FHA issued a mortgagee letter regarding automatic extensions to HUD’s initiation of foreclosure timeline. This mortgagee letter provides updated guidance relating to HUD’s regulatory requirement for mortgagees to utilize a loss mitigation option or initiate foreclosure within 6 months of the date of default. Specifically, this mortgagee letter: reiterates the existing 8 automatic extensions available to mortgagees when they are unable to initiate foreclosure within the allotted timeframe; and introduces 2 new automatic extensions to align with the CFPB’s Regulation X.
State Compliance Summary
Wisconsin Eliminates Variable Rate, Adverse Action and Transfer of Servicing Disclosure Requirements
Wisconsin passed a bill eliminating variable rate, adverse action and transfer of servicing disclosure requirements. Under the bill, a lender is no longer required to