence (a) SCRA-eligibility verification (DMDC check, military orders) and (b) offer of the applicable SCRA mortgage protections? **Verbatim regulator text:** ``` The Mortgagee must offer eligible servicemember Borrowers mortgage protections under the SCRA and Servicing FHA-Insured Mortgages for Servicemember-Borrowers. ``` _Authority_: HUD Handbook 4000.1 III.A.2.ii — Servicemember Status _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z **Consequence of non-compliance:** Missing SCRA protections expose [LENDER] to federal SCRA enforcement + FHA Servicing Guide breach + DOJ exposure (SCRA private right of action). --- --- # HUD Handbook 4000.1 Part III.A.2 — Default Servicing (Forward Mortgages) **Register slug:** `hud-4000-1-iii-a-2` **Obligation count:** 1 ## Register description HUD Handbook 4000.1 Part III.A.2 governs Default Servicing for FHA forward mortgages: Delinquency vs Default definitions (Default = 30-day uncorrected failure); standard requiring FHA-conforming servicing of delinquent/default loans; 30-day-month convention for Default-related timelines; CRA + IRS reporting accuracy; Late Charge 15-day-late trigger and 4% P&I cap (post-3/14/2016 cases); advance-written-notice requirement before assessing Late Charge. Fills HUD 4000.1 Part III.A.2 chapter gap. ## Obligations #### HUD Handbook 4000.1 Part III.A.2 **Obligation ID:** `hud-4000-1-iii-a-2-full` **Operative duty (lender voice):** > Mortgages in Delinquency or Default: a. Mortgages in Delinquency or Default (03/31/2022) > A Mortgage is Delinquent any time a Mortgage Payment is due and not paid. > A Mortgage is in Default when the Borrower fails to make any payment or perform any > other obligation under the Mortgage, and such failure continues for a period of 30 Days… **Verbatim regulator text:** ``` a. Mortgages in Delinquency or Default (03/31/2022) A Mortgage is Delinquent any time a Mortgage Payment is due and not paid. A Mortgage is in Default when the Borrower fails to make any payment or perform any other obligation under the Mortgage, and such failure continues for a period of 30 Days. The date of Default is 30 Days after: • the first uncorrected failure to perform any obligation under the Mortgage; or • the first failure to make a monthly payment which subsequent payments by the Borrower are insufficient to cover when applied to the overdue monthly payment in the order in which they become due. The Mortgagee must ensure FHA-insured Mortgages in Delinquency or Default are serviced in accordance with FHA requirements and applicable laws. For the purpose of determining the date of Default and timelines related to Default, HUD considers all months to have 30 Days. b. Reporting to Consumer Reporting Agencies and the IRS (03/31/2022) The Mortgagee is responsible for: • complying with applicable law and federal regulations relating to reporting to consumer reporting agencies; and • ensuring that all reported information is accurate. The Mortgagee is also responsible for any required IRS reporting regarding acquisition of secured Property or cancellation of mortgage debt, in accordance with the Internal Revenue Code (IRC). c. Late Charges (10/01/2025) Late Charges are charges assessed if a Mortgage Payment is received more than 15 Days after the due date. The Mortgagee may consider a Borrower’s Mortgage Payment late if the payment is received by the Mortgagee more than 15 Days after the due date, except for payments received from Borrowers in accordance with a Trial Payment Plan Agreement. The Mortgagee may assess a late charge on the 17th Day of the month. For Mortgages assigned a case number on or after March 14, 2016, the Mortgagee may assess a Late Charge, not to exceed 4 percent of the overdue payment of P&I and in accordance with applicable state and federal laws. For Mortgages assigned a case number before March 14, 2016, the Mortgagee may assess a Late Charge calculated based on overdue PITI if permitted under the terms of the mortgage Note and under applicable state and federal laws. (A) Notifying the Borrower of the Late Charge Before collecting the Late Charge or returning a Mortgage Payment to the Borrower for failing to pay the Late Charge, the Mortgagee must provide the Borrower with an advance written notice of the charge. ``` _Authority_: HUD Handbook 4000.1 III.A.2.a.i — Definitions _Source_: _Snapshot_: `3bf33edadcf6461d` _Fetched_: 2026-05-25T14:10:11Z --- --- # HUD Handbook 4000.1 III.A.2.a — Mortgages in Delinquency or Default **Register slug:** `hud-4000-1-iii-a-2-a` **Obligation count:** 1 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.a. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.a **Obligation ID:** `hud-4000-1-iii-a-2-a-full` **Operative duty (lender voice):** > Servicing And Loss Mitigation: The Mortgagee must ensure FHA-insured Mortgages in Delinquency or Default are > serviced in accordance with FHA requirements and applicable laws. > For the purpose of determining the date of Default and timelines related to Default, HUD > considers all months to have 30 Days. > b. Reporting to Consumer … **Verbatim regulator text:** ``` The Mortgagee must ensure FHA-insured Mortgages in Delinquency or Default are serviced in accordance with FHA requirements and applicable laws. For the purpose of determining the date of Default and timelines related to Default, HUD considers all months to have 30 Days. b. Reporting to Consumer Reporting Agencies and the IRS (03/31/2022) The Mortgagee is responsible for: • complying with applicable law and federal regulations relating to reporting to consumer reporting agencies; and • ensuring that all reported information is accurate. The Mortgagee is also responsible for any required IRS reporting regarding acquisition of secured Property or cancellation of mortgage debt, in accordance with the Internal Revenue Code (IRC). c. Late Charges (10/01/2025) Late Charges are charges assessed if a Mortgage Payment is received more than 15 Days after the due date. The Mortgagee may consider a Borrower’s Mortgage Payment late if the payment is received by the Mortgagee more than 15 Days after the due date, except for payments received from Borrowers in accordance with a Trial Payment Plan Agreement. The Mortgagee may assess a late charge on the 17th Day of the month. For Mortgages assigned a case number on or after March 14, 2016, the Mortgagee may assess a Late Charge, not to exceed 4 percent of the overdue payment of P&I and in accordance with applicable state and federal laws. For Mortgages assigned a case number before March 14, 2016, the Mortgagee may assess a Late Charge calculated based on overdue PITI if permitted under the terms of the mortgage Note and under applicable state and federal laws. (A) Notifying the Borrower of the Late Charge Before collecting the Late Charge or returning a Mortgage Payment to the Borrower for failing to pay the Late Charge, the Mortgagee must provide the Borrower with an advance written notice of the charge. ``` _Authority_: HUD Handbook 4000.1 III.A.2.a.ii — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # HUD Handbook 4000.1 III.A.2.b — Reporting to Consumer Reporting Agencies and the IRS **Register slug:** `hud-4000-1-iii-a-2-b` **Obligation count:** 1 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.b. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.b **Obligation ID:** `hud-4000-1-iii-a-2-b-full` **Operative duty (lender voice):** > Reporting to Consumer Reporting Agencies and the IRS: b. Reporting to Consumer Reporting Agencies and the IRS (03/31/2022) > The Mortgagee is responsible for: > • complying with applicable law and federal regulations relating to reporting to > consumer reporting agencies; and > • ensuring that all reported information is accurate. > The Mortgagee is also re… **Verbatim regulator text:** ``` b. Reporting to Consumer Reporting Agencies and the IRS (03/31/2022) The Mortgagee is responsible for: • complying with applicable law and federal regulations relating to reporting to consumer reporting agencies; and • ensuring that all reported information is accurate. The Mortgagee is also responsible for any required IRS reporting regarding acquisition of secured Property or cancellation of mortgage debt, in accordance with the Internal Revenue Code (IRC). ``` _Authority_: HUD Handbook 4000.1 III.A.2.b — Reporting to Consumer Reporting Agencies and the IRS _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # HUD Handbook 4000.1 III.A.2.c — Late Charges **Register slug:** `hud-4000-1-iii-a-2-c` **Obligation count:** 1 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.c. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.c **Obligation ID:** `hud-4000-1-iii-a-2-c-full` **Operative duty (lender voice):** > Late Charges: c. Late Charges (10/01/2025) > Late Charges are charges assessed if a Mortgage Payment is received more than 15 Days > after the due date. > The Mortgagee may consider a Borrower’s Mortgage Payment late if the payment is > received by the Mortgagee more than 15 Days after the due date, except for paymen… **Verbatim regulator text:** ``` c. Late Charges (10/01/2025) Late Charges are charges assessed if a Mortgage Payment is received more than 15 Days after the due date. The Mortgagee may consider a Borrower’s Mortgage Payment late if the payment is received by the Mortgagee more than 15 Days after the due date, except for payments received from Borrowers in accordance with a Trial Payment Plan Agreement. The Mortgagee may assess a late charge on the 17th Day of the month. For Mortgages assigned a case number on or after March 14, 2016, the Mortgagee may assess a Late Charge, not to exceed 4 percent of the overdue payment of P&I and in accordance with applicable state and federal laws. For Mortgages assigned a case number before March 14, 2016, the Mortgagee may assess a Late Charge calculated based on overdue PITI if permitted under the terms of the mortgage Note and under applicable state and federal laws. (A) Notifying the Borrower of the Late Charge Before collecting the Late Charge or returning a Mortgage Payment to the Borrower for failing to pay the Late Charge, the Mortgagee must provide the Borrower with an advance written notice of the charge. The Mortgagee must include in the advance notice the following information: • the due date of the monthly Mortgage Payment; • the amount of the regular monthly Mortgage Payment; • the date on which the Late Charge will be imposed; and • the amount of the Late Charge (or the full amount now due which consists of the regular monthly Mortgage Payment plus the Late Charge amount). (B) Application of Subsequent Payment to Unpaid Late Charges After advance notice has been sent to the Borrower, the Mortgagee may: • treat any subsequent payment that does not include the Late Charge in accordance with HUD’s Partial Payments for Mortgages in Default section; • deduct amounts due for Late Charges owed for a previous installment. (C) Default/Foreclosure Due to Unpaid Late Charges A Mortgage may be technically in Default by its terms if a Late Charge is not paid within 30 Days after it becomes due. However, the Mortgagee may not initiate foreclosure action when the only delinquency is due to: • unpaid Late Charges that are due on the account; and/or • unpaid monthly payments that remain unpaid because the Mortgagee did not comply with HUD’s Partial Payments for Mortgages in Default section. The Mortgagee must ensure that the Servicing File reflects any Late Charges assessed and includes any advance written notice of such charges sent to the Borrower. ``` _Authority_: HUD Handbook 4000.1 III.A.2.c.ii — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # HUD Handbook 4000.1 III.A.2.d — Partial Payments for Mortgages in Default **Register slug:** `hud-4000-1-iii-a-2-d` **Obligation count:** 1 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.d. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.d **Obligation ID:** `hud-4000-1-iii-a-2-d-full` **Operative duty (lender voice):** > Partial Payments for Mortgages in Default: d. Partial Payments for Mortgages in Default (10/01/2025) > i. Acceptance of Partial Payments > Unless subject to the exceptions in the Return of Partial Payments for Mortgage in > Default section, the Mortgagee must accept any Partial Payment and either: > • apply the payment to the Borrower’s account;… **Verbatim regulator text:** ``` d. Partial Payments for Mortgages in Default (10/01/2025) i. Acceptance of Partial Payments Unless subject to the exceptions in the Return of Partial Payments for Mortgage in Default section, the Mortgagee must accept any Partial Payment and either: • apply the payment to the Borrower’s account; or • identify the payment with the Borrower’s account and hold the payment in a suspense account. When a full monthly installment due under the Mortgage is accumulated, the Mortgagee must apply that amount to the Borrower’s account. ii. Application of Partial Payments Totaling a Full Monthly Payment When Partial Payments held for disposition total a full monthly Mortgage Payment, the Mortgagee must apply Borrower payments, in the following order, to: • MIPs due, if any; • charges for Ground Rents, taxes, special assessments, including any assessments related to a PACE obligation, flood insurance premiums, if required, and fire and other hazard insurance premiums; • interest on the Mortgage; • amortization of the principal of the Mortgage; and • Late Charges, provided that any amounts owed for Late Charges must be handled consistent with Truth in Lending Act (TILA) regulations. This application of Partial Payments as a full monthly installment advances the date of the oldest unpaid installment, but not the initial date of Default. When applying Partial Payments totaling a full monthly Mortgage Payment, the • report the appropriate Status Code in the Single Family Default Monitoring System (SFDMS); and • advance the Oldest Unpaid Installment (OUI) date one month. iii. Return of Partial Payments for Mortgages in Default If the Mortgage is in Default, the Mortgagee may return the Partial Payment to the Borrower with a letter of explanation only under the following circumstances: • when the payment represents less than half of the full amount due under the terms of the Mortgage, including Late Charges, at the time the payment is tendered; • when the payment is less than the amount agreed to in a Forbearance or Repayment Plan; • when the payment is less than the amount stated in an approved Trial Payment Plan (TPP) Agreement; • when the Property is occupied by a rent-paying tenant and the rents are not being applied to the Mortgage Payments; • when the first legal action to initiate foreclosure has been completed; or • when it is 14 Days or more after the Mortgagee has mailed the Borrower a statement of the full amount due, including Late Charges, which advises that it intends to refuse to accept future Partial Payments (see Application of Subsequent Payment to Unpaid Late Charges), and either of the following conditions have occurred: o four or more full monthly installments are due but unpaid; or o a delinquency of any amount, including Late Charges, has continued for at least six months since the account first became Delinquent. ``` _Authority_: HUD Handbook 4000.1 III.A.2.d.i — Acceptance of Partial Payments _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # HUD Handbook 4000.1 III.A.2.e — Lien Status **Register slug:** `hud-4000-1-iii-a-2-e` **Obligation count:** 1 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.e. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.e — Lien Status **Obligation ID:** `hud-4000-1-iii-a-2-e-preserve-first-lien-status` **Workflow phase:** servicing **Owner role:** compliance_officer **Cadence:** ongoing **Operative duty (lender voice):** > [LENDER] must preserve the first lien status of the FHA-insured > Mortgage. HUD will not pay a claim on a Mortgage that is not in first > priority position. **Compliance obligation:** > For every FHA-insured Mortgage in [LENDER]'s servicing portfolio, can [LENDER] evidence preservation of first lien status (no intervening senior lien, no inadvertent subordination, title monitoring per [LENDER]'s P&P)? **Verbatim regulator text:** ``` The Mortgagee must preserve the first lien status of the FHA-insured Mortgage. HUD will ``` _Authority_: HUD Handbook 4000.1 III.A.2.e — Lien Status _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z **Consequence of non-compliance:** Claim ineligibility — HUD will not pay a claim on a Mortgage that is not in first priority position. --- --- # HUD Handbook 4000.1 III.A.2.h — Loss Mitigation Program **Register slug:** `hud-4000-1-iii-a-2-h` **Obligation count:** 3 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.h. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.h.iii(A) — Eligibility to Participate in HUD Programs **Obligation ID:** `hud-4000-1-iii-a-2-h-borrower-eligibility-verification` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-evaluation **Operative duty (lender voice):** > Before offering any FHA Loss Mitigation Option, [LENDER] must verify > that the Borrowers are eligible to participate in HUD's Loss > Mitigation Program (no other FHA-insured real estate beyond the > stated exceptions; no FHA-claim-paid prior loan within the past three > years; no debarment/suspension/LDP for Loan Mod, Partial Claim, > Combination, or Payment Supplement; no unresolved delinquent Federal > Debt for Partial Claim / Combination / Payment Supplement). **Compliance obligation:** > For every FHA-insured Mortgage in Default for which [LENDER] offered a Loss Mitigation Option, can [LENDER] evidence Borrower-eligibility verification under III.A.2.h.iii(A)? **Verbatim regulator text:** ``` The Mortgagee must verify that the Borrowers are eligible to participate in HUD’s ``` _Authority_: HUD Handbook 4000.1 III.A.2.h.iii(A) — Eligibility to Participate in HUD Programs _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.h.iii(B) — 90-Day Review **Obligation ID:** `hud-4000-1-iii-a-2-h-90-day-evaluation` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-defaulted-loan **Operative duty (lender voice):** > 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 with the determination > of eligibility. **Compliance obligation:** > 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? **Verbatim regulator text:** ``` A Mortgagee is required to complete an evaluation of a Defaulted Mortgage for ``` _Authority_: HUD Handbook 4000.1 III.A.2.h.iii(B) — 90-Day Review _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.h.iv(B) — Evaluation of Borrower for Loss Mitigation Assistance, Standard **Obligation ID:** `hud-4000-1-iii-a-2-h-no-borrower-cash-contribution` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-offer **Operative duty (lender voice):** > [LENDER] must not condition the use of a Loss Mitigation Option on > the receipt of a Borrower's cash contribution or a Borrower's payment > of fees or charges. **Compliance obligation:** > For every FHA Loss Mitigation Option offered, can [LENDER] evidence that the offer was not conditioned on a Borrower cash contribution or on Borrower payment of fees or charges? **Verbatim regulator text:** ``` The Mortgagee must not condition the use of a Loss Mitigation Option on the receipt ``` _Authority_: HUD Handbook 4000.1 III.A.2.h.iv(B) — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # HUD Handbook 4000.1 III.A.2.i — Loss Mitigation Home Retention Options **Register slug:** `hud-4000-1-iii-a-2-i` **Obligation count:** 3 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.i. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.i.ii(A)(2) — Repayment Plans Standard **Obligation ID:** `hud-4000-1-iii-a-2-i-repayment-plan-affordability-review` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-evaluation **Operative duty (lender voice):** > [LENDER] must review the Borrower for a Repayment Plan if the Borrower > affirms the monthly installment amount required under the terms of > the Repayment Plan Agreement is affordable. **Compliance obligation:** > For every Borrower who affirmed affordability under a proposed Repayment Plan Agreement, can [LENDER] evidence a documented Repayment Plan review? **Verbatim regulator text:** ``` The Mortgagee must review the Borrower for a Repayment Plan if the Borrower ``` _Authority_: HUD Handbook 4000.1 III.A.2.i.ii(A)(2) — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.i.ii(A)(2) — Repayment Plans Standard, Term Cap **Obligation ID:** `hud-4000-1-iii-a-2-i-repayment-plan-24-month-cap` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-workout **Operative duty (lender voice):** > [LENDER] must ensure the term of the Repayment Plan does not exceed > 24 months, and must require the delinquency to be repaid in equal > monthly installments, in addition to the Mortgage Payments, over the > term of the Repayment Plan. **Compliance obligation:** > For every Repayment Plan Agreement, can [LENDER] evidence that the plan term does not exceed 24 months and that the delinquency is repaid in equal monthly installments in addition to the Mortgage Payments over the term? **Verbatim regulator text:** ``` • ensure the term of the Repayment Plan does not exceed 24 months; and ``` _Authority_: HUD Handbook 4000.1 III.A.2.i.ii(A)(2) — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.i.ii(A)(4) — Repayment Plan Agreement **Obligation ID:** `hud-4000-1-iii-a-2-i-repayment-plan-agreement-15-day-delivery` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-workout **Operative duty (lender voice):** > [LENDER] must provide the Borrower with the Repayment Plan Agreement > at least 15 Days before the date the first installment is due. The > Borrower is not required to sign and return the Repayment Plan > Agreement. **Compliance obligation:** > For every Repayment Plan Agreement, can [LENDER] evidence delivery to the Borrower at least 15 Days before the first installment due date? **Verbatim regulator text:** ``` The Mortgagee must provide the Borrower with the Repayment Plan Agreement ``` _Authority_: HUD Handbook 4000.1 III.A.2.i.ii(A)(4) — Repayment Plan Agreement _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # HUD Handbook 4000.1 III.A.2.j — Home Disposition Options **Register slug:** `hud-4000-1-iii-a-2-j` **Obligation count:** 1 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.j. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.j **Obligation ID:** `hud-4000-1-iii-a-2-j-full` **Operative duty (lender voice):** > Home Disposition Options: j. Home Disposition Options (12/30/2025) > The Mortgagee must review Borrowers for Home Disposition Options who are unable to > sustain the Mortgage with the assistance of a Loss Mitigation Home Retention Option. > > > The Home Disposition Options include: > • Pre-Foreclosure Sale (PFS); and > • Deed-in-L… **Verbatim regulator text:** ``` j. Home Disposition Options (12/30/2025) The Mortgagee must review Borrowers for Home Disposition Options who are unable to sustain the Mortgage with the assistance of a Loss Mitigation Home Retention Option. The Home Disposition Options include: • Pre-Foreclosure Sale (PFS); and • Deed-in-Lieu (DIL). The Mortgagee must notify the Borrower that they may be able to avoid foreclosure by selling their home with a traditional sale or a PFS Option. If the Borrower advises that their financial situation has improved during the PFS or DIL process and wants to retain the Property, the Mortgagee must review the Borrower for one additional Loss Mitigation Home Retention Option. ii. Pre-Foreclosure Sales A Pre-Foreclosure Sale (PFS), also known as a Short Sale, refers to the sale of real estate that generates proceeds that are less than the amount owed on the Property and in which the lien holders agree to release their liens and forgive the deficiency balance on the real estate. There are two PFS Options: • Standard PFS; and • PFS for Servicemembers. (B) Requirements for all PFS Options (1) PFS Outreach Requirements (a) Form HUD-90035, Information Sheet: Pre-foreclosure Sale Procedure When the Mortgagee has identified a Borrower as a qualified candidate for a PFS or a Borrower has expressed an interest in participating, the Mortgagee must provide to the Borrower, electronically or by mail, form HUD-90035, Information Sheet: Pre-foreclosure Sale Procedure, adding its toll-free or collect telephone number to the form. (b) Disclosure Requirements for PFS Transactions Prior to approving the Borrower for the PFS Option, the Mortgagee must notify the Borrower of the following in writing: • The Mortgage must be three or more full monthly payment due and unpaid (61 Days or more past due) on the date the Mortgagee approves the Borrower’s participation in a Standard PFS. • On the date the PFS for Servicemembers transaction closes, the Mortgage must be in Default status (minimum 31 Days Delinquent). • Until the PFS transaction has closed, the Borrower must maintain the Property in “ready to show” condition, make basic property repairs, and perform all normal property maintenance activities (e.g., interior cleaning, lawn maintenance, etc.). ``` _Authority_: HUD Handbook 4000.1 III.A.2.j.i — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # HUD Handbook 4000.1 III.A.2.k — Loss Mitigation Incentives and Title Reimbursement **Register slug:** `hud-4000-1-iii-a-2-k` **Obligation count:** 1 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.k. