FHA issued Mortgagee Letter (ML) 2025-14 revising and streamlining policy established in ML 2024-24 (Modernization of Engagement with Borrowers in Default) and providing clarifications to ML 2025-12 (Tightening and Expediting Implementation of the New Permanent Loss Mitigation Options).
Highlights of the ML include:
- Updating requirements for a reasonable effort to arrange an interview with borrowers in default;
- Removing unnecessarily burdensome requirements associated with the interview with borrowers in default;
- Clarifying the transition to the new home retention options for borrowers who are currently required to complete a trial payment plan (TPP);
- Updating the requirement for borrowers in imminent default to complete a four-month TPP; and
- Updating disaster forbearance requirements.
The provisions in Attachment 1 of this ML must be implemented no later than July 1, 2025 (servicers, however, may implement the provisions immediately). The provisions in Attachment 2 of this ML must be implemented on October 1, 2025.
Click to view the FHA Mortgagee Letter 2025-14: https://www.tenaco.com/wp-content/uploads/2025/06/FHA-Mortgagee-Letter-2025-14-06-03-25.pdf
