HUD Mortgagee Letter 2025-21

hud-ml-2025-21

HUD Mortgagee Letter 2025-21. See obligation entries for operative requirements and verbatim primary-source citations.

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source:
  type: regulation
  id: hud-ml-2025-21
  authority: HUD Mortgagee Letter 2025-21
  description: |
    HUD Mortgagee Letter 2025-21. See obligation entries for operative
    requirements and verbatim primary-source citations.
obligations:
  - id: hud-ml-2025-21-90-day-loss-mit-evaluation
    canonical_id: hud-ml-2025-21-90-day-loss-mit-evaluation
    section: HUD ML 2025-21 — Loss Mitigation Program 90-Day Review (III.A.2.h.iii(B))
    description: |
      For each FHA-insured forward Mortgage in Default, [LENDER] must complete
      an evaluation of the Defaulted Mortgage for appropriate Loss Mitigation
      Options before four monthly installments are due and unpaid, and send a
      written Notice to Borrower (III.A.2.h.vi) with the determination of
      eligibility.
    type: do
    audit_question: For every FHA-insured forward Mortgage in Default, can [LENDER] evidence completion of the loss-mit evaluation before four monthly installments became due and unpaid, and delivery of the written Notice to Borrower with the determination of eligibility?
    program_review: Do the P&Ps ensure each defaulted forward Mortgage is evaluated for loss-mit options before four monthly installments are due and unpaid, with a written Notice to Borrower (III.A.2.h.vi) stating the eligibility determination?
    file_review: Pull defaulted forward-Mortgage files; confirm the evaluation completed before the 4th unpaid installment and the written Notice to Borrower with the determination.
    judgment: false
    feeds:
      - hud-ml-2025-21-permanent-home-retention-documents-15-days
    workflow_phase: servicing
    owner_role: loss_mitigation_specialist
    secondary_owner_role: default_servicing_analyst
    cadence: per-defaulted-loan
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - hud-ml
      - fha
      - servicing
      - loss-mitigation
      - 90-day-review
      - promoted
    primary_source:
      tier: 1
      authority: HUD ML 2025-21 — III.A.2.h.iii(B) 90-Day Review
      source_class: hud-ml-pdf
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-21hsgml.pdf
      snapshot_id: 0f41482d77e0986d
      fetched_at: '2026-05-22T19:55:08Z'
      content_hash: sha256:9e00d33ec9fdf534b6c34a9c479dbf829dded85b7d488a4db2186e46f1a5f729
      paragraph_quote: |-
        A Mortgagee is required to complete an evaluation of a Defaulted Mortgage 
        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.
      drafter_attestation: |
        Copied verbatim from snapshot 0f41482d77e0986d (content.txt) at
        2026-05-22T20:40Z. Substring is the (B) 90-Day Review operative
        standard incorporated into Handbook 4000.1 III.A.2.h.iii(B) by
        ML 2025-21.
    promoted_at: '2026-05-22T20:17:43+00:00'
    promoted_from: hud-ml-2025-21-roundb-v1.yaml
  - id: hud-ml-2025-21-permanent-home-retention-documents-15-days
    canonical_id: hud-ml-2025-21-permanent-home-retention-documents-15-days
    section: HUD ML 2025-21 — Execution of Permanent Home Retention Option Documents (III.A.2.i.iii(D))
    description: |
      For each Borrower who successfully completes a Trial Payment Plan (TPP)
      on a Permanent Home Retention Option, [LENDER] must send the Permanent
      Home Retention documents to the Borrower within 15 Days from the
      successful completion of the TPP. [LENDER] must also cease all
      foreclosure related activities upon acceptance of the executed Permanent
      Home Retention Option Documents.
    type: do
    audit_question: For every Borrower who successfully completed a TPP on a Permanent Home Retention Option, can [LENDER] evidence (a) delivery of the Permanent Home Retention documents to the Borrower within 15 Days of TPP completion and (b) cessation of foreclosure-related activities upon acceptance of the executed documents?
    program_review: Do the P&Ps ensure Permanent Home Retention documents are sent to the Borrower within 15 Days of successful TPP completion AND that all foreclosure-related activities cease upon acceptance of the executed documents?
    file_review: Pull successful-TPP files; confirm document delivery within 15 Days and cessation of foreclosure-related activity upon acceptance of the executed documents.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: loss_mitigation_specialist
    secondary_owner_role: default_servicing_analyst
    cadence: per-loss-mit-workout
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - hud-ml
      - fha
      - servicing
      - loss-mitigation
      - permanent-home-retention
      - tpp
      - promoted
    primary_source:
      tier: 1
      authority: HUD ML 2025-21 — III.A.2.i.iii(D)