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.k **Obligation ID:** `hud-4000-1-iii-a-2-k-full` **Operative duty (lender voice):** > Servicing And Loss Mitigation: • the correct and complete claim is submitted to HUD within 60 Days of the > execution date of the Permanent Home Retention Option or Home Disposition > The Mortgagee may submit a claim for an incentive for the successful completion of the > approved Loss Mitigation Options, including for Loss Mitigati… **Verbatim regulator text:** ``` • the correct and complete claim is submitted to HUD within 60 Days of the execution date of the Permanent Home Retention Option or Home Disposition The Mortgagee may submit a claim for an incentive for the successful completion of the approved Loss Mitigation Options, including for Loss Mitigation Options associated with a PDMDA (also referred to as Disaster options), listed below. Loss Mitigation Option Mortgagee Incentive Partial Claim $500 for a Partial Claim Loan Modification (including OWL) $750 for a Loan Modification *Additionally, the Mortgagee is eligible to be reimbursed up to $250 for fees associated with title search, title policy, and/or recordation. $1,750 PFS $1,000 DIL $250 ii. Reimbursement for Loan Modification Title Search and Recordation The Mortgagee may submit a claim to be reimbursed up to $250 for fees associated with title search, title policy, and/or recordation associated for an executed Loan Modification where: • three or more full monthly payments are Delinquent (i.e., 61 Days or more Delinquent) when the Standalone Loan Modification, Combination Loan Modification and Partial Claim, or OWL is approved; • the Loss Mitigation Option was completed in accordance with FHA requirements; • the correct and complete claim for $250 is submitted to HUD within 120 Days of the execution date of the Loan Modification, or Loan Modification as part of a Combination Loan Modification and Partial Claim. The claim for reimbursement up to $250 for fees associated with title search, title policy, and/or recordation may be included with the claim for a Mortgagee incentive. Mortgagees that do not qualify for an incentive may still submit a claim for this l. Presidentially-Declared Major Disaster Areas (10/01/2025) i. Disaster Declarations Under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, the President has authority to declare a major disaster for any area which has been affected by damage of sufficient severity and magnitude to warrant major disaster assistance. Disaster declarations and information regarding available federal assistance for each ``` _Authority_: HUD Handbook 4000.1 III.A.2.k.i — Loss Mitigation Incentives _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # HUD Handbook 4000.1 III.A.2.l — Presidentially-Declared Major Disaster Areas **Register slug:** `hud-4000-1-iii-a-2-l` **Obligation count:** 3 ## Register description HUD Single-Family Housing Policy Handbook 4000.1, Section III.A.2.l. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD Handbook 4000.1 III.A.2.l.i — Disaster Declarations **Obligation ID:** `hud-4000-1-iii-a-2-l-implement-pdmda-procedures` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-disaster-declaration **Operative duty (lender voice):** > Whenever the President declares a major disaster, [LENDER] must > implement the procedures set forth in this section for each > designated area that is eligible for federal disaster assistance, > designated for public assistance, individual assistance, or both, > unless otherwise specified. **Compliance obligation:** > For every Presidentially-declared major disaster affecting FHA-insured Mortgages in [LENDER]'s portfolio, can [LENDER] evidence implementation of the PDMDA procedures (disaster loss-mit assistance, moratorium notice, monitoring, and disaster-option offers) for each designated area? **Verbatim regulator text:** ``` Whenever the President declares a major disaster, the Mortgagee must implement the ``` _Authority_: HUD Handbook 4000.1 III.A.2.l.i — Disaster Declarations _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.l.ii(A) — PDMDA Moratorium and Outreach **Obligation ID:** `hud-4000-1-iii-a-2-l-contact-borrower-in-pdmda` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-pdmda-loan **Operative duty (lender voice):** > [LENDER] must attempt to contact Borrowers whose Property is located > in a PDMDA to notify the Borrower that disaster loss mitigation > assistance is available. **Compliance obligation:** > For every FHA-insured Mortgage with a Property located in a PDMDA, can [LENDER] evidence an attempt to contact the Borrower to notify them that disaster loss mitigation assistance is available? **Verbatim regulator text:** ``` Mortgagees must attempt to contact Borrowers whose Property is located in a ``` _Authority_: HUD Handbook 4000.1 III.A.2.l.ii(A) — Standard _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- #### HUD Handbook 4000.1 III.A.2.l.ii(C) — Hazard or Flood Insurance Settlement **Obligation ID:** `hud-4000-1-iii-a-2-l-no-foreclosure-that-jeopardizes-insurance-recovery` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-pdmda-loan-with-insurance-claim **Operative duty (lender voice):** > [LENDER] must take no action to initiate or complete foreclosure > proceedings, after expiration of a disaster-related foreclosure > moratorium, if such action will jeopardize the full recovery of a > hazard or flood insurance settlement. **Compliance obligation:** > For every PDMDA-affected FHA-insured Mortgage where a hazard or flood insurance settlement is pending, can [LENDER] evidence that no action was taken to initiate or complete foreclosure that would jeopardize the full recovery of that settlement? **Verbatim regulator text:** ``` The Mortgagee must take no action to initiate or complete foreclosure proceedings, ``` _Authority_: HUD Handbook 4000.1 III.A.2.l.ii(C) — Hazard or Flood Insurance Settlement _Source_: _Snapshot_: `8c03836f77f317e1` _Fetched_: 2026-05-23T00:28:40Z --- --- # 24 CFR §203.500 — Mortgage servicing generally **Register slug:** `fha-24cfr-203.500` **Obligation count:** 3 ## Register description 24 CFR §203.500 establishes the general FHA single-family servicing framework under Part 203 Subpart C. ## Obligations #### 24 CFR §203.500 — Mandatory compliance with Subpart C servicing practices **Obligation ID:** `fha-24cfr-203.500-subpart-c-compliance-required` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-fha-serviced-loan **Operative duty (lender voice):** > [LENDER], as an FHA-approved mortgagee servicing FHA-insured mortgages, > must comply with the servicing practices specified in 24 CFR Part 203 > Subpart C; failure to comply is not a basis for denial of insurance > benefits but is cause for imposition of a civil money penalty > (including a penalty under §30.35(c)(2)) or withdrawal of HUD's > approval of [LENDER]. [LENDER] shall not commence foreclosure or > acquire title until the Subpart C requirements have been followed. **Compliance obligation:** > Can [LENDER] evidence (i) that it follows the Subpart C FHA single-family servicing practices on every FHA-insured loan it services, and (ii) that no foreclosure was commenced and no title was acquired before the applicable §203.500 Subpart C requirements were satisfied? **Verbatim regulator text:** ``` This subpart identifies servicing practices of lending institutions that HUD considers acceptable for mortgages insured by HUD. Failure to comply with this subpart shall not be a basis for denial of insurance benefits, but failure to comply will be cause for imposition of a civil money penalty, including a penalty under § 30.35(c)(2) , or withdrawal of HUD's approval of a mortgagee . It is the intent of the Department that no mortgagee shall commence foreclosure or acquire title to a property until the requirements of this subpart have been followed. ``` _Authority_: 24 CFR §203.500 _Source_: _Snapshot_: `32afd0af85c1c567` _Fetched_: 2026-05-22T18:52:44Z **Consequence of non-compliance:** civil money penalty (including §30.35(c)(2)) or withdrawal of HUD mortgagee approval --- #### 24 CFR §203.500 — No foreclosure / title acquisition until Subpart C followed **Obligation ID:** `fha-24cfr-203.500-foreclosure-and-title-precondition` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-fha-foreclosure-or-title-acquisition **Operative duty (lender voice):** > [LENDER], as an FHA-approved mortgagee servicing FHA-insured > mortgages, shall not commence foreclosure or acquire title to a > property until the requirements of 24 CFR Part 203 Subpart C have > been followed. This is the Department of HUD's stated intent in > §203.500 and operates as a procedural precondition on foreclosure / > title-acquisition activity. **Compliance obligation:** > For every FHA-insured loan [LENDER] services where foreclosure has been commenced or title has been acquired, can [LENDER] evidence that the applicable Part 203 Subpart C servicing-practice requirements were completed before foreclosure was commenced or title acquired? **Verbatim regulator text:** ``` It is the intent of the Department that no mortgagee shall commence foreclosure or acquire title to a property until the requirements of this subpart have been followed. ``` _Authority_: 24 CFR §203.500 _Source_: _Snapshot_: `32afd0af85c1c567` _Fetched_: 2026-05-22T18:52:44Z --- #### 24 CFR §203.500 — Consequence of noncompliance: civil money penalty / mortgagee-approval withdrawal **Obligation ID:** `fha-24cfr-203.500-civil-money-penalty-consequence` **Workflow phase:** servicing **Owner role:** compliance_officer **Cadence:** ongoing **Operative duty (lender voice):** > Failure by [LENDER] to comply with FHA Part 203 Subpart C servicing > practices is not a basis for denial of insurance benefits but is > cause for imposition of a civil money penalty (including a penalty > under §30.35(c)(2)) or withdrawal of HUD's approval of [LENDER] as > an FHA mortgagee. [LENDER]'s compliance-management framework must > treat Subpart C noncompliance as a HUD-enforcement-tier finding > rather than merely an insurance-benefit risk. **Compliance obligation:** > Can [LENDER] evidence that its compliance-management framework treats §203.500 Subpart C noncompliance as a HUD-enforcement-tier exposure (civil money penalty under §30.35(c)(2) or mortgagee-approval withdrawal), and that findings are tracked, root-caused, and remediated accordingly? **Verbatim regulator text:** ``` Failure to comply with this subpart shall not be a basis for denial of insurance benefits, but failure to comply will be cause for imposition of a civil money penalty, including a penalty under § 30.35(c)(2) , or withdrawal of HUD's approval of a mortgagee . ``` _Authority_: 24 CFR §203.500 _Source_: _Snapshot_: `32afd0af85c1c567` _Fetched_: 2026-05-22T18:52:44Z **Consequence of non-compliance:** civil money penalty (including §30.35(c)(2)) or withdrawal of HUD mortgagee approval --- --- # 24 CFR §203.604 — Contact with the mortgagor **Register slug:** `fha-24cfr-203.604` **Obligation count:** 7 ## Register description 24 CFR §203.604 requires the FHA-approved mortgagee to conduct (or make a reasonable effort to arrange) a meeting with the delinquent mortgagor before three full monthly installments are unpaid and at least 30 days before foreclosure is commenced. ## Obligations #### 24 CFR §203.604(a) **Obligation ID:** `fha-24cfr-203.604-a` **Operative duty (lender voice):** > (a): (a) For mortgages insured pursuant to this part, except those mortgages insured on Indian Land pursuant to section 248 of the National Housing Act : (1) The mortgagee must conduct a meeting with the mortgagor, or make a reasonable effort to arrange such a meeting, before three full monthly installme… **Verbatim regulator text:** ``` (a) For mortgages insured pursuant to this part, except those mortgages insured on Indian Land pursuant to section 248 of the National Housing Act : (1) The mortgagee must conduct a meeting with the mortgagor, or make a reasonable effort to arrange such a meeting, before three full monthly installments due on the mortgage are unpaid and at least 30 days before foreclosure is commenced, or at least 30 days before assignment is requested if the mortgage is insured on Hawaiian homelands pursuant to section 247 of the National Housing Act . The meeting with the mortgagor must be conducted in a manner as determined by the Secretary . ``` _Authority_: 24 CFR §203.604(a)(1) _Source_: _Snapshot_: `a253b3a4bb1532fd` _Fetched_: 2026-05-22T18:52:44Z --- #### 24 CFR §203.604(i) **Obligation ID:** `fha-24cfr-203.604-i` **Operative duty (lender voice):** > (i): (i) If default occurs on a repayment plan, the mortgagee must conduct a meeting with the mortgagor, or make a reasonable effort to arrange such a meeting, no later than 30 days after such default . (ii) [Reserved] (2) A meeting with the mortgagor is not required if: **Verbatim regulator text:** ``` (i) If default occurs on a repayment plan, the mortgagee must conduct a meeting with the mortgagor, or make a reasonable effort to arrange such a meeting, no later than 30 days after such default . (ii) [Reserved] (2) A meeting with the mortgagor is not required if: ``` _Authority_: 24 CFR §203.604(a)(1) _Source_: _Snapshot_: `a253b3a4bb1532fd` _Fetched_: 2026-05-22T18:52:44Z --- #### 24 CFR §203.604(i) **Obligation ID:** `fha-24cfr-203.604-i` **Operative duty (lender voice):** > (i): (i) The mortgagor has clearly indicated that they will not cooperate in the meeting; (ii) The mortgagor is on a repayment plan to bring the mortgage current, and the mortgagor is meeting the terms of the repayment plan; or (iii) A reasonable effort to arrange a meeting with the mortgagor is unsucces… **Verbatim regulator text:** ``` (i) The mortgagor has clearly indicated that they will not cooperate in the meeting; (ii) The mortgagor is on a repayment plan to bring the mortgage current, and the mortgagor is meeting the terms of the repayment plan; or (iii) A reasonable effort to arrange a meeting with the mortgagor is unsuccessful. (3) A reasonable effort to arrange a meeting with the mortgagor shall consist of, at a minimum, two verifiable attempts to contact the mortgagor utilizing methods determined by the Secretary . ``` _Authority_: 24 CFR §203.604(a)(1) _Source_: _Snapshot_: `a253b3a4bb1532fd` _Fetched_: 2026-05-22T18:52:44Z --- #### 24 CFR §203.604(b) **Obligation ID:** `fha-24cfr-203.604-b` **Operative duty (lender voice):** > (b): (b) For mortgages insured on Indian Land pursuant to section 248 of the National Housing Act : (1) The mortgagee must conduct a face-to-face meeting with the mortgagor, or make a reasonable effort to arrange such a meeting, before three full monthly installments due on the mortgage are unpaid and at… **Verbatim regulator text:** ``` (b) For mortgages insured on Indian Land pursuant to section 248 of the National Housing Act : (1) The mortgagee must conduct a face-to-face meeting with the mortgagor, or make a reasonable effort to arrange such a meeting, before three full monthly installments due on the mortgage are unpaid and at least 30 days before assignment is requested. ``` _Authority_: 24 CFR §203.604(a)(1) _Source_: _Snapshot_: `a253b3a4bb1532fd` _Fetched_: 2026-05-22T18:52:44Z --- #### 24 CFR §203.604(i) **Obligation ID:** `fha-24cfr-203.604-i` **Operative duty (lender voice):** > (i): (i) If default occurs on a repayment plan arranged other than during a face-to-face meeting, the mortgagee must have a face-to-face meeting with the mortgagor, or make a reasonable effort to arrange such a meeting, within 30 days after default or at least 30 days before assignment is requested. (ii)… **Verbatim regulator text:** ``` (i) If default occurs on a repayment plan arranged other than during a face-to-face meeting, the mortgagee must have a face-to-face meeting with the mortgagor, or make a reasonable effort to arrange such a meeting, within 30 days after default or at least 30 days before assignment is requested. (ii) [Reserved] (2) A face-to-face meeting is not required if: ``` _Authority_: 24 CFR §203.604(a)(1) _Source_: _Snapshot_: `a253b3a4bb1532fd` _Fetched_: 2026-05-22T18:52:44Z --- #### 24 CFR §203.604(i) **Obligation ID:** `fha-24cfr-203.604-i` **Operative duty (lender voice):** > (i): (i) The mortgagor has clearly indicated that they will not cooperate in the meeting; (ii) The mortgagor is on a repayment plan to bring the mortgage current, and the mortgagor is meeting the terms of the repayment plan; or (iii) A reasonable effort to arrange a meeting with the mortgagor is unsucces… **Verbatim regulator text:** ``` (i) The mortgagor has clearly indicated that they will not cooperate in the meeting; (ii) The mortgagor is on a repayment plan to bring the mortgage current, and the mortgagor is meeting the terms of the repayment plan; or (iii) A reasonable effort to arrange a meeting with the mortgagor is unsuccessful. (3) A reasonable effort to arrange a face-to-face meeting with the mortgagor shall include at a minimum, one letter sent to the mortgagor certified by the Postal Service as having been dispatched and at least one trip to see the mortgagor at the mortgaged property. In addition, the mortgagee must document that it has made at least one telephone call to the mortgagor for the purpose of trying to arrange a face-to-face meeting. The mortgagee may appoint an agent to perform its responsibilities under paragraph (b) of this section. (4) The mortgagee must also: ``` _Authority_: 24 CFR §203.604(a)(1) _Source_: _Snapshot_: `a253b3a4bb1532fd` _Fetched_: 2026-05-22T18:52:44Z --- #### 24 CFR §203.604(i) **Obligation ID:** `fha-24cfr-203.604-i` **Operative duty (lender voice):** > (i): (i) Inform the mortgagor that HUD will make information regarding the status and payment history of the mortgagor's loan available to credit bureaus and prospective creditors; (ii) Inform the mortgagor of other available assistance, if any; and (iii) Inform the mortgagor of the names and addresses o… **Verbatim regulator text:** ``` (i) Inform the mortgagor that HUD will make information regarding the status and payment history of the mortgagor's loan available to credit bureaus and prospective creditors; (ii) Inform the mortgagor of other available assistance, if any; and (iii) Inform the mortgagor of the names and addresses of HUD officials to whom further communications may be addressed. [ 89 FR 63098 , Aug. 2, 2024] National Housing Act CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel Table of Authorities Accessibility About LII Contact us Advertise here Help Terms of use Privacy ``` _Authority_: 24 CFR §203.604(a)(1) _Source_: _Snapshot_: `a253b3a4bb1532fd` _Fetched_: 2026-05-22T18:52:44Z --- --- # HUD Mortgagee Letter 2024-02 — Payment Supplement **Register slug:** `hud-ml-2024-02` **Obligation count:** 3 ## Register description HUD ML 2024-02 establishes the Payment Supplement loss mitigation option, combining a standalone Partial Claim to bring the Mortgage current with a new Monthly Principal Reduction (MoPR) for a three-year period, and establishes related servicing-transfer responsibilities and SFDMS reporting requirements for Mortgages in a Payment Supplement Period. ## Obligations #### HUD ML 2024-02 — Laws and Requirements Applicable to Mortgage Servicing (III.A.1.a.ii(A)) **Obligation ID:** `hud-ml-2024-02-servicing-laws-compliance` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** continuous **Operative duty (lender voice):** > [LENDER], as an FHA-approved Mortgagee servicing FHA-insured Mortgages, > must comply with all laws, rules, and requirements applicable to mortgage > servicing, including full compliance with the applicable requirements > under the purview of the Consumer Financial Protection Bureau (CFPB) > (including RESPA and TILA), and, if applicable, Ginnie Mae's > mortgage-backed securities requirements. FHA requirements that are more > stringent or restrictive than applicable law (as set forth in Handbook > 4000.1) override the lesser standard. **Compliance obligation:** > Can [LENDER] evidence that its FHA mortgage-servicing program operates in full compliance with CFPB-administered requirements (RESPA, TILA), Ginnie Mae MBS requirements where applicable, and the more-stringent FHA requirements in Handbook 4000.1? **Verbatim regulator text:** ``` Mortgagees must comply with all laws, rules, and requirements applicable to mortgage servicing, including full compliance with the applicable requirements under the purview of the Consumer Financial Protection Bureau (CFPB), including the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), and, if applicable, Ginnie Mae’s mortgage-backed securities requirements. ``` _Authority_: HUD ML 2024-02 — III.A.1.a.ii(A) _Source_: _Snapshot_: `cc5f3927701cb91d` _Fetched_: 2026-05-22T19:54:43Z --- #### HUD ML 2024-02 — SFDMS Default Reporting: Types of Mortgages to Report (III.A.2.h.ii(B)(1)) **Obligation ID:** `hud-ml-2024-02-sfdms-payment-supplement-reporting` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** monthly **Operative duty (lender voice):** > Each month, [LENDER] must report Default servicing activities through > HUD's Single Family Default Monitoring System (SFDMS) for all Mortgages > that are 30, 60, and 90 Days or more in Default, and for all Mortgages > in a Payment Supplement Period, as of the last Day of the month. **Compliance obligation:** > For each monthly SFDMS reporting cycle, can [LENDER] demonstrate that it reported Default servicing activities for every FHA-insured Mortgage that was 30, 60, or 90+ Days delinquent, and for every Mortgage in a Payment Supplement Period, as of the last Day of the month? **Verbatim regulator text:** ``` Each month, the Mortgagee must report 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. ``` _Authority_: HUD ML 2024-02 — III.A.2.h.ii(B)(1) _Source_: _Snapshot_: `cc5f3927701cb91d` _Fetched_: 2026-05-22T19:54:43Z --- #### HUD ML 2024-02 — Responsibility during Transfers of Servicing Rights (III.A.1.b.i(B)) **Obligation ID:** `hud-ml-2024-02-servicing-transfer-payment-supplement` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-servicing-transfer **Operative duty (lender voice):** > Where [LENDER] is the Transferee Servicing Mortgagee on a Transfer Date, > [LENDER] must ensure transfer of any outstanding Payment Supplement > Account and associated servicing records, and assume responsibility for > all servicing actions associated with the Payment Supplement — including > accounting of funds held in the Payment Supplement Account, administration > of the Borrower's Payment Supplement, obtaining the complete Payment > Supplement files, and obtaining any outstanding funds in the Payment > Supplement Account. **Compliance obligation:** > For every servicing-rights transfer involving an FHA-insured Mortgage with an active Payment Supplement, can [LENDER] (as Transferee Servicing Mortgagee) evidence transfer of the Payment Supplement Account, associated servicing records, complete Payment Supplement files, and outstanding Payment Supplement Account funds on or about the Transfer Date? **Verbatim regulator text:** ``` The Transferee Servicing Mortgagee must also ensure transfer of any outstanding Payment Supplement Account and associated servicing records. ``` _Authority_: HUD ML 2024-02 — III.A.1.b.i(B) _Source_: _Snapshot_: `cc5f3927701cb91d` _Fetched_: 2026-05-22T19:54:43Z --- --- # HUD Mortgagee Letter 2024-08 **Register slug:** `hud-ml-2024-08` **Obligation count:** 2 ## Register description HUD Mortgagee Letter 2024-08. