FHA adopted rules establishing a 40-year loan modification option. Under the adopted rules, lenders and servicers may increase the maximum term of a loan modification from 360 to 480 months for FHA-insured mortgages after a default episode. FHA simultaneously published Mortgagee Letter 2023-06 establishing the standalone 40-year loan modification policy. The adopted rules must be implemented no later than May 8, 2023 (servicers may, however, implement the adopted rules immediately).
Click to view the FHA Info 2023-15: https://www.tenaco.com/wp-content/uploads/2023/03/FHA-Info-2023-15-03-08-23.pdf
Click to view the FHA Mortgagee Letter 2023-06: https://www.tenaco.com/wp-content/uploads/2023/03/FHA-Mortgagee-Letter-2023-06-03-08-23.pdf
Click to view the FHA Rule Adoption – Increased 40-Year Term for Loan Modificatons: https://www.tenaco.com/wp-content/uploads/2023/03/FHA-Rule-Adoption-Increased-40-Year-Term-for-Loan-Modificaitons.pdf