      source_class: hud-ml-pdf
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-21hsgml.pdf
      snapshot_id: 0f41482d77e0986d
      fetched_at: '2026-05-22T19:55:08Z'
      content_hash: sha256:9e00d33ec9fdf534b6c34a9c479dbf829dded85b7d488a4db2186e46f1a5f729
      paragraph_quote: |-
        The Mortgagee must send the Permanent Home Retention documents to the 
        Borrower within 15 Days from the successful completion of a TPP.
      drafter_attestation: |
        Copied verbatim from snapshot 0f41482d77e0986d (content.txt) at
        2026-05-22T20:40Z. Substring is the (D) Execution standard's lead
        requirement; the cessation-of-foreclosure obligation immediately
        follows and is paraphrased in description.
    promoted_at: '2026-05-22T20:17:43+00:00'
    promoted_from: hud-ml-2025-21-roundb-v1.yaml
  - id: hud-ml-2025-21-assumability-no-restrictions
    canonical_id: hud-ml-2025-21-assumability-no-restrictions
    section: HUD ML 2025-21 — Assumability of FHA-Insured Mortgages (III.A.3.b.i)
    description: |
      All FHA-insured Mortgages serviced by [LENDER] are assumable. [LENDER]
      must not impose, agree to, or enforce legal restrictions on conveyances
      or assumptions after closing except when (a) specifically permitted by
      HUD regulations or (b) the restriction had been specified in a junior
      lien granted to [LENDER] after settlement.
    type: dont
    audit_question: For every FHA-insured Mortgage in [LENDER]'s servicing portfolio, can [LENDER] demonstrate that no legal restriction on conveyance or assumption is being imposed, agreed to, or enforced, except where specifically permitted by HUD regulations or specified in a post-settlement junior lien granted to [LENDER]?
    program_review: Does the program account for the assumability rule and its carve-outs — imposing/agreeing/enforcing no legal restriction on conveyance or assumption after closing except where specifically permitted by HUD regulations or specified in a post-settlement junior lien granted to [LENDER]?
    file_review: Spot-check the servicing portfolio for conveyance/assumption-restriction handling; confirm no impermissible restriction is imposed or enforced outside the two carve-outs.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: loss_mitigation_specialist
    secondary_owner_role: default_servicing_analyst
    cadence: continuous
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - hud-ml
      - fha
      - servicing
      - assumability
      - conveyance-restrictions
      - promoted
    primary_source:
      tier: 1
      authority: HUD ML 2025-21 — III.A.3.b.i Assumability
      source_class: hud-ml-pdf
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-21hsgml.pdf
      snapshot_id: 0f41482d77e0986d
      fetched_at: '2026-05-22T19:55:08Z'
      content_hash: sha256:9e00d33ec9fdf534b6c34a9c479dbf829dded85b7d488a4db2186e46f1a5f729
      paragraph_quote: |-
        All FHA-insured Mortgages are assumable. The Mortgagee must not 
        impose, agree to, or enforce legal restrictions on conveyances or 
        assumptions after closing except when:
      drafter_attestation: |
        Copied verbatim from snapshot 0f41482d77e0986d (content.txt) at
        2026-05-22T20:40Z. Substring is the (i) Assumability operative
        standard from ML 2025-21; the two carve-outs are paraphrased in
        description.
    promoted_at: '2026-05-22T20:17:43+00:00'
    promoted_from: hud-ml-2025-21-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-22T20:17:43+00:00'
    candidate_path: obligations\_remediation\_round_b_drafts\hud-ml-2025-21-roundb-v1.yaml
    candidates_promoted: 3
    candidates_skipped_existing: 0

Verbatim regulatory text (3)

Verbatim provisions from HUD Mortgagee Letter 2025-21 — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

HUD ML 2025-21 — Loss Mitigation Program 90-Day Review (III.A.2.h.iii(B))

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.

Source: HUD ML 2025-21 — III.A.2.h.iii(B) 90-Day Review · source URL · snapshot 0f41482d77e0986d

HUD ML 2025-21 — Execution of Permanent Home Retention Option Documents (III.A.2.i.iii(D))

The Mortgagee must send the Permanent Home Retention documents to the Borrower within 15 Days from the successful completion of a TPP.

Source: HUD ML 2025-21 — III.A.2.i.iii(D) · source URL · snapshot 0f41482d77e0986d

HUD ML 2025-21 — Assumability of FHA-Insured Mortgages (III.A.3.b.i)

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:

Source: HUD ML 2025-21 — III.A.3.b.i Assumability · source URL · snapshot 0f41482d77e0986d

Operationalizing HUD Mortgagee Letter 2025-21

This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.

Source of record: https://claudeforcompliance.com/regs/hud-ml-2025-21/ · register hud-ml-2025-21 · Claude for Compliance. Free to read and download; see regulatory updates and methodology.