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2024-08 — FHA-Insured Forward Mortgages: Extension of Foreclosure Moratorium for Maui County, Hawaii **Obligation ID:** `hud-ml-2024-08-forward-mortgage-moratorium` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-affected-loan **Operative duty (lender voice):** > For FHA-insured Single Family forward mortgages secured by Properties > located in Maui County, Hawaii, [LENDER] must observe the extended > foreclosure moratorium through August 4, 2024, applying both to the > initiation of new foreclosures and to the completion of foreclosures > already in process; first-legal-action deadlines and Reasonable Diligence > Time Frames are extended by 180 Days from August 4, 2024. **Compliance obligation:** > For every FHA-insured forward Mortgage with subject Property in Maui County, Hawaii, can [LENDER] evidence that no foreclosure initiation or completion occurred during the moratorium period (through August 4, 2024) and that first-legal-action / Reasonable Diligence Time Frame deadlines were extended by 180 Days from August 4, 2024? **Verbatim regulator text:** ``` Properties located in Maui County, Hawaii and secured by FHA-insured Single Family forward mortgages are subject to an extended foreclosure moratorium through August 4, 2024. The moratorium applies to the initiation of foreclosures and to the completion of foreclosures in process. Deadlines for the first legal action and Reasonable Diligence Time Frame are extended by 180 Days from August 4, 2024. ``` _Authority_: HUD ML 2024-08 — FHA-Insured Forward Mortgages _Source_: _Snapshot_: `aaaa0ffbdea217b5` _Fetched_: 2026-05-22T19:54:44Z --- #### HUD ML 2024-08 — HECM Foreclosure Moratorium for Maui County, Hawaii **Obligation ID:** `hud-ml-2024-08-hecm-moratorium` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-affected-loan **Operative duty (lender voice):** > For FHA-insured HECMs secured by Properties located in Maui County, > Hawaii, [LENDER] must observe a moratorium on foreclosures through August > 4, 2024 — but only where the HECM is Due and Payable for reasons other > than the death of the last remaining Borrower and is not subject to a > Deferral Period — applying to both the initiation of foreclosures and > foreclosures already in process. **Compliance obligation:** > For every FHA-insured HECM with subject Property in Maui County, Hawaii that became Due and Payable for reasons other than death of the last remaining Borrower (and was not subject to a Deferral Period), can [LENDER] evidence that no foreclosure initiation or completion occurred during the moratorium period (through August 4, 2024)? **Verbatim regulator text:** ``` The Mortgagee must observe a moratorium on foreclosures of FHA-insured HECMs secured by Properties located in Maui County, Hawaii through August 4, 2024. ``` _Authority_: HUD ML 2024-08 — HECM Foreclosure Moratorium _Source_: _Snapshot_: `aaaa0ffbdea217b5` _Fetched_: 2026-05-22T19:54:44Z --- --- # HUD Mortgagee Letter 2024-15 **Register slug:** `hud-ml-2024-15` **Obligation count:** 2 ## Register description HUD Mortgagee Letter 2024-15. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2024-15 — FHA-Insured Forward Mortgages: Extension of Foreclosure Moratorium for Maui County, Hawaii **Obligation ID:** `hud-ml-2024-15-forward-mortgage-moratorium` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-affected-loan **Operative duty (lender voice):** > For FHA-insured Single Family forward mortgages secured by Properties > located in Maui County, Hawaii, [LENDER] must observe the extended > foreclosure moratorium through January 1, 2025, applying both to the > initiation of new foreclosures and to the completion of foreclosures > already in process; first-legal-action deadlines and Reasonable Diligence > Time Frames are extended by 180 Days from January 1, 2025. **Compliance obligation:** > For every FHA-insured forward Mortgage with subject Property in Maui County, Hawaii, can [LENDER] evidence that no foreclosure initiation or completion occurred during the moratorium period (through January 1, 2025) and that first-legal-action / Reasonable Diligence Time Frame deadlines were extended by 180 Days from January 1, 2025? **Verbatim regulator text:** ``` Properties located in Maui County, Hawaii and secured by FHA-insured Single Family forward mortgages are subject to an extended foreclosure moratorium through January 1, 2025. The moratorium applies to the initiation of foreclosures and to the completion of foreclosures in process. Deadlines for the first legal action and Reasonable Diligence Time Frame are extended by 180 Days from January 1, 2025. ``` _Authority_: HUD ML 2024-15 — FHA-Insured Forward Mortgages _Source_: _Snapshot_: `c561f8c5edb51360` _Fetched_: 2026-05-22T19:54:47Z --- #### HUD ML 2024-15 — HECM Foreclosure Moratorium for Maui County, Hawaii **Obligation ID:** `hud-ml-2024-15-hecm-moratorium` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-affected-loan **Operative duty (lender voice):** > For FHA-insured HECMs secured by Properties located in Maui County, > Hawaii, [LENDER] must observe a moratorium on foreclosures through > January 1, 2025 — but only where the HECM is Due and Payable for reasons > other than the death of the last remaining Borrower and is not subject > to a Deferral Period — applying to both the initiation of foreclosures > and foreclosures already in process. **Compliance obligation:** > For every FHA-insured HECM with subject Property in Maui County, Hawaii that became Due and Payable for reasons other than death of the last remaining Borrower (and was not subject to a Deferral Period), can [LENDER] evidence that no foreclosure initiation or completion occurred during the moratorium period (through January 1, 2025)? **Verbatim regulator text:** ``` The Mortgagee must observe a moratorium on foreclosures of FHA-insured HECMs secured by Properties located in Maui County, Hawaii through January 1, 2025. ``` _Authority_: HUD ML 2024-15 — HECM Foreclosure Moratorium _Source_: _Snapshot_: `c561f8c5edb51360` _Fetched_: 2026-05-22T19:54:47Z --- --- # HUD Mortgagee Letter 2024-17 **Register slug:** `hud-ml-2024-17` **Obligation count:** 2 ## Register description HUD Mortgagee Letter 2024-17. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2024-17 — Optional Interim Exception for Nonjudicial Foreclosures (b) Standard **Obligation ID:** `hud-ml-2024-17-sip-submission-standard` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-foreclosure **Operative duty (lender voice):** > Where [LENDER] elects to use this optional interim procedure to request > release of a subordinate Secretary-held lien following a nonjudicial > foreclosure sale, [LENDER] may only do so where (i) the nonjudicial > foreclosure sale resulted in no Surplus Funds and (ii) nonjudicial is > the Preferred Method of Foreclosure for the state. If the Property is > subject to federal non-Secretary-held liens, [LENDER] must comply with > applicable law for those federal liens, including proceeding with a > judicial foreclosure if required. **Compliance obligation:** > For every request [LENDER] submitted under ML 2024-17's optional interim procedure to release a subordinate Secretary-held lien, can [LENDER] evidence (i) that the nonjudicial foreclosure sale produced no Surplus Funds, (ii) that nonjudicial was the state's Preferred Method of Foreclosure, and (iii) that compliance with applicable law was maintained for any federal non-Secretary-held liens? **Verbatim regulator text:** ``` Mortgagees may only request release of a subordinate Secretary-held lien where a nonjudicial foreclosure sale resulted in no Surplus Funds where nonjudicial is the Preferred Method of Foreclosure. ``` _Authority_: HUD ML 2024-17 — Optional Interim Exception (b) Standard _Source_: _Snapshot_: `9837ce0b1b5cee8c` _Fetched_: 2026-05-22T19:54:51Z --- #### HUD ML 2024-17 — Optional Interim Exception (c) Required Documentation **Obligation ID:** `hud-ml-2024-17-claim-file-retention` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-foreclosure **Operative duty (lender voice):** > Where [LENDER] uses the ML 2024-17 optional interim procedure to request > release of a subordinate Secretary-held lien, [LENDER] must retain > documentation of the information submitted to HUD through SIP in the > claim file for the affected Mortgage. **Compliance obligation:** > For every Mortgage where [LENDER] requested release of a subordinate Secretary-held lien via SIP under ML 2024-17, can [LENDER] produce from the claim file documentation of the information submitted to HUD through SIP (FHA Case Number, sale date, bid amounts, foreclosure attorney details, winning bidder type, method of foreclosure, no-Surplus-Funds certification)? **Verbatim regulator text:** ``` The Mortgagee must retain documentation of the information submitted to HUD through SIP in their claim file. ``` _Authority_: HUD ML 2024-17 — Optional Interim Exception (c) Required Documentation _Source_: _Snapshot_: `9837ce0b1b5cee8c` _Fetched_: 2026-05-22T19:54:51Z --- --- # HUD Mortgagee Letter 2024-24 **Register slug:** `hud-ml-2024-24` **Obligation count:** 2 ## Register description HUD Mortgagee Letter 2024-24. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2024-24 — Alternative Interim Procedures: Early Default Intervention Interview Standard (III.A.2.h.xii(A)) **Obligation ID:** `hud-ml-2024-24-default-interview-by-61st-day` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-delinquent-loan **Operative duty (lender voice):** > Under the alternative interim procedures (January 1, 2025 through June > 30, 2025), [LENDER] must have an interview with the Borrower — or make > a reasonable effort to arrange an interview — no later than the 61st Day > of delinquency, unless the Borrower is exempt; [LENDER] may conduct the > interview face-to-face or using alternative communication methods > (phone, email, video calling services, or other conferencing technology). **Compliance obligation:** > For every FHA-insured Mortgage in default during the interim period (January 1, 2025 — June 30, 2025), can [LENDER] evidence either (a) an interview with the Borrower conducted by the 61st Day of delinquency or (b) a documented reasonable-effort attempt to arrange the interview, OR documentation of why the Borrower was exempt? **Verbatim regulator text:** ``` The Mortgagee must have an interview with the Borrower or make a reasonable effort to arrange an interview no later than the 61st Day of delinquency, unless exempt. ``` _Authority_: HUD ML 2024-24 — III.A.2.h.xii(A) _Source_: _Snapshot_: `6e7e6506e45043e3` _Fetched_: 2026-05-22T19:54:54Z --- #### HUD ML 2024-24 — Early Default Intervention Interview Required Documentation (III.A.2.h.xii(B)) **Obligation ID:** `hud-ml-2024-24-servicing-file-documentation` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-delinquent-loan **Operative duty (lender voice):** > For each Borrower in default during the alternative-interim-procedure > period, [LENDER] must document in the servicing file (i) the reason the > meeting is not required, if exempt; (ii) the dates and methods of its > attempts at arranging an interview; and (iii) the date of its interview > with the Borrower. **Compliance obligation:** > For every FHA-insured Mortgage that became delinquent during the interim period, can [LENDER] retrieve from the servicing file (a) the exemption reason where applicable, (b) the dates and methods of arrangement attempts, and (c) the date of the actual interview with the Borrower? **Verbatim regulator text:** ``` The Mortgagee must document in the servicing file: ``` _Authority_: HUD ML 2024-24 — III.A.2.h.xii(B) _Source_: _Snapshot_: `6e7e6506e45043e3` _Fetched_: 2026-05-22T19:54:54Z --- --- # HUD Mortgagee Letter 2024-25 **Register slug:** `hud-ml-2024-25` **Obligation count:** 2 ## Register description HUD Mortgagee Letter 2024-25. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2024-25 — FHA-Insured Forward Mortgages: Extension of Foreclosure Moratorium for Hurricanes Helene and Milton **Obligation ID:** `hud-ml-2024-25-forward-mortgage-moratorium` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-affected-loan **Operative duty (lender voice):** > For FHA-insured Single Family forward mortgages secured by Properties > located in FEMA-designated disaster areas for Hurricanes Helene and > Milton (across Florida, Georgia, North Carolina, South Carolina, > Tennessee, and Virginia per the FEMA Declarations enumerated in ML > 2024-25), [LENDER] must observe a moratorium on foreclosure through > April 11, 2025, applying both to the initiation of new foreclosures and > to the completion of foreclosures already in process. **Compliance obligation:** > For every FHA-insured forward Mortgage with subject Property in any of the FEMA-Declaration areas listed in ML 2024-25 (Hurricanes Helene and Milton across FL, GA, NC, SC, TN, VA), can [LENDER] evidence that no foreclosure initiation or completion occurred during the moratorium period (through April 11, 2025) and that first-legal-action / Reasonable Diligence Time Frame deadlines were extended by 180 Days from April 11, 2025? **Verbatim regulator text:** ``` Properties secured by FHA-insured Single Family forward mortgages are subject to a moratorium on foreclosure through April 11, 2025. The moratorium applies to the initiation of foreclosures and to the completion of foreclosures in process for the following FEMA Declarations for Hurricanes Helene ``` _Authority_: HUD ML 2024-25 — FHA-Insured Forward Mortgages _Source_: _Snapshot_: `b3293b7ff0dc948d` _Fetched_: 2026-05-22T19:54:56Z --- #### HUD ML 2024-25 — HECM Foreclosure Moratorium for Hurricanes Helene and Milton **Obligation ID:** `hud-ml-2024-25-hecm-moratorium` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-affected-loan **Operative duty (lender voice):** > For FHA-insured HECMs secured by Properties located in FEMA-designated > disaster areas for Hurricanes Helene and Milton, [LENDER] must observe > a moratorium on foreclosures through April 11, 2025 — but only where > the HECM is Due and Payable for reasons other than the death of the last > remaining Borrower and is not subject to a Deferral Period — applying > to both the initiation of foreclosures and foreclosures already in > process. **Compliance obligation:** > For every FHA-insured HECM with subject Property in any FEMA-Declaration area listed in ML 2024-25 that became Due and Payable for reasons other than death of the last remaining Borrower (and was not subject to a Deferral Period), can [LENDER] evidence that no foreclosure initiation or completion occurred during the moratorium period (through April 11, 2025)? **Verbatim regulator text:** ``` The Mortgagee must observe a moratorium on foreclosures of properties secured by FHA-insured HECMs through April 11, 2025, in the following FEMA Declarations for Hurricanes Helene and Milton: ``` _Authority_: HUD ML 2024-25 — HECM Foreclosure Moratorium _Source_: _Snapshot_: `b3293b7ff0dc948d` _Fetched_: 2026-05-22T19:54:56Z --- --- # HUD Mortgagee Letter 2025-06 **Register slug:** `hud-ml-2025-06` **Obligation count:** 2 ## Register description HUD Mortgagee Letter 2025-06. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2025-06 — Laws and Requirements Applicable to Mortgage Servicing (III.A.1.a.ii(A)) **Obligation ID:** `hud-ml-2025-06-servicing-laws-compliance` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** continuous **Operative duty (lender voice):** > [LENDER], as an FHA-approved Mortgagee servicing FHA-insured Mortgages, > must comply with all laws, rules, and requirements applicable to mortgage > servicing, including full compliance with the applicable requirements > under the purview of the Consumer Financial Protection Bureau (CFPB) > (including RESPA and TILA), and, if applicable, Ginnie Mae's > mortgage-backed securities requirements. **Compliance obligation:** > Can [LENDER] evidence that its FHA mortgage-servicing program operates in full compliance with CFPB-administered requirements (RESPA, TILA) and, where applicable, Ginnie Mae's mortgage-backed securities requirements? **Verbatim regulator text:** ``` Mortgagees must comply with all laws, rules, and requirements applicable to mortgage servicing, including full compliance with the applicable requirements under the purview of the Consumer Financial Protection Bureau (CFPB), including the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), and, if applicable, Ginnie Mae’s mortgage-backed securities requirements. ``` _Authority_: HUD ML 2025-06 — III.A.1.a.ii(A) _Source_: _Snapshot_: `a171c17f1f18edcd` _Fetched_: 2026-05-22T19:55:03Z --- #### HUD ML 2025-06 — Eligibility to Participate in HUD Programs (III.A.2.h.iii(A)) **Obligation ID:** `hud-ml-2025-06-loss-mit-eligibility-verification` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-defaulted-loan **Operative duty (lender voice):** > Before offering any FHA Loss Mitigation Option under the framework > established by ML 2025-06, [LENDER] must verify that the Borrowers are > eligible to participate in HUD's Loss Mitigation Program (no other FHA- > insured real estate beyond stated exceptions; no FHA-claim-paid prior > loan in past 3 years; no debarment/suspension/LDP for relevant > home-retention options; no unresolved delinquent Federal Debt for > Partial Claim / Combination / Payment Supplement). **Compliance obligation:** > For every FHA-insured Mortgage in Default for which [LENDER] offered a Loss Mitigation Option under ML 2025-06, can [LENDER] evidence the Borrower-eligibility verification (no other FHA-insured real estate beyond stated exceptions, no FHA-claim-paid prior loan in past 3 years, no debarment/suspension/LDP for relevant options, no unresolved delinquent Federal Debt for Partial Claim / Combination / Payment Supplement)? **Verbatim regulator text:** ``` The Mortgagee must verify that the Borrowers are eligible to participate in HUD’s Loss Mitigation Program. ``` _Authority_: HUD ML 2025-06 — III.A.2.h.iii(A) _Source_: _Snapshot_: `a171c17f1f18edcd` _Fetched_: 2026-05-22T19:55:03Z --- --- # HUD Mortgagee Letter 2025-12 **Register slug:** `hud-ml-2025-12` **Obligation count:** 3 ## Register description HUD Mortgagee Letter 2025-12. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2025-12 — Eligibility to Participate in HUD Programs (III.A.2.h.iii(A)) **Obligation ID:** `hud-ml-2025-12-loss-mit-eligibility-verification` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-defaulted-loan **Operative duty (lender voice):** > Before offering any FHA Loss Mitigation Option, [LENDER] must verify > that the Borrowers are eligible to participate in HUD's Loss Mitigation > Program. To be eligible, the Borrower may not own other FHA-insured > real estate (except under the stated exceptions); has not been the > Borrower (except through inheritance or as co-signer only) on prior > loans on which an FHA claim has been paid within the past three years; > must not be debarred, suspended, or subject to a HUD LDP for the > relevant home-retention options; and may not have unresolved delinquent > Federal Debt for Partial Claim / Combination / Payment Supplement > options. **Compliance obligation:** > For every FHA-insured Mortgage in Default for which [LENDER] offered a Loss Mitigation Option, can [LENDER] evidence the Borrower-eligibility verification (no other FHA-insured real estate beyond stated exceptions; no FHA-claim-paid prior loan in past 3 years; no debarment/suspension/LDP for relevant options; no unresolved delinquent Federal Debt for Partial Claim / Combination / Payment Supplement)? **Verbatim regulator text:** ``` The Mortgagee must verify that the Borrowers are eligible to participate in HUD’s Loss Mitigation Program. ``` _Authority_: HUD ML 2025-12 — III.A.2.h.iii(A) _Source_: _Snapshot_: `31bf9e2b0c437c70` _Fetched_: 2026-05-22T11:23:07Z --- #### HUD ML 2025-12 — Loss Mitigation Program 90-Day Review (III.A.2.h.iii(B)) **Obligation ID:** `hud-ml-2025-12-loss-mit-90-day-evaluation` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-defaulted-loan **Operative duty (lender voice):** > 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 with the determination of eligibility. **Compliance obligation:** > 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? **Verbatim regulator text:** ``` A Mortgagee is required to complete an evaluation of a Defaulted Mortgage for appropriate Loss Mitigation Options before four monthly installments are due and unpaid and send a written Notice to Borrower with the determination of eligibility. ``` _Authority_: HUD ML 2025-12 — III.A.2.h.iii(B) 90-Day Review _Source_: _Snapshot_: `31bf9e2b0c437c70` _Fetched_: 2026-05-22T11:23:07Z --- #### HUD ML 2025-12 — Execution of Permanent Home Retention Option Documents (III.A.2.i.iii(D)) **Obligation ID:** `hud-ml-2025-12-permanent-home-retention-documents-15-days` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-workout **Operative duty (lender voice):** > For each Borrower who successfully completes a Trial Payment Plan (TPP) > on a Permanent Home Retention Option (Standalone Partial Claim, > Standalone Loan Modification, Combination Loan Modification and Partial > Claim, or Payment Supplement), [LENDER] must send the Permanent Home > Retention documents to the Borrower within 15 Days from the successful > completion of the TPP. **Compliance obligation:** > For every Borrower who successfully completed a TPP on a Permanent Home Retention Option under the ML 2025-12 framework, can [LENDER] evidence delivery of the Permanent Home Retention documents to the Borrower within 15 Days of TPP completion? **Verbatim regulator text:** ``` The Mortgagee must send the Permanent Home Retention documents to the Borrower within 15 Days from the successful completion of a TPP. ``` _Authority_: HUD ML 2025-12 — III.A.2.i.iii(D) _Source_: _Snapshot_: `31bf9e2b0c437c70` _Fetched_: 2026-05-22T11:23:07Z --- --- # HUD Mortgagee Letter 2025-13 **Register slug:** `hud-ml-2025-13` **Obligation count:** 3 ## Register description HUD Mortgagee Letter 2025-13. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2025-13 — CWCOT Post-Foreclosure Sales Period (III.A.2.s.iii(F)(1)) **Obligation ID:** `hud-ml-2025-13-cwcot-60-day-listing` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-cwcot-sale **Operative duty (lender voice):** > Where [LENDER] (as Mortgagee) utilizes CWCOT post-foreclosure sales > efforts on FHA-insured Mortgages with post-foreclosure sales scheduled > to occur on or after May 30, 2025, [LENDER] must list the Property for > sale to all third parties for a 60-Day period. **Compliance obligation:** > For every CWCOT post-foreclosure sales effort [LENDER] conducted with sale scheduled on or after May 30, 2025, can [LENDER] evidence that the Property was listed for sale to all third parties for a 60-Day period? **Verbatim regulator text:** ``` Mortgagees that utilize the post-foreclosure sales efforts must list theProperty for sale to all third parties for a 60-Day period. ``` _Authority_: HUD ML 2025-13 — III.A.2.s.iii(F)(1) _Source_: _Snapshot_: `3b7d51eccdef167a` _Fetched_: 2026-05-22T19:55:07Z --- #### HUD ML 2025-13 — Conveyance Time Frame if Property Does Not Sell (III.A.2.s.iii(F)(2)(a)) **Obligation ID:** `hud-ml-2025-13-conveyance-30-day` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-cwcot-sale **Operative duty (lender voice):** > Where [LENDER] conducted a CWCOT post-foreclosure sales effort and the > Property did not sell through the post-foreclosure sales efforts, > [LENDER] must convey the Property to HUD within 30 Days of the end of > the post-foreclosure sales period. **Compliance obligation:** > For every CWCOT post-foreclosure sales effort where the Property did not sell, can [LENDER] evidence conveyance of the Property to HUD within 30 Days of the end of the post-foreclosure sales period? **Verbatim regulator text:** ``` If the Property does not sell through the post-foreclosure sales efforts, the Mortgagee must convey the Property to HUD within 30 Days of the end of the post-foreclosure sales period. ``` _Authority_: HUD ML 2025-13 — III.A.2.s.iii(F)(2)(a) _Source_: _Snapshot_: `3b7d51eccdef167a` _Fetched_: 2026-05-22T19:55:07Z --- #### HUD ML 2025-13 — Submission of Claim Form Parts to HUD for CWCOT (IV.A.2.d.iii) **Obligation ID:** `hud-ml-2025-13-claim-form-parts-submission` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-cwcot-claim **Operative duty (lender voice):** > For every Claim Type 06 (CWCOT) claim, [LENDER] must submit Parts A and > B of form HUD-27011 to HUD simultaneously no later than 30 Days after > the earliest of (a) the date [LENDER] acquired good and marketable > title; (b) the date a third party acquired good and marketable title; > (c) the date the Borrower or other party redeemed the Property; (d) the > date the redemption period expires; or (e) such other date as required > by the FHA Commissioner. **Compliance obligation:** > For every Claim Type 06 CWCOT claim, can [LENDER] evidence simultaneous submission of Parts A and B of HUD-27011 within 30 Days of the earliest trigger event (good-and-marketable-title acquisition by Mortgagee or third party, Borrower redemption, redemption-period expiration, or FHA Commissioner deadline)? **Verbatim regulator text:** ``` The Mortgagee must submit Parts A and B simultaneously no later than 30 Days after: ``` _Authority_: HUD ML 2025-13 — IV.A.2.d.iii _Source_: _Snapshot_: `3b7d51eccdef167a` _Fetched_: 2026-05-22T19:55:07Z --- --- # HUD Mortgagee Letter 2025-21 **Register slug:** `hud-ml-2025-21` **Obligation count:** 3 ## Register description HUD Mortgagee Letter 2025-21. See obligation entries for operative requirements and verbatim primary-source citations. ## Obligations #### HUD ML 2025-21 — Loss Mitigation Program 90-Day Review (III.A.2.h.iii(B)) **Obligation ID:** `hud-ml-2025-21-90-day-loss-mit-evaluation` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-defaulted-loan **Operative duty (lender voice):** > 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. **Compliance obligation:** > 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? **Verbatim regulator text:** ``` A Mortgagee is required to complete an evaluation of a 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. ``` _Authority_: HUD ML 2025-21 — III.A.2.h.iii(B) 90-Day Review _Source_: _Snapshot_: `0f41482d77e0986d` _Fetched_: 2026-05-22T19:55:08Z --- #### HUD ML 2025-21 — Execution of Permanent Home Retention Option Documents (III.A.2.i.iii(D)) **Obligation ID:** `hud-ml-2025-21-permanent-home-retention-documents-15-days` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-workout **Operative duty (lender voice):** > 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. **Compliance obligation:** > 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? **Verbatim regulator text:** ``` The Mortgagee must send the Permanent Home Retention documents to the Borrower within 15 Days from the successful completion of a TPP. ``` _Authority_: HUD ML 2025-21 — III.A.2.i.iii(D) _Source_: _Snapshot_: `0f41482d77e0986d` _Fetched_: 2026-05-22T19:55:08Z --- #### HUD ML 2025-21 — Assumability of FHA-Insured Mortgages (III.A.3.b.i) **Obligation ID:** `hud-ml-2025-21-assumability-no-restrictions` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** continuous **Operative duty (lender voice):** > 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. **Compliance obligation:** > 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]? **Verbatim regulator text:** ``` All FHA-insured Mortgages are assumable. The Mortgagee must not impose, agree to, or enforce legal restrictions on conveyances or assumptions after closing except when: ``` _Authority_: HUD ML 2025-21 — III.A.3.b.i Assumability _Source_: _Snapshot_: `0f41482d77e0986d` _Fetched_: 2026-05-22T19:55:08Z --- --- # FNMA Servicing Guide D1-1 — Requests for the Release of Property and/or Charge-Off of a Mortgage Loan **Register slug:** `fnma-svc-d1-1` **Obligation count:** 2 ## Register description Servicing Guide Chapter D1-1 governs borrower requests for release/partial release of property securing a Fannie Mae mortgage loan. ## Obligations #### FNMA Servicing Guide D1-1-01 — Evaluating a Request for the Release, or Partial Release, of Property Securing a Mortgage Loan **Obligation ID:** `fnma-svc-d1-1-form-236-required-for-release-request` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-event **Operative duty (lender voice):** > To request a review for a release, or partial release, of property > securing a Fannie Mae mortgage loan, the borrower must submit an > Application for Release of Security (Form 236) to [LENDER]. An > application is considered complete when all required documentation and > information, as outlined within the Servicing Guide and Form 236, has > been obtained. When [LENDER] receives a complete application, [LENDER] > must counsel the borrower to consider the costs and benefits of any > action covered by this policy prior to evaluating the request and must > then evaluate each request in accordance with the Guide. **Compliance obligation:** > For every borrower request to release or partially release property securing a Fannie Mae mortgage loan, can [LENDER] evidence receipt of a complete Form 236, pre-evaluation borrower counseling on costs/benefits, and Guide-conforming evaluation? **Verbatim regulator text:** ``` To request a review for a release, or partial release, of property securing a mortgage loan, the borrower must ``` _Authority_: FNMA Servicing Guide D1-1-01 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- #### FNMA Servicing Guide D1-1-01 — Evaluating a Request for the Release, or Partial Release, of Property Securing a Mortgage Loan **Obligation ID:** `fnma-svc-d1-1-texas-50-a-6-escalation` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-event **Operative duty (lender voice):** > With the exception of eminent domain actions that fall within the > policies in the Servicing Guide, all requests related to Texas Section > 50(a)(6) loans must be escalated to Fannie Mae for review and > decisioning; [LENDER] must submit the complete application and all > required documentation to Fannie Mae's SF CPM division. **Compliance obligation:** > For every borrower release-of-security request on a Texas Section 50(a)(6) Fannie Mae mortgage loan (other than an eminent domain action covered by the Guide), can [LENDER] evidence escalation to Fannie Mae's SF CPM division for non-delegated review? **Verbatim regulator text:** ``` that extenuating circumstances exist, the servicer must submit the request to Fannie Mae for a non-delegated ``` _Authority_: FNMA Servicing Guide D1-1-01 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- --- # FNMA Servicing Guide D1-4 — Transfers of Ownership **Register slug:** `fnma-svc-d1-4` **Obligation count:** 2 ## Register description Servicing Guide Chapter D1-4 governs enforcement of the due-on-sale/due-on-transfer provision and exempt transactions. ## Obligations #### FNMA Servicing Guide D1-4.1-01 — Determining Whether a Transfer of Ownership Is Permitted **Obligation ID:** `fnma-svc-d1-4-due-on-sale-investigation` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-event **Operative duty (lender voice):** > When [LENDER] receives a request for a statement of account in > connection with a possible transfer of ownership of a property, or if > [LENDER] learns after the fact that a transfer has occurred, [LENDER] > must review the mortgage loan instruments to determine whether the > mortgage loan is subject to enforcement of the due-on-sale (or > due-on-transfer) provision, investigate any questionable changes to > determine whether a transfer of ownership has occurred, and determine > whether any action needs to be taken to enforce the due-on-sale (or > due-on-transfer) provision. **Compliance obligation:** > For every statement-of-account request or after-the-fact transfer discovery on a Fannie Mae mortgage loan, can [LENDER] evidence review of the loan instruments, investigation of any questionable changes, and a documented enforcement determination for the due-on-sale (or due-on-transfer) provision? **Verbatim regulator text:** ``` Review the mortgage loan instruments to determine whether the mortgage loan is subject to ``` _Authority_: FNMA Servicing Guide D1-4.1-01 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- #### FNMA Servicing Guide D1-4.1-02 — Allowable Exemptions Due to the Type of Transfer **Obligation ID:** `fnma-svc-d1-4-exempt-transactions-no-approval` **Workflow phase:** servicing **Owner role:** default_servicing_analyst **Cadence:** per-event **Operative duty (lender voice):** > Unless the previous borrower requests a release of liability, [LENDER] > must process exempt transactions (the categories enumerated in > D1-4.1-02, including specified joint-tenant survivorships, junior- > lienholder foreclosures, certain co-borrower transfers, occupant > natural-person transfers, qualifying leasehold interests, certain > subordinate-lien creations, and listed family-member / divorce-decree > / inter vivos trust transfers) without reviewing or approving the > terms of the transfer. **Compliance obligation:** > For every D1-4.1-02 exempt transfer event on a Fannie Mae mortgage loan, can [LENDER] evidence processing without unilateral review/approval of the transfer terms (absent a prior-borrower release-of-liability request)? **Verbatim regulator text:** ``` Unless the previous borrower requests a release of liability, the servicer must process the following exempt ``` _Authority_: FNMA Servicing Guide D1-4.1-02 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- --- # FNMA Servicing Guide D2-1 — Working with a Borrower Who is Facing Default **Register slug:** `fnma-svc-d2-1` **Obligation count:** 2 ## Register description Servicing Guide Chapter D2-1 governs imminent-default evaluation and the prohibition on soliciting current/<30-day-delinquent borrowers. ## Obligations #### FNMA Servicing Guide D2-1-01 — Determining if the Borrower's Mortgage Payment is in Imminent Default **Obligation ID:** `fnma-svc-d2-1-evaluate-imminent-default` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-event **Operative duty (lender voice):** > [LENDER] must consider available workout options when [LENDER] is > notified or otherwise becomes aware of events or factors that are > expected to cause the borrower's monthly payment to be in default > within the next 90 days ("imminent default"). **Compliance obligation:** > For every Fannie Mae mortgage loan where [LENDER] is notified or aware of factors expected to cause default within 90 days, can [LENDER] evidence consideration of available workout options consistent with D2-1-01? **Verbatim regulator text:** ``` The servicer must consider available workout options when the servicer is notified or otherwise becomes aware ``` _Authority_: FNMA Servicing Guide D2-1-01 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- #### FNMA Servicing Guide D2-1-01 — Evaluating a Borrower Facing Imminent Default **Obligation ID:** `fnma-svc-d2-1-no-solicit-current-borrowers` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** continuous **Operative duty (lender voice):** > [LENDER] must not solicit borrowers who are current or less than 30 > days delinquent for a workout option. **Compliance obligation:** > Can [LENDER] evidence that no workout-option solicitation was sent to any Fannie Mae borrower who was current or less than 30 days delinquent at the time of the solicitation? **Verbatim regulator text:** ``` The servicer must not solicit borrowers who are current or less than 30 days delinquent for a workout option. ``` _Authority_: FNMA Servicing Guide D2-1-01 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- --- # FNMA Servicing Guide D2-2 — Requirements for Contacting a Borrower **Register slug:** `fnma-svc-d2-2` **Obligation count:** 5 ## Register description FNMA Servicing Guide D2-2-01 through D2-2-03 govern delinquent- borrower outreach: Quality Right Party Contact (QRPC) achievement requirement, outbound contact timing (begin no later than day 36 of delinquency; every 7 days continuing thereafter), 60-day judicial / 30-day non-judicial pre-foreclosure-sale outbound-contact stop rule, day-20 payment reminder notice rule, and message content requirements for outbound contacts. Fills FNMA Servicing D2-2 gap. ## Obligations #### FNMA Servicing Guide D2-2-01 — Servicer must make every attempt to achieve QRPC **Obligation ID:** `fnma-svc-d2-2-01-must-attempt-qrpc` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** per-delinquency **Operative duty (lender voice):** > [LENDER] (servicer) shall make every attempt to achieve Quality > Right Party Contact (QRPC) with the borrower, co-borrower, or > trusted advisor. The purpose of QRPC is to determine the > delinquency reason, occupancy status, ability to repay, educate > the borrower on workout options, and obtain a commitment to > resolve the delinquency. **Compliance obligation:** > For every delinquent FNMA-owned loan, can [LENDER] evidence (via call logs, outreach records, QRPC achievement flag in servicing system) that every attempt was made to achieve QRPC, and document each QRPC achievement with the 5 required purpose elements covered? **Verbatim regulator text:** ``` The servicer must make every attempt to achieve QRPC. ``` _Authority_: FNMA Servicing Guide D2-2-01 — Achieving Quality Right Party Contact _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Failure to attempt QRPC is a FNMA Servicing Guide breach; reduces workout-option uptake and increases foreclosure risk. --- #### FNMA Servicing Guide D2-2-02 — Begin outbound contact by day 36, continue every 7 days **Obligation ID:** `fnma-svc-d2-2-02-outbound-contact-day-36-every-7-days` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** per-delinquency **Operative duty (lender voice):** > [LENDER] (servicer) shall begin outbound contact attempts no > later than the 36th day of delinquency and shall continue > outbound contact attempts every 7 days until QRPC is achieved > (and/or borrower adheres to a workout agreement), the delinquency > is resolved, a complete Borrower Response Package (BRP) is > received, the borrower has provided a promise to pay (≤30 days), > or QRPC is achieved and the borrower indicates no interest in a > workout option. [LENDER] is authorized but not required to begin > earlier than day 36 (e.g., using behavioral models). **Compliance obligation:** > For every delinquent FNMA loan, can [LENDER] evidence (via servicing-system contact-attempt logs) (a) first outbound contact attempt by day 36 of delinquency, and (b) continued outbound attempts every 7 days until one of the 5 stopping conditions was reached? **Verbatim regulator text:** ``` The servicer must begin outbound contact attempts no later than the 36th day of delinquency and must continue every 7 days ``` _Authority_: FNMA Servicing Guide D2-2-02 — Outbound Contact Attempt Requirements _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Failure to attempt timely outbound contact is a FNMA Servicing Guide breach + state-law early-default-contact exposure. --- #### FNMA Servicing Guide D2-2-02 — Discontinue outbound contact 60/30 days before foreclosure sale **Obligation ID:** `fnma-svc-d2-2-02-discontinue-outbound-before-foreclosure-sale` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** per-foreclosure **Operative duty (lender voice):** > Unless required by applicable law to continue outbound contact > attempts to the delinquent borrower, [LENDER] (servicer) shall > discontinue all outbound contact attempts: (a) 60 days prior to > the judicial foreclosure sale date, or (b) 30 days prior to a > non-judicial foreclosure sale date. The pre-sale outbound-stop > rule prevents harassment-pattern claims while foreclosure > proceedings finalize. **Compliance obligation:** > For every FNMA loan that advanced to foreclosure sale, can [LENDER] evidence (via outbound-contact logs) the last outbound contact attempt occurred at least 60 days before judicial sale or 30 days before non-judicial sale — UNLESS applicable law required continued contact? **Verbatim regulator text:** ``` the servicer must discontinue all outbound contact attempts ``` _Authority_: FNMA Servicing Guide D2-2-02 — Outbound Contact Attempt Requirements _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Continued outbound contact during the no-contact pre-sale window can support harassment / unfair-practices claims. --- #### FNMA Servicing Guide D2-2-02 — Emphasize importance of timely payment during outbound contact **Obligation ID:** `fnma-svc-d2-2-02-emphasize-payment-importance-during-contact` **Workflow phase:** default_collections **Owner role:** loss_mitigation_specialist **Cadence:** per-outbound-attempt **Operative duty (lender voice):** > When [LENDER] (servicer) communicates with the borrower during > outbound contact attempts, [LENDER] shall emphasize the > importance of making payments on or prior to their due dates. > The messaging requirement reinforces FNMA's preference for > payment-current resolution before workout-option escalation. **Compliance obligation:** > Can [LENDER] evidence (via call-script approvals, QA samples of recorded calls, training materials) that outbound-contact messaging consistently emphasizes payment-on-time importance to the borrower? **Verbatim regulator text:** ``` the servicer must emphasize the importance of making payments on or prior to their due dates. ``` _Authority_: FNMA Servicing Guide D2-2-02 — Outbound Contact Attempt Requirements _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Off-message outbound contact scripts undercut FNMA payment-current preference and weaken servicing-performance metrics. --- #### FNMA Servicing Guide D2-2-03 — Send payment reminder notice no later than day 20 **Obligation ID:** `fnma-svc-d2-2-03-payment-reminder-by-day-20` **Workflow phase:** default_collections **Owner role:** chief_servicing_officer **Cadence:** per-late-payment-month **Operative duty (lender voice):** > [LENDER] (servicer) shall send a payment reminder notice to the > borrower no later than the 20th day of the month if the payment > has not been received. Exceptions apply when (a) the mortgage > loan is a second lien mortgage loan (see D2-2-09) or (b) the > borrower is subject to an active forbearance plan (without regard > to whether the plan provides for reduced or suspended payments). > The notice must address the borrower by name, state a desire to > work with the borrower to preserve homeownership, state the > amount of late charges due (if applicable), and explain late- > payment-credit-reporting consequences. **Compliance obligation:** > For every loan where payment was not received in the current month, can [LENDER] evidence a payment-reminder notice was sent by the 20th day of the month? Are exception flags (second lien, active forbearance) recorded for any non-sent notices? **Verbatim regulator text:** ``` The servicer must send a payment reminder notice to the borrower no later than the 20th day of the month if the payment has not been received ``` _Authority_: FNMA Servicing Guide D2-2-03 — Sending a Payment Reminder Notice _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Missing payment-reminder notice is a FNMA Servicing Guide breach and reduces borrower opportunity to cure before later-stage collection. --- --- # FNMA Servicing Guide D2-3 — Fannie Mae's Home Retention and Liquidation Workout Options **Register slug:** `fnma-svc-d2-3` **Obligation count:** 2 ## Register description Servicing Guide Chapter D2-3 covers the FNMA workout menu and workout-selection governance. ## Obligations #### FNMA Servicing Guide D2-3.1-01 — Determining the Appropriate Workout Option **Obligation ID:** `fnma-svc-d2-3-no-upfront-cash-contribution` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-event **Operative duty (lender voice):** > [LENDER] must not require the borrower to make an upfront cash > contribution to be considered for a workout option on a Fannie Mae > mortgage loan. **Compliance obligation:** > Can [LENDER] evidence that no upfront cash contribution was required from any borrower as a condition of being considered for a Fannie Mae workout option? **Verbatim regulator text:** ``` The servicer must not require the borrower to make an upfront cash contribution to be considered for a workout ``` _Authority_: FNMA Servicing Guide D2-3.1-01 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- #### FNMA Servicing Guide D2-3.1-02 — Conditions of a First and Second Lien Mortgage Loan Modification for an MBS Mortgage Loan **Obligation ID:** `fnma-svc-d2-3-no-modify-loan-in-mbs-pool` **Workflow phase:** servicing **Owner role:** loss_mitigation_specialist **Cadence:** per-loss-mit-event **Operative duty (lender voice):** > [LENDER] must not modify a mortgage loan while it is in an MBS pool > (including PFP mortgage loans); performing MBS mortgage loans are > ineligible for purchase from the related MBS pool for the purpose of > modifying the mortgage loan term, interest rate, UPB, or other major > characteristic(s) of the mortgage loan. **Compliance obligation:** > Can [LENDER] evidence that no mortgage loan was modified while still in an MBS pool, and that no performing MBS mortgage loan was purchased from its pool for the purpose of modifying its term, rate, UPB, or other major characteristic? **Verbatim regulator text:** ``` The servicer must not modify a mortgage loan while it is in an MBS pool (including PFP mortgage loans). ``` _Authority_: FNMA Servicing Guide D2-3.1-02 _Source_: _Snapshot_: `cf63a82bbb4adfba` _Fetched_: 2026-05-22T23:53:19Z --- --- # FNMA Servicing Guide D2-3.1 — Determining the Appropriate Workout Option / Conditions for MBS Pool Modification / Group Home Servicing **Register slug:** `fnma-svc-d2-3-1` **Obligation count:** 5 ## Register description FNMA Servicing Guide D2-3.1-02 and D2-3.1-03 govern operational rules for workout options on MBS-pool mortgage loans and group home mortgage loans: no-modify-while-in-MBS-pool rule, 4- consecutive-month delinquency precondition for special-servicing MBS removal, Trial Period Plan payment precondition for modification implementation, modification-effective-only-after- MBS-removal rule, and group-home foreclosure-prevention duty requiring work with the funding agency. Fills FNMA Servicing D2- 3.1 chapter gap. ## Obligations #### FNMA Servicing Guide D2-3.1-02 — No mortgage modification while loan is in an MBS pool **Obligation ID:** `fnma-svc-d2-3-1-02-no-modify-while-in-mbs-pool` **Workflow phase:** loss_mitigation **Owner role:** loss_mitigation_specialist **Cadence:** per-mbs-modification **Operative duty (lender voice):** > [LENDER] (servicer) shall NOT modify a mortgage loan while it is > in an MBS pool (including PFP mortgage loans). Performing MBS > mortgage loans are ineligible for purchase from the related MBS > pool for the purpose of modifying the mortgage loan term, > interest rate, UPB, or other major characteristics. The MBS- > structural constraint prevents pool-level investor interest > dilution via loan-level modifications. **Compliance obligation:** > For every FNMA-MBS mortgage loan modification [LENDER] executed, can [LENDER] evidence that the loan was REMOVED from the MBS pool before the modification was executed? **Verbatim regulator text:** ``` The servicer must not modify a mortgage loan while it is in an MBS pool ``` _Authority_: FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Modification of an in-pool MBS mortgage loan is a foundational MBS-structural breach; may trigger pool-level investor claims and FNMA enforcement. --- #### FNMA Servicing Guide D2-3.1-02 — 4-consecutive-month delinquency precondition for special-servicing MBS removal **Obligation ID:** `fnma-svc-d2-3-1-02-mbs-removal-4-consecutive-month-delinquency` **Workflow phase:** loss_mitigation **Owner role:** investor_reporting_manager **Cadence:** per-mbs-removal **Operative duty (lender voice):** > [LENDER] (servicer) may remove a special-servicing-option > mortgage loan from its MBS pool for modification only if the > mortgage loan has been in a continuous state of delinquency for > four consecutive monthly payment due dates (or at least eight > consecutive payment due dates in the case of a biweekly mortgage > loan) without a full cure of the delinquency during that period. > The bright-line delinquency-duration threshold prevents premature > pool removal. **Compliance obligation:** > For every