FHA issued a mortgagee letter updating preservation and protection requirements and cost reimbursement procedures for title II forward mortgages and HECMs. This mortgagee letter: consolidates and updates property preservation and protection (P&P) guidance for properties securing FHA-insured mortgages; increases the maximum property preservation allowance and adds, clarifies, and increases other line items; emphasizes FHA’s current conveyance condition standards; reminds mortgagees of FHA’s inspection requirements; and details claims calculation and documentation requirements for property P&P actions.
