FHA issued Mortgagee Letter 2025-21, updating new permanent loss mitigation options. The Mortgagee Letter makes minor changes to facilitate the implementation of servicing and loss mitigation requirements announced in Mortgagee Letter 2025-12 (Tightening and Expediting Implementation of the New Permanent Loss Mitigation Options) and Mortgagee Letter 2025-14 (Updates to Modernization of Engagement with Borrowers in Default and Loss Mitigation). Also, the Single Family Default Monitoring System (SFDMS) Reporting Codes are being updated and will be available on the supplemental documents webpage. In addition, model loan documents “Borrower’s Consent to Voluntary Termination of FHA Mortgage Insurance” and “Partial Claim Note and Subordinate Mortgage” will be updated and available in the coming days on the model documents webpage.
The Mortgagee Letter becomes effective December 30, 2025 (servicers, however, may implement the provisions of this ML on October 1, 2025).
Click to view the FHA Mortgagee Letter 2025-21: https://www.tenaco.com/wp-content/uploads/2025/10/FHA-Mortgagee-Letter-2025-21-09-24-25.pdf
Click to view the FHA Info #2025-48: https://www.tenaco.com/wp-content/uploads/2025/10/FHA-Info-2025-48.pdf