special-servicing-option MBS loan [LENDER] removed from its pool for modification, can [LENDER] evidence (a) 4 consecutive monthly delinquency due dates (or 8 biweekly) and (b) no full cure during that period? **Verbatim regulator text:** ``` if a special servicing option mortgage loan has been in a continuous state of delinquency for four consecutive monthly payment due dates ``` _Authority_: FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Pool removal without the 4-consecutive-delinquency precondition is a FNMA Servicing Guide breach. --- #### FNMA Servicing Guide D2-3.1-02 — Modification not implemented if Trial Period Plan payments not made **Obligation ID:** `fnma-svc-d2-3-1-02-trial-period-payments-precondition` **Workflow phase:** loss_mitigation **Owner role:** loss_mitigation_specialist **Cadence:** per-modification **Operative duty (lender voice):** > [LENDER] (servicer) shall ensure that the mortgage loan > modification is NOT implemented if the required Trial Period > Plan payments are not made in accordance with the applicable > mortgage loan modification workout option, because the > preconditions to make the modification effective have not been > satisfied. The Trial Period Plan payment record is the operative > gate for permanent modification. **Compliance obligation:** > For every mortgage loan modification [LENDER] implemented, can [LENDER] evidence that all required Trial Period Plan payments were made per the workout-option terms before modification documents were executed? **Verbatim regulator text:** ``` The servicer must ensure that the mortgage loan modification is not implemented if the required Trial Period Plan payments are not made ``` _Authority_: FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Implementing a modification on a borrower who did not complete Trial Period Plan payments is a FNMA Servicing Guide breach. --- #### FNMA Servicing Guide D2-3.1-02 — Mortgage loan modification not effective while in MBS pool **Obligation ID:** `fnma-svc-d2-3-1-02-modification-not-effective-while-in-pool` **Workflow phase:** loss_mitigation **Owner role:** investor_reporting_manager **Cadence:** per-modification **Operative duty (lender voice):** > [LENDER] (servicer) shall ensure that a mortgage loan > modification does NOT become effective while it remains in an > MBS pool. The modification agreement must be executed after the > mortgage loan has been removed from any MBS pool and reclassified > as a Fannie Mae portfolio mortgage loan, and must reflect the > actual date of [LENDER]'s execution. **Compliance obligation:** > For every mortgage loan modification, can [LENDER] evidence (a) the loan was removed from any MBS pool and reclassified as a portfolio loan BEFORE the modification agreement was executed, and (b) the agreement reflects the actual execution date? **Verbatim regulator text:** ``` The servicer must ensure that a mortgage loan modification does not become effective while it remains in an MBS pool. ``` _Authority_: FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Effecting a modification while loan is still in an MBS pool is a foundational MBS-structural breach. --- #### FNMA Servicing Guide D2-3.1-03 — Group home delinquency: work with funding agency to resolve **Obligation ID:** `fnma-svc-d2-3-1-03-group-home-work-with-funding-agency` **Workflow phase:** loss_mitigation **Owner role:** loss_mitigation_specialist **Cadence:** per-group-home-delinquency **Operative duty (lender voice):** > For mortgage loans where the property securing the mortgage loan > serves as a group home, [LENDER] (servicer) shall work with the > borrower AND the funding agency to resolve a serious delinquency. > [LENDER] shall devote additional resources to foreclosure > prevention efforts when the group home is still occupied by > disabled tenants and, if appropriate, delay the initiation of > foreclosure. The group-home rule recognizes the vulnerable- > population housing-protection context. **Compliance obligation:** > For every group-home mortgage loan delinquency, can [LENDER] evidence (a) outreach to BOTH the borrower and the funding agency, (b) additional foreclosure-prevention resources devoted, and (c) any foreclosure-initiation delays when disabled tenants still occupy? **Verbatim regulator text:** ``` must work with the borrower and the funding agency to resolve a serious delinquency ``` _Authority_: FNMA Servicing Guide D2-3.1-03 — Working with a Borrower that has a Group Home Mortgage Loan _Source_: _Snapshot_: `f662f911b3ddaf1d` _Fetched_: 2026-05-25T14:09:40Z **Consequence of non-compliance:** Standard-track foreclosure on a group home with disabled occupants creates fair-housing and FNMA-program-specific exposure. --- --- # 12 CFR §1024.41 — Loss mitigation procedures **Register slug:** `reg-x-1024.41` **Obligation count:** 17 ## Register description Regulation X §1024.41 sets the loss-mitigation procedural framework for mortgage servicers: acknowledgment of receipt, 30-day evaluation of complete applications, denial-reason disclosures, 14-day appeal rights, the 120-day pre-foreclosure-referral hold, and the prohibition on foreclosure judgment/sale during evaluation (the anti-dual-tracking rules). ## Obligations #### 12 CFR §1024.41(a) **Obligation ID:** `reg-x-1024.41-a` **Operative duty (lender voice):** > (a): (a) Enforcement and limitations. A borrower may enforce the provisions of this section pursuant to section 6(f) of RESPA ( 12 U.S.C. 2605(f) ). Nothing in § 1024.41 imposes a duty on a servicer to provide any borrower with any specific loss mitigation option . Nothing in § 1024.41 should be construe… **Verbatim regulator text:** ``` (a) Enforcement and limitations. A borrower may enforce the provisions of this section pursuant to section 6(f) of RESPA ( 12 U.S.C. 2605(f) ). Nothing in § 1024.41 imposes a duty on a servicer to provide any borrower with any specific loss mitigation option . Nothing in § 1024.41 should be construed to create a right for a borrower to enforce the terms of any agreement between a servicer and the owner or assignee of a mortgage loan , including with respect to the evaluation for, or offer of, any loss mitigation option or to eliminate any such right that may exist pursuant to applicable law. ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(b) **Obligation ID:** `reg-x-1024.41-b` **Operative duty (lender voice):** > (b): (b) Receipt of a loss mitigation application —(1) Complete loss mitigation application. A complete loss mitigation application means an application in connection with which a servicer has received all the information that the servicer requires from a borrower in evaluating applications for the loss … **Verbatim regulator text:** ``` (b) Receipt of a loss mitigation application —(1) Complete loss mitigation application. A complete loss mitigation application means an application in connection with which a servicer has received all the information that the servicer requires from a borrower in evaluating applications for the loss mitigation options available to the borrower. A servicer shall exercise reasonable diligence in obtaining documents and information to complete a loss mitigation application . (2) Review of loss mitigation application submission —(i) Requirements. If a servicer receives a loss mitigation application 45 days or more before a foreclosure sale, a servicer shall: (A) Promptly upon receipt of a loss mitigation application , review the loss mitigation application to determine if the loss mitigation application is complete; and (B) Notify the borrower in writing within 5 days (excluding legal public holi days , Satur days , and Sun days ) after receiving the loss mitigation application that the servicer acknowledges receipt of the loss mitigation application and that the servicer has determined that the loss mitigation application is either complete or incomplete. If a loss mitigation application is incomplete, the notice shall state the additional documents and information the borrower must submit to make the loss mitigation application complete and the applicable date pursuant to paragraph (b)(2)(ii) of this section. The notice to the borrower shall include a statement that the borrower should consider contacting servicers of any other mortgage loans secured by the same property to discuss available loss mitigation options. (ii) Time period disclosure. The notice required pursuant to paragraph (b)(2)(i)(B) of this section must include a reasonable date by which the borrower should submit the documents and information necessary to make the loss mitigation application complete. (3) Determining protections. To the extent a determination of whether protections under this section apply to a borrower is made on the basis of the number of days between when a complete loss mitigation application is received and when a foreclosure sale occurs, such determination shall be made as of the date a complete loss mitigation application is received. ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(c) **Obligation ID:** `reg-x-1024.41-c` **Operative duty (lender voice):** > (c): (c) Evaluation of loss mitigation applications —(1) Complete loss mitigation application. Except as provided in paragraph (c)(4)(ii) of this section, if a servicer receives a complete loss mitigation application more than 37 days before a foreclosure sale, then, within 30 days of receiving the compl… **Verbatim regulator text:** ``` (c) Evaluation of loss mitigation applications —(1) Complete loss mitigation application. Except as provided in paragraph (c)(4)(ii) of this section, if a servicer receives a complete loss mitigation application more than 37 days before a foreclosure sale, then, within 30 days of receiving the complete loss mitigation application , a servicer shall: ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(i) **Obligation ID:** `reg-x-1024.41-i` **Operative duty (lender voice):** > (i): (i) Evaluate the borrower for all loss mitigation options available to the borrower; and (ii) Provide the borrower with a notice in writing stating the servicer 's determination of which loss mitigation options, if any, it will offer to the borrower on behalf of the owner or assignee of the mortgage… **Verbatim regulator text:** ``` (i) Evaluate the borrower for all loss mitigation options available to the borrower; and (ii) Provide the borrower with a notice in writing stating the servicer 's determination of which loss mitigation options, if any, it will offer to the borrower on behalf of the owner or assignee of the mortgage . The servicer shall include in this notice the amount of time the borrower has to accept or reject an offer of a loss mitigation program as provided for in paragraph (e) of this section, if applicable, and a notification, if applicable, that the borrower has the right to appeal the denial of any loan modification option as well as the amount of time the borrower has to file such an appeal and any requirements for making an appeal, as provided for in paragraph (h) of this section. (2) Incomplete loss mitigation application evaluation —(i) In general. Except as set forth in paragraphs (c)(2)(ii), (iii), and (v) of this section, a servicer shall not evade the requirement to evaluate a complete loss mitigation application for all loss mitigation options available to the borrower by offering a loss mitigation option based upon an evaluation of any information provided by a borrower in connection with an incomplete loss mitigation application . (ii) Reasonable time. Notwithstanding paragraph (c)(2)(i) of this section, if a servicer has exercised reasonable diligence in obtaining documents and information to complete a loss mitigation application , but a loss mitigation application remains incomplete for a significant period of time under the circumstances without further progress by a borrower to make the loss mitigation application complete, a servicer may, in its discretion, evaluate an incomplete loss mitigation application and offer a borrower a loss mitigation option . Any such evaluation and offer is not subject to the requirements of this section and shall not constitute an evaluation of a single complete loss mitigation application for purposes of paragraph (i) of this section. (iii) Short-term loss mitigation options. Notwithstanding paragraph (c)(2)(i) of this section, a servicer may offer a short-term payment forbearance program or a short-term repayment plan to a borrower based upon an evaluation of an incomplete loss mitigation application . Promptly after offering a payment forbearance program or a repayment plan under this paragraph (c)(2)(iii), unless the borrower has rejected the offer, the servicer must provide the borrower a written notice stating the specific payment terms and duration of the program or plan, that the servicer offered the program or plan based on an evaluation of an incomplete application , that other loss mitigation options may be available, and that the borrower has the option to submit a complete loss mitigation application to receive an evaluation for all loss mitigation options available to the borrower regardless of whether the borrower accepts the program or plan. A servicer shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process, and shall not move for foreclosure judgment or order of sale or conduct a foreclosure sale, if a borrower is performing pursuant to the terms of a payment forbearance program or repayment plan offered pursuant to this paragraph (c)(2)(iii). A servicer may offer a short-term payment forbearance program in conjunction with a short-term repayment plan pursuant to this paragraph (c)(2)(iii). (iv) Facially complete application. A loss mitigation application shall be considered facially complete when a borrower submits all the missing documents and information as stated in the notice required under paragraph (b)(2)(i)(B) of this section, when no additional information is requested in such notice, or once the servicer is required to provide the borrower a written notice pursuant to paragraph (c)(3)(i) of this section. If the servicer later discovers that additional information or corrections to a previously submitted document are required to complete the application , the servicer must promptly request the missing information or corrected documents and treat the application as complete for the purposes of paragraphs (f)(2) and (g) of this section until the borrower is given a reasonable opportunity to complete the application . If the borrower completes the application within this period, the application shall be considered complete as of the date it first became facially complete, for the purposes of paragraphs (d), (e), (f)(2), (g), and (h) of this section, and as of the date the application was actually complete for the purposes of this paragraph (c). A servicer that complies with this paragraph (c)(2)(iv) will be deemed to have fulfilled its obligation to provide an accurate notice under paragraph (b)(2)(i)(B) of this section. ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(v) **Obligation ID:** `reg-x-1024.41-v` **Operative duty (lender voice):** > (v): (v) Certain COVID-19-related loss mitigation options. (A) Notwithstanding paragraph (c)(2)(i) of this section, a servicer may offer a borrower a loss mitigation option based upon evaluation of an incomplete application , provided that all of the following criteria are met: (1) The loss mitigation op… **Verbatim regulator text:** ``` (v) Certain COVID-19-related loss mitigation options. (A) Notwithstanding paragraph (c)(2)(i) of this section, a servicer may offer a borrower a loss mitigation option based upon evaluation of an incomplete application , provided that all of the following criteria are met: (1) The loss mitigation option permits the borrower to delay paying covered amounts until the mortgage loan is refinanced, the mortgaged property is sold, the term of the mortgage loan ends, or, for a mortgage loan insured by the Federal Housing Administration, the mortgage insurance terminates. For purposes of this paragraph (c)(2)(v)(A)( 1 ), “covered amounts” includes, without limitation, all principal and interest payments forborne under a payment forbearance program made available to borrowers experiencing a COVID-19-related hardship, including a payment forbearance program made pursuant to the Coronavirus Economic Stabilization Act, section 4022 ( 15 U.S.C. 9056 ); it also includes, without limitation, all other principal and interest payments that are due and unpaid by a borrower experiencing COVID-19-related hardship. For purposes of this paragraph (c)(2)(v)(A)( 1 ), “the term of the mortgage loan” means the term of the mortgage loan according to the obligation between the parties in effect when the borrower is offered the loss mitigation option . (2) Any amounts that the borrower may delay paying as described in paragraph (c)(2)(v)(A)( 1 ) of this section do not accrue interest; the servicer does not charge any fee in connection with the loss mitigation option ; and the servicer waives all existing late charges, penalties, stop payment fees, or similar charges promptly upon the borrower's acceptance of the loss mitigation option . (3) The borrower's acceptance of an offer made pursuant to paragraph (c)(2)(v)(A) of this section ends any pre-existing delinquency on the mortgage loan . (B) Once the borrower accepts an offer made pursuant to paragraph (c)(2)(v)(A) of this section, the servicer is not required to comply with paragraph (b)(1) or (2) of this section with regard to any loss mitigation application the borrower submitted prior to the servicer 's offer of the loss mitigation option described in paragraph (c)(2)(v)(A) of this section. (3) Notice of complete application. ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(i) **Obligation ID:** `reg-x-1024.41-i` **Operative duty (lender voice):** > (i): (i) Except as provided in paragraph (c)(3)(ii) of this section, within 5 days (excluding legal public holi days , Satur days , and Sun days ) after receiving a borrower's complete loss mitigation application , a servicer shall provide the borrower a written notice that sets forth the following infor… **Verbatim regulator text:** ``` (i) Except as provided in paragraph (c)(3)(ii) of this section, within 5 days (excluding legal public holi days , Satur days , and Sun days ) after receiving a borrower's complete loss mitigation application , a servicer shall provide the borrower a written notice that sets forth the following information: (A) That the loss mitigation application is complete; (B) The date the servicer received the complete application ; (C) That the servicer expects to complete its evaluation within 30 days of the date it received the complete application ; (D) That the borrower is entitled to certain foreclosure protections because the servicer has received the complete application , and, as applicable, either: (1) If the servicer has not made the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process, that the servicer cannot make the first notice or filing required to commence or initiate the foreclosure process under applicable law before evaluating the borrower's complete application ; or (2) If the servicer has made the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process, that the servicer has begun the foreclosure process, and that the servicer cannot conduct a foreclosure sale before evaluating the borrower's complete application ; (E) That the servicer may need additional information at a later date to evaluate the application , in which case the servicer will request that information from the borrower and give the borrower a reasonable opportunity to submit it, the evaluation process may take longer, and the foreclosure protections could end if the servicer does not receive the information as requested; and (F) That the borrower may be entitled to additional protections under State or Federal law. (ii) A servicer is not required to provide a notice pursuant to paragraph (c)(3)(i) of this section if: (A) The servicer has already provided the borrower a notice under paragraph (b)(2)(i)(B) of this section informing the borrower that the application is complete and the servicer has not subsequently requested additional information or a corrected version of a previously submitted document from the borrower pursuant to paragraph (c)(2)(iv) of this section; (B) The application was not complete or facially complete more than 37 days before a foreclosure sale; or (C) The servicer has already provided the borrower a notice regarding the application under paragraph (c)(1)(ii) of this section. (4) Information not in the borrower's control —(i) Reasonable diligence. If a servicer requires documents or information not in the borrower's control to determine which loss mitigation options, if any, it will offer to the borrower, the servicer must exercise reasonable diligence in obtaining such documents or information. (ii) Effect in case of delay. (A)( 1 ) Except as provided in paragraph (c)(4)(ii)(A)( 2 ) of this section, a servicer must not deny a complete loss mitigation application solely because the servicer lacks required documents or information not in the borrower's control . (2) If a servicer has exercised reasonable diligence to obtain required documents or information from a party other than the borrower or the servicer , but the servicer has been unable to obtain such documents or information for a significant period of time following the 30-day period identified in paragraph (c)(1) of this section, and the servicer , in accordance with applicable requirements established by the owner or assignee of the borrower's mortgage loan , is unable to determine which loss mitigation options, if any, it will offer the borrower without such documents or information, the servicer may deny the application and provide the borrower with a written notice in accordance with paragraph (c)(1)(ii) of this section. When providing the written notice in accordance with paragraph (c)(1)(ii) of this section, the servicer must also provide the borrower with a copy of the written notice required by paragraph (c)(4)(ii)(B) of this section. (B) If a servicer is unable to make a determination within the 30-day period identified in paragraph (c)(1) of this section as to which loss mitigation options, if any, it will offer to the borrower because the servicer lacks required documents or information from a party other than the borrower or the servicer , the servicer must, within such 30-day period or promptly thereafter, provide the borrower a written notice, informing the borrower: (1) That the servicer has not received documents or information not in the borrower's control that the servicer requires to determine which loss mitigation options, if any, it will offer to the borrower on behalf of the owner or assignee of the mortgage ; (2) Of the specific documents or information that the servicer lacks; (3) That the servicer has requested such documents or information; and (4) That the servicer will complete its evaluation of the borrower for all available loss mitigation options promptly upon receiving the documents or information. (C) If a servicer must provide a notice required by paragraph (c)(4)(ii)(B) of this section, the servicer must not provide the borrower a written notice pursuant to paragraph (c)(1)(ii) of this section until the servicer receives the required documents or information referenced in paragraph (c)(4)(ii)(B)( 2 ) of this section, except as provided in paragraph (c)(4)(ii)(A)( 2 ) of this section. Upon receiving such required documents or information, the servicer must promptly provide the borrower with the written notice pursuant to paragraph (c)(1)(ii) of this section. ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(d) **Obligation ID:** `reg-x-1024.41-d` **Operative duty (lender voice):** > (d): (d) Denial of loan modification options. If a borrower's complete loss mitigation application is denied for any trial or permanent loan modification option available to the borrower pursuant to paragraph (c) of this section, a servicer shall state in the notice sent to the borrower pursuant to parag… **Verbatim regulator text:** ``` (d) Denial of loan modification options. If a borrower's complete loss mitigation application is denied for any trial or permanent loan modification option available to the borrower pursuant to paragraph (c) of this section, a servicer shall state in the notice sent to the borrower pursuant to paragraph (c)(1)(ii) of this section the specific reason or reasons for the servicer 's determination for each such trial or permanent loan modification option and, if applicable, that the borrower was not evaluated on other criteria. ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(e) **Obligation ID:** `reg-x-1024.41-e` **Operative duty (lender voice):** > (e): (e) Borrower response —(1) In general. Subject to paragraphs (e)(2)(ii) and (iii) of this section, if a complete loss mitigation application is received 90 days or more before a foreclosure sale, a servicer may require that a borrower accept or reject an offer of a loss mitigation option no earlier … **Verbatim regulator text:** ``` (e) Borrower response —(1) In general. Subject to paragraphs (e)(2)(ii) and (iii) of this section, if a complete loss mitigation application is received 90 days or more before a foreclosure sale, a servicer may require that a borrower accept or reject an offer of a loss mitigation option no earlier than 14 days after the servicer provides the offer of a loss mitigation option to the borrower. If a complete loss mitigation application is received less than 90 days before a foreclosure sale, but more than 37 days before a foreclosure sale, a servicer may require that a borrower accept or reject an offer of a loss mitigation option no earlier than 7 days after the servicer provides the offer of a loss mitigation option to the borrower. (2) Rejection —(i) In general. Except as set forth in paragraphs (e)(2)(ii) and (iii) of this section, a servicer may deem a borrower that has not accepted an offer of a loss mitigation option within the deadline established pursuant to paragraph (e)(1) of this section to have rejected the offer of a loss mitigation option . (ii) Trial Loan Modification Plan. A borrower who does not satisfy the servicer 's requirements for accepting a trial loan modification plan, but submits the payments that would be owed pursuant to any such plan within the deadline established pursuant to paragraph (e)(1) of this section, shall be provided a reasonable period of time to fulfill any remaining requirements of the servicer for acceptance of the trial loan modification plan beyond the deadline established pursuant to paragraph (e)(1) of this section. (iii) Interaction with appeal process. If a borrower makes an appeal pursuant to paragraph (h) of this section, the borrower's deadline for accepting a loss mitigation option offered pursuant to paragraph (c)(1)(ii) of this section shall be extended until 14 days after the servicer provides the notice required pursuant to paragraph (h)(4) of this section. ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(f) **Obligation ID:** `reg-x-1024.41-f` **Operative duty (lender voice):** > (f): (f) Prohibition on foreclosure referral —(1) Pre-foreclosure review period. A servicer shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process unless: **Verbatim regulator text:** ``` (f) Prohibition on foreclosure referral —(1) Pre-foreclosure review period. A servicer shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process unless: ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(i) **Obligation ID:** `reg-x-1024.41-i` **Operative duty (lender voice):** > (i): (i) A borrower's mortgage loan obligation is more than 120 days delinquent; (ii) The foreclosure is based on a borrower's violation of a due-on-sale clause; or (iii) The servicer is joining the foreclosure action of a superior or subordinate lienholder. (2) Application received before foreclosure re… **Verbatim regulator text:** ``` (i) A borrower's mortgage loan obligation is more than 120 days delinquent; (ii) The foreclosure is based on a borrower's violation of a due-on-sale clause; or (iii) The servicer is joining the foreclosure action of a superior or subordinate lienholder. (2) Application received before foreclosure referral. If a borrower submits a complete loss mitigation application during the pre-foreclosure review period set forth in paragraph (f)(1) of this section or before a servicer has made the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process, a servicer shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process unless: ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(i) **Obligation ID:** `reg-x-1024.41-i` **Operative duty (lender voice):** > (i): (i) The servicer has sent the borrower a notice pursuant to paragraph (c)(1)(ii) of this section that the borrower is not eligible for any loss mitigation option and the appeal process in paragraph (h) of this section is not applicable, the borrower has not requested an appeal within the applicable … **Verbatim regulator text:** ``` (i) The servicer has sent the borrower a notice pursuant to paragraph (c)(1)(ii) of this section that the borrower is not eligible for any loss mitigation option and the appeal process in paragraph (h) of this section is not applicable, the borrower has not requested an appeal within the applicable time period for requesting an appeal, or the borrower's appeal has been denied; (ii) The borrower rejects all loss mitigation options offered by the servicer ; or (iii) The borrower fails to perform under an agreement on a loss mitigation option . ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(g) **Obligation ID:** `reg-x-1024.41-g` **Operative duty (lender voice):** > (g): (g) Prohibition on foreclosure sale. If a borrower submits a complete loss mitigation application after a servicer has made the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process but more than 37 days before a foreclosure sale, a servicer shall not… **Verbatim regulator text:** ``` (g) Prohibition on foreclosure sale. If a borrower submits a complete loss mitigation application after a servicer has made the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process but more than 37 days before a foreclosure sale, a servicer shall not move for foreclosure judgment or order of sale, or conduct a foreclosure sale, unless: (1) The servicer has sent the borrower a notice pursuant to paragraph (c)(1)(ii) of this section that the borrower is not eligible for any loss mitigation option and the appeal process in paragraph (h) of this section is not applicable, the borrower has not requested an appeal within the applicable time period for requesting an appeal, or the borrower's appeal has been denied; (2) The borrower rejects all loss mitigation options offered by the servicer ; or (3) The borrower fails to perform under an agreement on a loss mitigation option . ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(h) **Obligation ID:** `reg-x-1024.41-h` **Operative duty (lender voice):** > (h): (h) Appeal process —(1) Appeal process required for loan modification denials. If a servicer receives a complete loss mitigation application 90 days or more before a foreclosure sale or during the period set forth in paragraph (f) of this section, a servicer shall permit a borrower to appeal the ser… **Verbatim regulator text:** ``` (h) Appeal process —(1) Appeal process required for loan modification denials. If a servicer receives a complete loss mitigation application 90 days or more before a foreclosure sale or during the period set forth in paragraph (f) of this section, a servicer shall permit a borrower to appeal the servicer 's determination to deny a borrower's loss mitigation application for any trial or permanent loan modification program available to the borrower. (2) Deadlines. A servicer shall permit a borrower to make an appeal within 14 days after the servicer provides the offer of a loss mitigation option to the borrower pursuant to paragraph (c)(1)(ii) of this section. (3) Independent evaluation. An appeal shall be reviewed by different personnel than those responsible for evaluating the borrower's complete loss mitigation application . (4) Appeal determination. Within 30 days of a borrower making an appeal, the servicer shall provide a notice to the borrower stating the servicer 's determination of whether the servicer will offer the borrower a loss mitigation option based upon the appeal and, if applicable, how long the borrower has to accept or reject such an offer or a prior offer of a loss mitigation option . A servicer may require that a borrower accept or reject an offer of a loss mitigation option after an appeal no earlier than 14 days after the servicer provides the notice to a borrower. A servicer 's determination under this paragraph is not subject to any further appeal. ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(i) **Obligation ID:** `reg-x-1024.41-i` **Operative duty (lender voice):** > (i): (i) Duplicative requests. A servicer must comply with the requirements of this section for a borrower's loss mitigation application , unless the servicer has previously complied with the requirements of this section for a complete loss mitigation application submitted by the borrower and the borrowe… **Verbatim regulator text:** ``` (i) Duplicative requests. A servicer must comply with the requirements of this section for a borrower's loss mitigation application , unless the servicer has previously complied with the requirements of this section for a complete loss mitigation application submitted by the borrower and the borrower has been delinquent at all times since submitting the prior complete application . ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(j) **Obligation ID:** `reg-x-1024.41-j` **Operative duty (lender voice):** > (j): (j) Small servicer requirements. A small servicer shall be subject to the prohibition on foreclosure referral in paragraph (f)(1) of this section. A small servicer shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process and shall not … **Verbatim regulator text:** ``` (j) Small servicer requirements. A small servicer shall be subject to the prohibition on foreclosure referral in paragraph (f)(1) of this section. A small servicer shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process and shall not move for foreclosure judgment or order of sale, or conduct a foreclosure sale, if a borrower is performing pursuant to the terms of an agreement on a loss mitigation option . ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(k) **Obligation ID:** `reg-x-1024.41-k` **Operative duty (lender voice):** > (k): (k) Servicing transfers —(1) In general —(i) Timing of compliance. Except as provided in paragraphs (k)(2) through (4) of this section, if a transferee servicer acquires the servicing of a mortgage loan for which a loss mitigation application is pending as of the transfer date, the transferee servic… **Verbatim regulator text:** ``` (k) Servicing transfers —(1) In general —(i) Timing of compliance. Except as provided in paragraphs (k)(2) through (4) of this section, if a transferee servicer acquires the servicing of a mortgage loan for which a loss mitigation application is pending as of the transfer date, the transferee servicer must comply with the requirements of this section for that loss mitigation application within the timeframes that were applicable to the transferor servicer based on the date the transferor servicer received the loss mitigation application . All rights and protections under paragraphs (c) through (h) of this section to which a borrower was entitled before a transfer continue to apply notwithstanding the transfer. (ii) Transfer date defined. For purposes of this paragraph (k), the transfer date is the date on which the transferee servicer will begin accepting payments relating to the mortgage loan , as disclosed on the notice of transfer of loan servicing pursuant to § 1024.33(b)(4)(iv) . (2) Acknowledgment notices —(i) Transferee servicer timeframes. If a transferee servicer acquires the servicing of a mortgage loan for which the period to provide the notice required by paragraph (b)(2)(i)(B) of this section has not expired as of the transfer date and the transferor servicer has not provided such notice, the transferee servicer must provide the notice within 10 days (excluding legal public holi days , Satur days , and Sun days ) of the transfer date. (ii) Prohibitions. A transferee servicer that must provide the notice required by paragraph (b)(2)(i)(B) of this section under this paragraph (k)(2): (A) Shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process until a date that is after the reasonable date disclosed to the borrower pursuant to paragraph (b)(2)(ii) of this section, notwithstanding paragraph (f)(1) of this section. For purposes of paragraph (f)(2) of this section, a borrower who submits a complete loss mitigation application on or before the reasonable date disclosed to the borrower pursuant to paragraph (b)(2)(ii) of this section shall be treated as having done so during the pre-foreclosure review period set forth in paragraph (f)(1) of this section. (B) Shall comply with paragraphs (c), (d), and (g) of this section if the borrower submits a complete loss mitigation application to the transferee or transferor servicer 37 or fewer days before the foreclosure sale but on or before the reasonable date disclosed to the borrower pursuant to paragraph (b)(2)(ii) of this section. (3) Complete loss mitigation applications pending at transfer. If a transferee servicer acquires the servicing of a mortgage loan for which a complete loss mitigation application is pending as of the transfer date, the transferee servicer must comply with the applicable requirements of paragraphs (c)(1) and (4) of this section within 30 days of the transfer date. (4) Applications subject to appeal process. If a transferee servicer acquires the servicing of a mortgage loan for which an appeal of a transferor servicer 's determination pursuant to paragraph (h) of this section has not been resolved by the transferor servicer as of the transfer date or is timely filed after the transfer date, the transferee servicer must make a determination on the appeal if it is able to do so or, if it is unable to do so, must treat the appeal as a pending complete loss mitigation application . ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- #### 12 CFR §1024.41(i) **Obligation ID:** `reg-x-1024.41-i` **Operative duty (lender voice):** > (i): (i) Determining appeal. If a transferee servicer is required under this paragraph (k)(4) to make a determination on an appeal, the transferee servicer must complete the determination and provide the notice required by paragraph (h)(4) of this section within 30 days of the transfer date or 30 days of… **Verbatim regulator text:** ``` (i) Determining appeal. If a transferee servicer is required under this paragraph (k)(4) to make a determination on an appeal, the transferee servicer must complete the determination and provide the notice required by paragraph (h)(4) of this section within 30 days of the transfer date or 30 days of the date the borrower made the appeal, whichever is later. (ii) Servicer unable to determine appeal. A transferee servicer that is required to treat a borrower's appeal as a pending complete loss mitigation application under this paragraph (k)(4) must comply with the requirements of this section for such application , including evaluating the borrower for all loss mitigation options available to the borrower from the transferee servicer . For purposes of paragraph (c) or (k)(3) of this section, as applicable, such a pending complete loss mitigation application shall be considered complete as of the date the appeal was received by the transferor servicer or the transferee servicer , whichever occurs first. For purposes of paragraphs (e) through (h) of this section, the transferee servicer must treat such a pending complete loss mitigation application as facially complete under paragraph (c)(2)(iv) as of the date it was first facially complete or complete, as applicable, with respect to the transferor servicer . (5) Pending loss mitigation offers. A transfer does not affect a borrower's ability to accept or reject a loss mitigation option offered under paragraph (c) or (h) of this section. If a transferee servicer acquires the servicing of a mortgage loan for which the borrower's time period under paragraph (e) or (h) of this section for accepting or rejecting a loss mitigation option offered by the transferor servicer has not expired as of the transfer date, the transferee servicer must allow the borrower to accept or reject the offer during the unexpired balance of the applicable time period. [ 78 FR 10876 , Feb. 14, 2013, as amended at 78 FR 60437 , Oct. 1, 2013; 81 FR 72373 , Oct. 19, 2016; 85 FR 39065 , June 30, 2020; 86 FR 34899 , June 30, 2021; 90 FR 20792 , May 16, 2025] CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel Table of Authorities Accessibility About LII Contact us Advertise here Help Terms of use Privacy ``` _Authority_: 12 CFR §1024.41(b)(2)(i) _Source_: _Snapshot_: `5c36d490608d55af` _Fetched_: 2026-05-22T11:32:20Z --- --- # 12 CFR §1024.40 — Continuity of contact **Register slug:** `reg-x-1024.40` **Obligation count:** 5 ## Register description Regulation X §1024.40 requires servicers to maintain policies and procedures reasonably designed to assign personnel to delinquent borrowers, make those personnel available to respond to inquiries and assist with loss mitigation, and ensure those personnel can perform enumerated information-delivery and record-retrieval functions. ## Obligations #### 12 CFR §1024.40(a) **Obligation ID:** `reg-x-1024.40-a` **Operative duty (lender voice):** > (a): (a) In general. A servicer shall maintain policies and procedures that are reasonably designed to achieve the following objectives: (1) Assign personnel to a delinquent borrower by the time the servicer provides the borrower with the written notice required by § 1024.39(b) , but in any event, not la… **Verbatim regulator text:** ``` (a) In general. A servicer shall maintain policies and procedures that are reasonably designed to achieve the following objectives: (1) Assign personnel to a delinquent borrower by the time the servicer provides the borrower with the written notice required by § 1024.39(b) , but in any event, not later than the 45th day of the borrower's delinquency . (2) Make available to a delinquent borrower, via telephone, personnel assigned to the borrower as described in paragraph (a)(1) of this section to respond to the borrower's inquiries, and as applicable, assist the borrower with available loss mitigation options until the borrower has made, without incurring a late charge, two consecutive mortgage payments in accordance with the terms of a permanent loss mitigation agreement. (3) If a borrower contacts the personnel assigned to the borrower as described in paragraph (a)(1) of this section and does not immediately receive a live response from such personnel, ensure that the servicer can provide a live response in a timely manner. ``` _Authority_: 12 CFR §1024.40(a) _Source_: _Snapshot_: `cde74e9b810c3590` _Fetched_: 2026-05-22T11:32:19Z --- #### 12 CFR §1024.40(b) **Obligation ID:** `reg-x-1024.40-b` **Operative duty (lender voice):** > (b): (b) Functions of servicer personnel. A servicer shall maintain policies and procedures reasonably designed to ensure that servicer personnel assigned to a delinquent borrower as described in paragraph (a) of this section perform the following functions: (1) Provide the borrower with accurate informa… **Verbatim regulator text:** ``` (b) Functions of servicer personnel. A servicer shall maintain policies and procedures reasonably designed to ensure that servicer personnel assigned to a delinquent borrower as described in paragraph (a) of this section perform the following functions: (1) Provide the borrower with accurate information about: ``` _Authority_: 12 CFR §1024.40(a) _Source_: _Snapshot_: `cde74e9b810c3590` _Fetched_: 2026-05-22T11:32:19Z --- #### 12 CFR §1024.40(i) **Obligation ID:** `reg-x-1024.40-i` **Operative duty (lender voice):** > (i): (i) Loss mitigation options available to the borrower from the owner or assignee of the borrower's mortgage loan ; (ii) Actions the borrower must take to be evaluated for such loss mitigation options, including actions the borrower must take to submit a complete loss mitigation application , as defi… **Verbatim regulator text:** ``` (i) Loss mitigation options available to the borrower from the owner or assignee of the borrower's mortgage loan ; (ii) Actions the borrower must take to be evaluated for such loss mitigation options, including actions the borrower must take to submit a complete loss mitigation application , as defined in § 1024.41 , and, if applicable, actions the borrower must take to appeal the servicer 's determination to deny a borrower's loss mitigation application for any trial or permanent loan modification program offered by the servicer ; (iii) The status of any loss mitigation application that the borrower has submitted to the servicer ; (iv) The circumstances under which the servicer may make a referral to foreclosure; and ``` _Authority_: 12 CFR §1024.40(a) _Source_: _Snapshot_: `cde74e9b810c3590` _Fetched_: 2026-05-22T11:32:19Z --- #### 12 CFR §1024.40(v) **Obligation ID:** `reg-x-1024.40-v` **Operative duty (lender voice):** > (v): (v) Applicable loss mitigation deadlines established by an owner or assignee of the borrower's mortgage loan or § 1024.41 . (2) Retrieve, in a timely manner: **Verbatim regulator text:** ``` (v) Applicable loss mitigation deadlines established by an owner or assignee of the borrower's mortgage loan or § 1024.41 . (2) Retrieve, in a timely manner: ``` _Authority_: 12 CFR §1024.40(a) _Source_: _Snapshot_: `cde74e9b810c3590` _Fetched_: 2026-05-22T11:32:19Z --- #### 12 CFR §1024.40(i) **Obligation ID:** `reg-x-1024.40-i` **Operative duty (lender voice):** > (i): (i) A complete record of the borrower's payment history; and (ii) All written information the borrower has provided to the servicer , and if applicable, to prior servicers, in connection with a loss mitigation application ; (3) Provide the documents and information identified in paragraph (b)(2) of … **Verbatim regulator text:** ``` (i) A complete record of the borrower's payment history; and (ii) All written information the borrower has provided to the servicer , and if applicable, to prior servicers, in connection with a loss mitigation application ; (3) Provide the documents and information identified in paragraph (b)(2) of this section to other persons required to evaluate a borrower for loss mitigation options made available by the servicer , if applicable; and (4) Provide a delinquent borrower with information about the procedures for submitting a notice of error pursuant to § 1024.35 or an information request pursuant to § 1024.36 . CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel Table of Authorities Accessibility About LII Contact us Advertise here Help Terms of use Privacy ``` _Authority_: 12 CFR §1024.40(a) _Source_: _Snapshot_: `cde74e9b810c3590` _Fetched_: 2026-05-22T11:32:19Z --- --- # 12 CFR §1024.39 — Early intervention requirements for certain borrowers **Register slug:** `reg-x-1024.39` **Obligation count:** 9 ## Register description Regulation X §1024.39 requires servicers to make live contact with delinquent borrowers by the 36th day of delinquency and to provide a written early-intervention notice no later than the 45th day; it also sets partial exemptions for borrowers in bankruptcy and borrowers who have invoked FDCPA §805(c) cease-communication. ## Obligations #### 12 CFR §1024.39(a) **Obligation ID:** `reg-x-1024.39-a` **Operative duty (lender voice):** > (a): (a) Live contact. Except as otherwise provided in this section, a servicer shall establish or make good faith efforts to establish live contact with a delinquent borrower no later than the 36th day of a borrower's delinquency and again no later than 36 days after each payment due date so long as the… **Verbatim regulator text:** ``` (a) Live contact. Except as otherwise provided in this section, a servicer shall establish or make good faith efforts to establish live contact with a delinquent borrower no later than the 36th day of a borrower's delinquency and again no later than 36 days after each payment due date so long as the borrower remains delinquent. Promptly after establishing live