HUD released Mortgagee Letter 2019-14 last week which positions Disaster Loan Modifications and Disaster Partial Claims as a permanent Loss Mitigation Option for Servicers to utilize as part of their Loss Mitigation strategies. These options were introduced at the beginning of 2018, however they were a temporary program with a sunset date of 5/1/2019. HUD has now made these a permanent fixture within the Loss Mitigation section of the HUD handbook and they can be utilized immediately, with a required implementation date no later than 11/30/2019.
While CRFS is assuming that these are still non-Incentivized options, we will continue to monitor the situation until such time HUD inserts these items into the actual handbook. If it appears they are not, we will reach out directly to HUD for clarification and provide additional updates as warranted.
Read the full letter here… https://www.hud.gov/sites/dfiles/OCHCO/documents/19-14hsgml.pdf
