General World News

HUD walks back prior default guidance as too ‘burdensome’ for mortgage servicers

In a move that’s designed to simplify prior policy, the Federal Housing Administration (FHA) on Tuesday published a new Mortgagee Letter (ML) that targets borrower default engagement practices that were published in the waning days of the Biden administration.

ML 2025-14 makes changes to final guidance first floated last summer to open up communications between mortgage lenders and defaulted borrowers to remote and electronic methods.

The original guidance, codified in December’s ML 2024-24, was designed to broaden the ways for borrowers to meet with lenders details ⇒

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