The American Bankers Association joined the Housing Policy Council and the Mortgage Bankers Association in a comment letter to the Department of Housing and Urban Development last week offering feedback on recent proposed changes to the servicing section of the Federal Housing Administration Single-Family Housing Policy Handbook. The groups commended HUD and FHA for their work to update existing servicing and loss mitigation policies to further align them with those of Fannie Mae and Freddie Mac.
The groups also made several high-level recommendations for HUD to consider. The recommendations include: reforming the foreclosure timeline structure; reforming the conveyance process; enhancing the Claims Without Conveyance of Title program; making additional enhancements to the loss mitigation process and associated waterfall; repealing the face-to-face interview requirements; and allowing a reasonable period of time to implement handbook changes.
