14 Jul HUD: FHA INFO #20-50: Updated Servicing and Loss Mitigation Section of the Single Family Housing Policy Handbook Posted on Drafting Table for Public Feedback
July 14, 2020
Today, the Federal Housing Administration (FHA) posted a draft revision of the Servicing and Loss Mitigation section
(Section III) of the Single Family Housing Policy Handbook 4000.1 (SF Handbook) on the Single Family Housing Drafting
Table (Drafting Table) for public review and feedback. This revision proposes updates and policy clarifications, including
those which incorporate changes to FHA’s Loss Mitigation waterfall, align requirements with industry standards, and
streamline documentation requirements and processes.
This draft is for review and to be considered for implementation at a later date as standard FHA policy. It is not intended
to address the immediate servicing and loss mitigation concerns created by the COVID-19 National Emergency.
FHA encourages interested stakeholders to thoroughly review the section content and provide feedback during a 60-day
period from July 14, 2020 through September 12, 2020. Instructions for providing feedback — including use of the Servicing and Loss Mitigation Section Feedback Form — are posted on the Drafting Table. Be advised that when reviewing the draft content, the links to SF Handbook sections outside of Section III will not be operational.
Upon completion of the 60-day review period, FHA will carefully consider the feedback received and, where appropriate,
include in the revised Servicing and Loss Mitigation section, which will ultimately become part of a future SF Handbook
As a reminder, the draft Servicing and Loss Mitigation section of the SF Handbook posted to the Drafting Table does not
set policy and, therefore, should not be used as a guide for servicing FHA-insured mortgages. FHA’s existing policy remains in effect until amended via Mortgagee Letter or the incorporation of the revised Servicing and Loss Mitigation section into a future SF Handbook update.
Quick Links(If you experience issues opening documents in Internet Explorer, use a different web browser)
• Access the online or PDF versions of the Single Family Housing Policy Handbook 4000.1 at:
• View the draft update of the SF Handbook Servicing and Loss Mitigation section on the Single Family Housing Drafting Table at:
Contact the FHA Resource Center:
• Visit our online knowledge base to obtain answers to frequently asked questions 24/7 at: www.hud.gov/answers.
• E-mail the FHA Resource Center at: email@example.com. Emails and phone messages will be responded to during normal hours of operation, 8:00 AM to 8:00 PM (Eastern), Monday through Friday on all non-Federal holidays.
• Call 1-800-CALLFHA (1-800-225-5342). Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at 1-800-877-8339.