contact with a borrower, the servicer shall inform the borrower about the availability of loss mitigation options, if appropriate. ``` _Authority_: 12 CFR §1024.39(a) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(b) **Obligation ID:** `reg-x-1024.39-b` **Operative duty (lender voice):** > (b): (b) Written notice —(1) Notice required. Except as otherwise provided in this section, a servicer shall provide to a delinquent borrower a written notice with the information set forth in paragraph (b)(2) of this section no later than the 45th day of the borrower's delinquency and again no later tha… **Verbatim regulator text:** ``` (b) Written notice —(1) Notice required. Except as otherwise provided in this section, a servicer shall provide to a delinquent borrower a written notice with the information set forth in paragraph (b)(2) of this section no later than the 45th day of the borrower's delinquency and again no later than 45 days after each payment due date so long as the borrower remains delinquent. A servicer is not required to provide the written notice, however, more than once during any 180-day period. If a borrower is 45 days or more delinquent at the end of any 180-day period after the servicer has provided the written notice, a servicer must provide the written notice again no later than 180 days after the provision of the prior written notice. If a borrower is less than 45 days delinquent at the end of any 180-day period after the servicer has provided the written notice, a servicer must provide the written notice again no later than 45 days after the payment due date for which the borrower remains delinquent. (2) Content of the written notice. The notice required by paragraph (b)(1) of this section shall include: ``` _Authority_: 12 CFR §1024.39(a) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(i) **Obligation ID:** `reg-x-1024.39-i` **Operative duty (lender voice):** > (i): (i) A statement encouraging the borrower to contact the servicer ; (ii) The telephone number to access servicer personnel assigned pursuant to § 1024.40(a) and the servicer 's mailing address; (iii) If applicable, a statement providing a brief description of examples of loss mitigation options that … **Verbatim regulator text:** ``` (i) A statement encouraging the borrower to contact the servicer ; (ii) The telephone number to access servicer personnel assigned pursuant to § 1024.40(a) and the servicer 's mailing address; (iii) If applicable, a statement providing a brief description of examples of loss mitigation options that may be available from the servicer ; (iv) If applicable, either application instructions or a statement informing the borrower how to obtain more information about loss mitigation options from the servicer ; and ``` _Authority_: 12 CFR §1024.39(a) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(v) **Obligation ID:** `reg-x-1024.39-v` **Operative duty (lender voice):** > (v): (v) The Web site to access either the Bureau list or the HUD list of homeownership counselors or counseling organizations, and the HUD toll-free telephone number to access homeownership counselors or counseling organizations. (3) Model clauses. Model clauses MS-4(A), MS-4(B), and MS-4(C), in appendi… **Verbatim regulator text:** ``` (v) The Web site to access either the Bureau list or the HUD list of homeownership counselors or counseling organizations, and the HUD toll-free telephone number to access homeownership counselors or counseling organizations. (3) Model clauses. Model clauses MS-4(A), MS-4(B), and MS-4(C), in appendix MS-4 to this part may be used to comply with the requirements of this paragraph (b). ``` _Authority_: 12 CFR §1024.39(a) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(c) **Obligation ID:** `reg-x-1024.39-c` **Operative duty (lender voice):** > (c): (c) Borrowers in bankruptcy —(1) Partial exemption. While any borrower on a mortgage loan is a debtor in bankruptcy under title 11 of the United States Code, a servicer , with regard to that mortgage loan: **Verbatim regulator text:** ``` (c) Borrowers in bankruptcy —(1) Partial exemption. While any borrower on a mortgage loan is a debtor in bankruptcy under title 11 of the United States Code, a servicer , with regard to that mortgage loan: ``` _Authority_: 12 CFR §1024.39(a) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(i) **Obligation ID:** `reg-x-1024.39-i` **Operative duty (lender voice):** > (i): (i) Is exempt from the requirements of paragraph (a) of this section; (ii) Is exempt from the requirements of paragraph (b) of this section if no loss mitigation option is available, or if any borrower on the mortgage loan has provided a notification pursuant to the Fair Debt Collection Practices Ac… **Verbatim regulator text:** ``` (i) Is exempt from the requirements of paragraph (a) of this section; (ii) Is exempt from the requirements of paragraph (b) of this section if no loss mitigation option is available, or if any borrower on the mortgage loan has provided a notification pursuant to the Fair Debt Collection Practices Act (FDCPA) section 805(c) ( 15 U.S.C. 1692c(c) ) with respect to that mortgage loan as referenced in paragraph (d) of this section; and (iii) If the conditions of paragraph (c)(1)(ii) of this section are not met, must comply with the requirements of paragraph (b) of this section, as modified by this paragraph (c)(1)(iii): (A) If a borrower is delinquent when the borrower becomes a debtor in bankruptcy, a servicer must provide the written notice required by paragraph (b) of this section not later than the 45th day after the borrower files a bankruptcy petition under title 11 of the United States Code. If the borrower is not delinquent when the borrower files a bankruptcy petition, but subsequently becomes delinquent while a debtor in bankruptcy, the servicer must provide the written notice not later than the 45th day of the borrower's delinquency . A servicer must comply with these timing requirements regardless of whether the servicer provided the written notice in the preceding 180-day period. (B) The written notice required by paragraph (b) of this section may not contain a request for payment. (C) A servicer is not required to provide the written notice required by paragraph (b) of this section more than once during a single bankruptcy case. (2) Resuming compliance. ``` _Authority_: 12 CFR §1024.39(a) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(i) **Obligation ID:** `reg-x-1024.39-i` **Operative duty (lender voice):** > (i): (i) Except as provided in paragraph (c)(2)(ii) of this section, a servicer that was exempt from paragraphs (a) and (b) of this section pursuant to paragraph (c)(1) of this section must resume compliance with paragraphs (a) and (b) of this section after the next payment due date that follows the earl… **Verbatim regulator text:** ``` (i) Except as provided in paragraph (c)(2)(ii) of this section, a servicer that was exempt from paragraphs (a) and (b) of this section pursuant to paragraph (c)(1) of this section must resume compliance with paragraphs (a) and (b) of this section after the next payment due date that follows the earliest of the following events: (A) The bankruptcy case is dismissed; (B) The bankruptcy case is closed; and (C) The borrower reaffirms personal liability for the mortgage loan . (ii) With respect to a mortgage loan for which the borrower has discharged personal liability pursuant to 11 U.S.C. 727 , 1141 , 1228 , or 1328 , a servicer: (A) Is not required to resume compliance with paragraph (a) of this section; and (B) Must resume compliance with paragraph (b) of this section if the borrower has made any partial or periodic payment on the mortgage loan after the commencement of the borrower's bankruptcy case. ``` _Authority_: 12 CFR §1024.39(a) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(d) **Obligation ID:** `reg-x-1024.39-d` **Operative duty (lender voice):** > (d): (d) Fair Debt Collection Practices Act — partial exemption. With regard to a mortgage loan for which any borrower has provided a notification pursuant to the Fair Debt Collection Practices Act (FDCPA) section 805(c) ( 15 U.S.C. 1692c(c) ), a servicer subject to the FDCPA with respect to that borrowe… **Verbatim regulator text:** ``` (d) Fair Debt Collection Practices Act — partial exemption. With regard to a mortgage loan for which any borrower has provided a notification pursuant to the Fair Debt Collection Practices Act (FDCPA) section 805(c) ( 15 U.S.C. 1692c(c) ), a servicer subject to the FDCPA with respect to that borrower's loan: (1) Is exempt from the requirements of paragraph (a) of this section; (2) Is exempt from the requirements of paragraph (b) of this section if no loss mitigation option is available, or while any borrower on that mortgage loan is a debtor in bankruptcy under title 11 of the United States Code as referenced in paragraph (c) of this section; and (3) If the conditions of paragraph (d)(2) of this section are not met, must comply with the requirements of paragraph (b) of this section, as modified by this paragraph (d)(3): ``` _Authority_: 12 CFR §1024.39(a) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- #### 12 CFR §1024.39(i) **Obligation ID:** `reg-x-1024.39-i` **Operative duty (lender voice):** > (i): (i) In addition to the information required pursuant to paragraph (b)(2) of this section, the written notice must include a statement that the servicer may or intends to invoke its specified remedy of foreclosure. Model clause MS-4(D) in appendix MS-4 to this part may be used to comply with this req… **Verbatim regulator text:** ``` (i) In addition to the information required pursuant to paragraph (b)(2) of this section, the written notice must include a statement that the servicer may or intends to invoke its specified remedy of foreclosure. Model clause MS-4(D) in appendix MS-4 to this part may be used to comply with this requirement. (ii) The written notice may not contain a request for payment. (iii) A servicer is prohibited from providing the written notice more than once during any 180-day period. If a borrower is 45 days or more delinquent at the end of any 180-day period after the servicer has provided the written notice, a servicer must provide the written notice again no later than 190 days after the provision of the prior written notice. If a borrower is less than 45 days delinquent at the end of any 180-day period after the servicer has provided the written notice, a servicer must provide the written notice again no later than 45 days after the payment due date for which the borrower remains delinquent or 190 days after the provision of the prior written notice, whichever is later. [ 78 FR 10876 , Feb. 14, 2013, as amended at 78 FR 60437 , Oct. 1, 2013; 78 FR 63004 , Oct. 23, 2013; 81 FR 72373 , Oct. 19, 2016; 82 FR 47957 , Oct. 16, 2017; 86 FR 34899 , June 30, 2021; 90 FR 20792 , May 16, 2025] Fair Debt Collection Practices Act CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel Table of Authorities Accessibility About LII Contact us Advertise here Help Terms of use Privacy ``` _Authority_: 12 CFR §1024.39(a) _Source_: _Snapshot_: `b07433ccd2b6a743` _Fetched_: 2026-05-22T11:32:18Z --- --- # 12 CFR §1024.38 — General servicing policies, procedures, and requirements **Register slug:** `reg-x-1024.38` **Obligation count:** 11 ## Register description Regulation X §1024.38 requires mortgage servicers to maintain reasonable policies and procedures designed to achieve enumerated servicing objectives, plus standard record-retention and servicing-file requirements. ## Obligations #### 12 CFR §1024.38(a) **Obligation ID:** `reg-x-1024.38-a` **Operative duty (lender voice):** > (a): (a) Reasonable policies and procedures. A servicer shall maintain policies and procedures that are reasonably designed to achieve the objectives set forth in paragraph (b) of this section. **Verbatim regulator text:** ``` (a) Reasonable policies and procedures. A servicer shall maintain policies and procedures that are reasonably designed to achieve the objectives set forth in paragraph (b) of this section. ``` _Authority_: 12 CFR §1024.38(a) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(b) **Obligation ID:** `reg-x-1024.38-b` **Operative duty (lender voice):** > (b): (b) Objectives —(1) Accessing and providing timely and accurate information. The policies and procedures required by paragraph (a) of this section shall be reasonably designed to ensure that the servicer can: **Verbatim regulator text:** ``` (b) Objectives —(1) Accessing and providing timely and accurate information. The policies and procedures required by paragraph (a) of this section shall be reasonably designed to ensure that the servicer can: ``` _Authority_: 12 CFR §1024.38(a) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(i) **Obligation ID:** `reg-x-1024.38-i` **Operative duty (lender voice):** > (i): (i) Provide accurate and timely disclosures to a borrower as required by this subpart or other applicable law; (ii) Investigate, respond to, and, as appropriate, make corrections in response to complaints asserted by a borrower; (iii) Provide a borrower with accurate and timely information and docum… **Verbatim regulator text:** ``` (i) Provide accurate and timely disclosures to a borrower as required by this subpart or other applicable law; (ii) Investigate, respond to, and, as appropriate, make corrections in response to complaints asserted by a borrower; (iii) Provide a borrower with accurate and timely information and documents in response to the borrower's requests for information with respect to the borrower's mortgage loan ; (iv) Provide owners or assignees of mortgage loans with accurate and current information and documents about all mortgage loans they own; ``` _Authority_: 12 CFR §1024.38(a) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(v) **Obligation ID:** `reg-x-1024.38-v` **Operative duty (lender voice):** > (v): (v) Submit documents or filings required for a foreclosure process, including documents or filings required by a court of competent jurisdiction, that reflect accurate and current information and that comply with applicable law; and (vi) (A) Upon receiving notice of the death of a borrower or of any… **Verbatim regulator text:** ``` (v) Submit documents or filings required for a foreclosure process, including documents or filings required by a court of competent jurisdiction, that reflect accurate and current information and that comply with applicable law; and (vi) (A) Upon receiving notice of the death of a borrower or of any transfer of the property securing a mortgage loan , promptly facilitate communication with any potential or confirmed successors in interest regarding the property; (B) Upon receiving notice of the existence of a potential successor in interest , promptly determine the documents the servicer reasonably requires to confirm that person 's identity and ownership interest in the property and promptly provide to the potential successor in interest a description of those documents and how the person may submit a written request under § 1024.36(i) (including the appropriate address); and (C) Upon the receipt of such documents, promptly make a confirmation determination and promptly notify the person , as applicable, that the servicer has confirmed the person 's status, has determined that additional documents are required (and what those documents are), or has determined that the person is not a successor in interest . (2) Properly evaluating loss mitigation applications. The policies and procedures required by paragraph (a) of this section shall be reasonably designed to ensure that the servicer can: ``` _Authority_: 12 CFR §1024.38(a) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(i) **Obligation ID:** `reg-x-1024.38-i` **Operative duty (lender voice):** > (i): (i) Provide accurate information regarding loss mitigation options available to a borrower from the owner or assignee of the borrower's mortgage loan ; (ii) Identify with specificity all loss mitigation options for which borrowers may be eligible pursuant to any requirements established by an owner … **Verbatim regulator text:** ``` (i) Provide accurate information regarding loss mitigation options available to a borrower from the owner or assignee of the borrower's mortgage loan ; (ii) Identify with specificity all loss mitigation options for which borrowers may be eligible pursuant to any requirements established by an owner or assignee of the borrower's mortgage loan ; (iii) Provide prompt access to all documents and information submitted by a borrower in connection with a loss mitigation option to servicer personnel that are assigned to assist the borrower pursuant to § 1024.40 ; (iv) Identify documents and information that a borrower is required to submit to complete a loss mitigation application and facilitate compliance with the notice required pursuant to § 1024.41(b)(2)(i)(B) ; and ``` _Authority_: 12 CFR §1024.38(a) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(v) **Obligation ID:** `reg-x-1024.38-v` **Operative duty (lender voice):** > (v): (v) Properly evaluate a borrower who submits an application for a loss mitigation option for all loss mitigation options for which the borrower may be eligible pursuant to any requirements established by the owner or assignee of the borrower's mortgage loan and, where applicable, in accordance with … **Verbatim regulator text:** ``` (v) Properly evaluate a borrower who submits an application for a loss mitigation option for all loss mitigation options for which the borrower may be eligible pursuant to any requirements established by the owner or assignee of the borrower's mortgage loan and, where applicable, in accordance with the requirements of § 1024.41 . (vi) Promptly identify and obtain documents or information not in the borrower's control that the servicer requires to determine which loss mitigation options, if any, to offer the borrower in accordance with the requirements of § 1024.41(c)(4) . (3) Facilitating oversight of, and compliance by, service providers. The policies and procedures required by paragraph (a) of this section shall be reasonably designed to ensure that the servicer can: ``` _Authority_: 12 CFR §1024.38(a) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(i) **Obligation ID:** `reg-x-1024.38-i` **Operative duty (lender voice):** > (i): (i) Provide appropriate servicer personnel with access to accurate and current documents and information reflecting actions performed by service providers; (ii) Facilitate periodic reviews of service providers , including by providing appropriate servicer personnel with documents and information nec… **Verbatim regulator text:** ``` (i) Provide appropriate servicer personnel with access to accurate and current documents and information reflecting actions performed by service providers; (ii) Facilitate periodic reviews of service providers , including by providing appropriate servicer personnel with documents and information necessary to audit compliance by service providers with the servicer 's contractual obligations and applicable law; and (iii) Facilitate the sharing of accurate and current information regarding the status of any evaluation of a borrower's loss mitigation application and the status of any foreclosure proceeding among appropriate servicer personnel, including any personnel assigned to a borrower's mortgage loan account as described in § 1024.40 , and appropriate service provider personnel, including service provider personnel responsible for handling foreclosure proceedings. (4) Facilitating transfer of information during servicing transfers. The policies and procedures required by paragraph (a) of this section shall be reasonably designed to ensure that the servicer can: ``` _Authority_: 12 CFR §1024.38(a) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(i) **Obligation ID:** `reg-x-1024.38-i` **Operative duty (lender voice):** > (i): (i) As a transferor servicer , timely transfer all information and documents in the possession or control of the servicer relating to a transferred mortgage loan to a transferee servicer in a form and manner that ensures the accuracy of the information and documents transferred and that enables a tr… **Verbatim regulator text:** ``` (i) As a transferor servicer , timely transfer all information and documents in the possession or control of the servicer relating to a transferred mortgage loan to a transferee servicer in a form and manner that ensures the accuracy of the information and documents transferred and that enables a transferee servicer to comply with the terms of the transferee servicer 's obligations to the owner or assignee of the mortgage loan and applicable law; and (ii) As a transferee servicer , identify necessary documents or information that may not have been transferred by a transferor servicer and obtain such documents from the transferor servicer . (iii) For the purposes of this paragraph (b)(4), transferee servicer means a servicer , including a master servicer or a subservicer , that performs or will perform servicing of a mortgage loan and transferor servicer means a servicer , including a master servicer or a subservicer , that transfers or will transfer the servicing of a mortgage loan . (5) Informing borrowers of the written error resolution and information request procedures. The policies and procedures required by paragraph (a) of this section shall be reasonably designed to ensure that the servicer informs borrowers of the procedures for submitting written notices of error set forth in § 1024.35 and written information requests set forth in § 1024.36. ``` _Authority_: 12 CFR §1024.38(a) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(c) **Obligation ID:** `reg-x-1024.38-c` **Operative duty (lender voice):** > (c): (c) Standard requirements —(1) Record retention. A servicer shall retain records that document actions taken with respect to a borrower's mortgage loan account until one year after the date a mortgage loan is discharged or servicing of a mortgage loan is transferred by the servicer to a transferee s… **Verbatim regulator text:** ``` (c) Standard requirements —(1) Record retention. A servicer shall retain records that document actions taken with respect to a borrower's mortgage loan account until one year after the date a mortgage loan is discharged or servicing of a mortgage loan is transferred by the servicer to a transferee servicer . (2) Servicing file. A servicer shall maintain the following documents and data on each mortgage loan account serviced by the servicer in a manner that facilitates compiling such documents and data into a servicing file within five days: ``` _Authority_: 12 CFR §1024.38(a) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(i) **Obligation ID:** `reg-x-1024.38-i` **Operative duty (lender voice):** > (i): (i) A schedule of all transactions credited or debited to the mortgage loan account, including any escrow account as defined in § 1024.17(b) and any suspense account; (ii) A copy of the security instrument that establishes the lien securing the mortgage loan ; (iii) Any notes created by servicer per… **Verbatim regulator text:** ``` (i) A schedule of all transactions credited or debited to the mortgage loan account, including any escrow account as defined in § 1024.17(b) and any suspense account; (ii) A copy of the security instrument that establishes the lien securing the mortgage loan ; (iii) Any notes created by servicer personnel reflecting communications with the borrower about the mortgage loan account; (iv) To the extent applicable, a report of the data fields relating to the borrower's mortgage loan account created by the servicer 's electronic systems in connection with servicing practices; and ``` _Authority_: 12 CFR §1024.38(a) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- #### 12 CFR §1024.38(v) **Obligation ID:** `reg-x-1024.38-v` **Operative duty (lender voice):** > (v): (v) Copies of any information or documents provided by the borrower to the servicer in accordance with the procedures set forth in § 1024.35 or § 1024.41 . [ 78 FR 10876 , Feb. 14, 2013, as amended at 81 FR 72372 , Oct. 19, 2016] CFR Toolbox Law about... Articles from Wex Table of Popular Names Para… **Verbatim regulator text:** ``` (v) Copies of any information or documents provided by the borrower to the servicer in accordance with the procedures set forth in § 1024.35 or § 1024.41 . [ 78 FR 10876 , Feb. 14, 2013, as amended at 81 FR 72372 , Oct. 19, 2016] CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel Table of Authorities Accessibility About LII Contact us Advertise here Help Terms of use Privacy ``` _Authority_: 12 CFR §1024.38(a) _Source_: _Snapshot_: `e798251e6d65500d` _Fetched_: 2026-05-22T11:32:17Z --- --- # 12 CFR §1024.37 — Force-placed insurance **Register slug:** `reg-x-1024.37` **Obligation count:** 18 ## Register description Regulation X §1024.37 sets requirements before [LENDER] may assess a borrower for force-placed hazard insurance: reasonable basis, 45-day initial notice, 15-day reminder notice (delivered no sooner than 30 days after the initial notice), 45-day renewal notice, mandatory cancellation and refund within 15 days of evidence of borrower coverage, bona-fide-and-reasonable charge limitation. ## Obligations #### 12 CFR §1024.37(a) **Obligation ID:** `reg-x-1024.37-a` **Operative duty (lender voice):** > (a): (a) Definition of force-placed insurance —(1) In general. For the purposes of this section, the term “force-placed insurance” means hazard insurance obtained by a servicer on behalf of the owner or assignee of a mortgage loan that insures the property securing such loan. (2) Types of insurance not c… **Verbatim regulator text:** ``` (a) Definition of force-placed insurance —(1) In general. For the purposes of this section, the term “force-placed insurance” means hazard insurance obtained by a servicer on behalf of the owner or assignee of a mortgage loan that insures the property securing such loan. (2) Types of insurance not considered force-placed insurance. The following insurance does not constitute “force-placed insurance” under this section: ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(i) **Obligation ID:** `reg-x-1024.37-i` **Operative duty (lender voice):** > (i): (i) Hazard insurance required by the Flood Disaster Protection Act of 1973 . (ii) Hazard insurance obtained by a borrower but renewed by the borrower's servicer as described in § 1024.17(k)(1) , (2), or (5). (iii) Hazard insurance obtained by a borrower but renewed by the borrower's servicer at its … **Verbatim regulator text:** ``` (i) Hazard insurance required by the Flood Disaster Protection Act of 1973 . (ii) Hazard insurance obtained by a borrower but renewed by the borrower's servicer as described in § 1024.17(k)(1) , (2), or (5). (iii) Hazard insurance obtained by a borrower but renewed by the borrower's servicer at its discretion, if the borrower agrees. ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(b) **Obligation ID:** `reg-x-1024.37-b` **Operative duty (lender voice):** > (b): (b) Basis for charging borrower for force-placed insurance. A servicer may not assess on a borrower a premium charge or fee related to force-placed insurance unless the servicer has a reasonable basis to believe that the borrower has failed to comply with the mortgage loan contract's requirement to … **Verbatim regulator text:** ``` (b) Basis for charging borrower for force-placed insurance. A servicer may not assess on a borrower a premium charge or fee related to force-placed insurance unless the servicer has a reasonable basis to believe that the borrower has failed to comply with the mortgage loan contract's requirement to maintain hazard insurance . ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(c) **Obligation ID:** `reg-x-1024.37-c` **Operative duty (lender voice):** > (c): (c) Requirements before charging borrower for force-placed insurance —(1) In general. Before a servicer assesses on a borrower any premium charge or fee related to force-placed insurance, the servicer must: **Verbatim regulator text:** ``` (c) Requirements before charging borrower for force-placed insurance —(1) In general. Before a servicer assesses on a borrower any premium charge or fee related to force-placed insurance, the servicer must: ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(i) **Obligation ID:** `reg-x-1024.37-i` **Operative duty (lender voice):** > (i): (i) Deliver to a borrower or place in the mail a written notice containing the information required by paragraph (c)(2) of this section at least 45 days before a servicer assesses on a borrower such charge or fee; (ii) Deliver to the borrower or place in the mail a written notice in accordance with … **Verbatim regulator text:** ``` (i) Deliver to a borrower or place in the mail a written notice containing the information required by paragraph (c)(2) of this section at least 45 days before a servicer assesses on a borrower such charge or fee; (ii) Deliver to the borrower or place in the mail a written notice in accordance with paragraph (d)(1) of this section; and (iii) By the end of the 15-day period beginning on the date the written notice described in paragraph (c)(1)(ii) of this section was delivered to the borrower or placed in the mail, not have received, from the borrower or otherwise, evidence demonstrating that the borrower has had in place, continuously, hazard insurance coverage that complies with the loan contract's requirements to maintain hazard insurance . (2) Content of notice. The notice required by paragraph (c)(1)(i) of this section shall set forth the following information: ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(i) **Obligation ID:** `reg-x-1024.37-i` **Operative duty (lender voice):** > (i): (i) The date of the notice; (ii) The servicer 's name and mailing address; (iii) The borrower's name and mailing address; (iv) A statement that requests the borrower to provide hazard insurance information for the borrower's property and identifies the property by its physical address; **Verbatim regulator text:** ``` (i) The date of the notice; (ii) The servicer 's name and mailing address; (iii) The borrower's name and mailing address; (iv) A statement that requests the borrower to provide hazard insurance information for the borrower's property and identifies the property by its physical address; ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(v) **Obligation ID:** `reg-x-1024.37-v` **Operative duty (lender voice):** > (v): (v) A statement that: (A) The borrower's hazard insurance is expiring, has expired, or provides insufficient coverage, as applicable; (B) The servicer does not have evidence that the borrower has hazard insurance coverage past the expiration date or evidence that the borrower has hazard insurance th… **Verbatim regulator text:** ``` (v) A statement that: (A) The borrower's hazard insurance is expiring, has expired, or provides insufficient coverage, as applicable; (B) The servicer does not have evidence that the borrower has hazard insurance coverage past the expiration date or evidence that the borrower has hazard insurance that provides sufficient coverage, as applicable; and (C) If applicable, identifies the type of hazard insurance for which the servicer lacks evidence of coverage; (vi) A statement that hazard insurance is required on the borrower's property, and that the servicer has purchased or will purchase, as applicable, such insurance at the borrower's expense; (vii) A statement requesting the borrower to promptly provide the servicer with insurance information; (viii) A description of the requested insurance information and how the borrower may provide such information, and if applicable, a statement that the requested information must be in writing; (ix) A statement that insurance the servicer has purchased or purchases: (A) May cost significantly more than hazard insurance purchased by the borrower; (B) Not provide as much coverage as hazard insurance purchased by the borrower; ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(x) **Obligation ID:** `reg-x-1024.37-x` **Operative duty (lender voice):** > (x): (x) The servicer 's telephone number for borrower inquiries; and (xi) If applicable, a statement advising the borrower to review additional information provided in the same transmittal. (3) Format. A servicer must set the information required by paragraphs (c)(2)(iv), (vi), and (ix)(A) and (B) in bo… **Verbatim regulator text:** ``` (x) The servicer 's telephone number for borrower inquiries; and (xi) If applicable, a statement advising the borrower to review additional information provided in the same transmittal. (3) Format. A servicer must set the information required by paragraphs (c)(2)(iv), (vi), and (ix)(A) and (B) in bold text, except that the information about the physical address of the borrower's property required by paragraph (c)(2)(iv) of this section may be set in regular text. A servicer may use form MS-3A in appendix MS-3 of this part to comply with the requirements of paragraphs (c)(1)(i) and (2) of this section. (4) Additional information. Except for the mortgage loan account number, a servicer may not include any information other than information required by paragraph (c)(2) of this section in the written notice required by paragraph (c)(1)(i) of this section. However, a servicer may provide such additional information to a borrower on separate pieces of paper in the same transmittal. ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(d) **Obligation ID:** `reg-x-1024.37-d` **Operative duty (lender voice):** > (d): (d) Reminder notice —(1) In general. The notice required by paragraph (c)(1)(ii) of this section shall be delivered to the borrower or placed in the mail at least 15 days before a servicer assesses on a borrower a premium charge or fee related to force-placed insurance. A servicer may not deliver to… **Verbatim regulator text:** ``` (d) Reminder notice —(1) In general. The notice required by paragraph (c)(1)(ii) of this section shall be delivered to the borrower or placed in the mail at least 15 days before a servicer assesses on a borrower a premium charge or fee related to force-placed insurance. A servicer may not deliver to a borrower or place in the mail the notice required by paragraph (c)(1)(ii) of this section until at least 30 days after delivering to the borrower or placing in the mail the written notice required by paragraph (c)(1)(i) of this section. (2) Content of the reminder notice —(i) Servicer receiving no insurance information. A servicer that receives no hazard insurance information after delivering to the borrower or placing in the mail the notice required by paragraph (c)(1)(i) of this section must set forth in the notice required by paragraph (c)(1)(ii) of this section: (A) The date of the notice; (B) A statement that the notice is the second and final notice; (C) The information required by paragraphs (c)(2)(ii) through (xi) of this section; and (D) The cost of the force-placed insurance, stated as an annual premium, except if a servicer does not know the cost of force-placed insurance, a reasonable estimate shall be disclosed and identified as such. (ii) Servicer lacking evidence of continuous coverage. A servicer that has received hazard insurance information after delivering to a borrower or placing in the mail the notice required by paragraph (c)(1)(i) of this section, but has not received, from the borrower or otherwise, evidence demonstrating that the borrower has had sufficient hazard insurance coverage in place continuously, must set forth in the notice required by paragraph (c)(1)(ii) of this section the following information: (A) The date of the notice; (B) The information required by paragraphs (c)(2)(ii) through (iv) and (ix) through (xi) and (d)(2)(i)(B) and (D) of this section; (C) A statement that the servicer has received the hazard insurance information that the borrower provided; (D) A statement that requests the borrower to provide the information that is missing; (E) A statement that the borrower will be charged for insurance the servicer has purchased or purchases for the period of time during which the servicer is unable to verify coverage; (3) Format. A servicer must set the information required by paragraphs (d)(2)(i)(B) and (D) of this section in bold text. The requirements of paragraph (c)(3) of this section apply to the information required by paragraph (d)(2)(i)(C) of this section. A servicer may use form MS-3B in appendix MS-3 of this part to comply with the requirements of paragraphs (d)(1) and (d)(2)(i) of this section. A servicer may use form MS-3C in appendix MS-3 of this part to comply with the requirements of paragraphs (d)(1) and (d)(2)(ii) of this section. (4) Additional information. Except for the borrower's mortgage loan account number, a servicer may not include any information other than information required by paragraph (d)(2)(i) or (ii) of this section, as applicable, in the written notice required by paragraph (c)(1)(ii) of this section. However, a servicer may provide such additional information to a borrower on separate pieces of paper in the same transmittal. (5) Updating notice with borrower information. If a servicer receives new information about a borrower's hazard insurance after a written notice required by paragraph (c)(1)(ii) of this section has been put into production, the servicer is not required to update such notice based on the new information so long as the notice was put into production a reasonable time prior to the servicer delivering the notice to the borrower or placing the notice in the mail. ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(e) **Obligation ID:** `reg-x-1024.37-e` **Operative duty (lender voice):** > (e): (e) Renewing or replacing force-placed insurance —(1) In general. Before a servicer assesses on a borrower a premium charge or fee related to renewing or replacing existing force-placed insurance, a servicer must: **Verbatim regulator text:** ``` (e) Renewing or replacing force-placed insurance —(1) In general. Before a servicer assesses on a borrower a premium charge or fee related to renewing or replacing existing force-placed insurance, a servicer must: ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(i) **Obligation ID:** `reg-x-1024.37-i` **Operative duty (lender voice):** > (i): (i) Deliver to the borrower or place in the mail a written notice containing the information set forth in paragraph (e)(2) of this section at least 45 days before assessing on a borrower such charge or fee; and (ii) By the end of the 45-day period beginning on the date the written notice required by… **Verbatim regulator text:** ``` (i) Deliver to the borrower or place in the mail a written notice containing the information set forth in paragraph (e)(2) of this section at least 45 days before assessing on a borrower such charge or fee; and (ii) By the end of the 45-day period beginning on the date the written notice required by paragraph (e)(1)(i) of this section was delivered to the borrower or placed in the mail, not have received, from the borrower or otherwise, evidence demonstrating that the borrower has purchased hazard insurance coverage that complies with the loan contract's requirements to maintain hazard insurance . (iii) Charging a borrower before end of notice period. Notwithstanding paragraphs (e)(1)(i) and (ii) of this section, if not prohibited by State or other applicable law, if a servicer has renewed or replaced existing force-placed insurance and receives evidence demonstrating that the borrower lacked insurance coverage for some period of time following the expiration of the existing force-placed insurance (including during the notice period prescribed by paragraph (e)(1) of this section), the servicer may, promptly upon receiving such evidence, assess on the borrower a premium charge or fee related to renewing or replacing existing force-placed insurance for that period of time. (2) Content of renewal notice. The notice required by paragraph (e)(1)(i) of this section shall set forth the following information: ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(i) **Obligation ID:** `reg-x-1024.37-i` **Operative duty (lender voice):** > (i): (i) The date of the notice; (ii) The servicer 's name and mailing address; (iii) The borrower's name and mailing address; (iv) A statement that requests the borrower to update the hazard insurance information for the borrower's property and identifies the borrower's property by its physical address; **Verbatim regulator text:** ``` (i) The date of the notice; (ii) The servicer 's name and mailing address; (iii) The borrower's name and mailing address; (iv) A statement that requests the borrower to update the hazard insurance information for the borrower's property and identifies the borrower's property by its physical address; ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(v) **Obligation ID:** `reg-x-1024.37-v` **Operative duty (lender voice):** > (v): (v) A statement that the servicer previously purchased insurance on the borrower's property and assessed the cost of the insurance to the borrower because the servicer did not have evidence that the borrower had hazard insurance coverage for the property; (vi) A statement that: (A) The insurance the… **Verbatim regulator text:** ``` (v) A statement that the servicer previously purchased insurance on the borrower's property and assessed the cost of the insurance to the borrower because the servicer did not have evidence that the borrower had hazard insurance coverage for the property; (vi) A statement that: (A) The insurance the servicer purchased previously has expired or is expiring, as applicable; and (B) Because hazard insurance is required on the borrower's property, the servicer intends to maintain insurance on the property by renewing or replacing the insurance it previously purchased; (vii) A statement informing the borrower: (A) That insurance the servicer purchases may cost significantly more than hazard insurance purchased by the borrower; (B) That such insurance may not provide as much coverage as hazard insurance purchased by the borrower; and (C) The cost of the force-placed insurance, stated as an annual premium, except if a servicer does not know the cost of force-placed insurance, a reasonable estimate shall be disclosed and identified as such. (viii) A statement that if the borrower purchases hazard insurance , the borrower should promptly provide the servicer with insurance information. (ix) A description of the requested insurance information and how the borrower may provide such information, and if applicable, a statement that the requested information must be in writing; ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(x) **Obligation ID:** `reg-x-1024.37-x` **Operative duty (lender voice):** > (x): (x) The servicer 's telephone number for borrower inquiries; and (xi) If applicable, a statement advising a borrower to review additional information provided in the same transmittal. (3) Format. A servicer must set the information required by paragraphs (e)(2)(iv), (vi)(B), and (vii)(A) through (C)… **Verbatim regulator text:** ``` (x) The servicer 's telephone number for borrower inquiries; and (xi) If applicable, a statement advising a borrower to review additional information provided in the same transmittal. (3) Format. A servicer must set the information required by paragraphs (e)(2)(iv), (vi)(B), and (vii)(A) through (C) of this section in bold text, except that the information about the physical address of the borrower's property required by paragraph (e)(2)(iv) may be set in regular text. A servicer may use form MS-3D in appendix MS-3 of this part to comply with the requirements of paragraphs (e)(1)(i) and (2) of this section. (4) Additional information. Except for the borrower's mortgage loan account number, a servicer may not include any information other than information required by paragraph (e)(2) of this section in the written notice required by paragraph (e)(1) of this section. However, a servicer may provide such additional information to a borrower on separate pieces of paper in the same transmittal. (5) Frequency of renewal notices. Before each anniversary of a servicer purchasing force-placed insurance on a borrower's property, the servicer shall deliver to the borrower or place in the mail the written notice required by paragraph (e)(1) of this section. A servicer is not required to provide the written notice required by paragraph (e)(1) of this section more than once a year. ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(f) **Obligation ID:** `reg-x-1024.37-f` **Operative duty (lender voice):** > (f): (f) Mailing the notices. If a servicer mails a written notice required by paragraphs (c)(1)(i), (c)(1)(ii), or (e)(1) of this section, the servicer must use a class of mail not less than first-class mail. **Verbatim regulator text:** ``` (f) Mailing the notices. If a servicer mails a written notice required by paragraphs (c)(1)(i), (c)(1)(ii), or (e)(1) of this section, the servicer must use a class of mail not less than first-class mail. ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(g) **Obligation ID:** `reg-x-1024.37-g` **Operative duty (lender voice):** > (g): (g) Cancellation of force-placed insurance. Within 15 days of receiving, from the borrower or otherwise, evidence demonstrating that the borrower has had in place hazard insurance coverage that complies with the loan contract's requirements to maintain hazard insurance , a servicer must: (1) Cancel … **Verbatim regulator text:** ``` (g) Cancellation of force-placed insurance. Within 15 days of receiving, from the borrower or otherwise, evidence demonstrating that the borrower has had in place hazard insurance coverage that complies with the loan contract's requirements to maintain hazard insurance , a servicer must: (1) Cancel the force-placed insurance the servicer purchased to insure the borrower's property; and (2) Refund to such borrower all force-placed insurance premium charges and related fees paid by such borrower for any period of overlapping insurance coverage and remove from the borrower's account all force-placed insurance charges and related fees for such period that the servicer has assessed to the borrower. ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(h) **Obligation ID:** `reg-x-1024.37-h` **Operative duty (lender voice):** > (h): (h) Limitations on force-placed insurance charges —(1) In general. Except for charges subject to State regulation as the business of insurance and charges authorized by the Flood Disaster Protection Act of 1973 , all charges related to force-placed insurance assessed to a borrower by or through the … **Verbatim regulator text:** ``` (h) Limitations on force-placed insurance charges —(1) In general. Except for charges subject to State regulation as the business of insurance and charges authorized by the Flood Disaster Protection Act of 1973 , all charges related to force-placed insurance assessed to a borrower by or through the servicer must be bona fide and reasonable. (2) Bona fide and reasonable charge. A bona fide and reasonable charge is a charge for a service actually performed that bears a reasonable relationship to the servicer 's cost of providing the service, and is not otherwise prohibited by applicable law. ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- #### 12 CFR §1024.37(i) **Obligation ID:** `reg-x-1024.37-i` **Operative duty (lender voice):** > (i): (i) Relationship to Flood Disaster Protection Act of 1973 . If permitted by regulation under section 102(e) of the Flood Disaster Protection Act of 1973 , a servicer subject to the requirements of this section may deliver to the borrower or place in the mail any notice required by this section and t… **Verbatim regulator text:** ``` (i) Relationship to Flood Disaster Protection Act of 1973 . If permitted by regulation under section 102(e) of the Flood Disaster Protection Act of 1973 , a servicer subject to the requirements of this section may deliver to the borrower or place in the mail any notice required by this section and the notice required by section 102(e) of the Flood Disaster Protection Act of 1973 on separate pieces of paper in the same transmittal. [ 78 FR 10876 , Feb. 14, 2013, as amended at 81 FR 72372 , Oct. 19, 2016] Flood Disaster Protection Act of 1973 CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel Table of Authorities Accessibility About LII Contact us Advertise here Help Terms of use Privacy ``` _Authority_: 12 CFR §1024.37(b) _Source_: _Snapshot_: `a61fbf1195547c30` _Fetched_: 2026-05-22T18:26:45Z --- ---