HUD announces proposed streamlined single-family servicing policies

Last month, the Department of Housing and Urban Development (HUD) announced that FHA published proposed revisions to its single-family servicing policies to reduce burdens on homeowners and mortgage servicers. The revisions include changing the standard servicing loss mitigation home retention waterfall, eliminating unnecessary and time-consuming borrower documentation requirements for Trial Payment Plans, and modifying servicing and operational policies like the allowable fee structures. “Our proposed policy changes will strengthen servicers’ ability to keep families experiencing financial challenges in their homes. They reduce the unnecessary barriers that often impede the delivery of timely borrower assistance,” said Acting Federal Housing Commissioner Len Wolfson in a statement.