FHA Issues Guidance on Property Preservation Expenses

FHA Issues Guidance on Property Preservation Expenses

Industry Update
March 30, 2022

Source:  National Mortgage News

The Department of Housing and Urban Development issued a mortgagee letter aimed at clarifying contingencies around property protection and preservation reimbursement for loans that have a first legal foreclosure action filed on or after March 31.

Confirmed as excluded from reimbursable P&P costs in addition to those deemed “unreasonable” by Federal Housing Administration handbook definition are real estate taxes and hazard insurance premiums, according to the letter published March 29. The letter also provides information about the boundaries for the period during which work is reimbursable.

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