--- title: Federal Housing Administration (FHA) ML 2025-12 description: Stay updated on FHA’s Mortgagee Letter 2025-12—servicing changes, new loss mitigation options, FAQs, and training resources for servicers and stakeholders. --- [Padgett Regulatory Affairs Blog ](https://padgettlawgroup.com/regulatory-affairs-blog) # [Federal Housing Administration (FHA) ML 2025-12](https://padgettlawgroup.com/regulatory-affairs-blog/federal-housing-administration-fha) Written by [Marissa M. Yaker, Esq.](https://padgettlawgroup.com/regulatory-affairs-blog/author/marissa-m-yaker-esq) | Oct 1, 2025 1:22:12 PM Mortgagee Letter 2025-12: On Wednesday, September 24, 2025, FHA published FHA Info 2025-18 and Mortgagee Letter 2025-12 announcing updates to the requirements for servicing of FHA-insured forward Mortgages. In the ML, “FHA published minor changes to facilitate the implementation of servicing and loss mitigation requirements in ML 2025-12, with addressing feedback received from the industry.” Link to the ML: [Updates to Mortgagee Letter 2025-12, Tightening and Expediting Implementation of the New Permanent Loss Mitigation Options](https://www.hud.gov/sites/dfiles/Housing/documents/2025-21hsgml.pdf) Additionally, along with these updates, FHA recently published updated FAQs on Loss Mitigation.  Link to the updated and newly published FAQs below: [Home](https://answers.hud.gov/FHA/s/) *Summary of Changes per the ML Below:* - adds Adding Borrowers to a Mortgage (III.A.1.j.v); - updates Eligibility to Participate in HUD Programs (III.A.2.h.iii(A)); - updates Financial Hardship Documentation (III.A.2.h.iv(C)); - updates Loss Mitigation Home Retention Options – Definitions (III.A.2.i.i); - updates Borrower Qualifications (III.A.2.i.iii(A)(2)); - updates Borrower Affordability Attestation – Standard (III.A.2.i.iii(B)(2)); - updates Trial Payment Terms (III.A.2.i.iii(C)(2)(b)); - updates Reconsideration for Permanent Home Retention Options After TPP Failure (III.A.2.i.iii(C)(5)(b)); - updates Execution of Permanent Home Retention Option Documents (III.A.2.i.iii(D)); - updates Partial Claims – Standard (III.A.2.i.iv(B)); - updates Statutory Maximum for Partial Claims (including Payment Supplement) (III.A.2.i.iv(C)); - updates Payment of Partial Claim (III.A.2.i.iv(I)); - updates Combination Loan Modification and Partial Claim (III.A.2.i.v(G)); - updates Mortgage Reinstatement with Other Permanent Loss Mitigation Option – MoPR Terminates (III.A.2.i.vi(J)(3)); - updates Outside of the Waterfall Loan Modification – Eligibility (III.A.2.i.vii(B)); - updates Loss Mitigation Assumption (III.A.2.i.ix); - updates DIL Exceptions for Borrowers with More than One FHA[1]Insured Mortgage (III.A.2.j.iii(C)(3)); -  updated Loss Mitigation Denial (III.A.2.q.i(D)(3)); -  updates Assumability of FHA-Insured Mortgages (III.A.3.b.i); and updates Appendix 4.0, Part A: Arrearages.   **FHA Trainings on its Loss Mitigation Program:** On September 22, 2025, FHA announced the release of a series of pre-recorded trainings on its loss mitigation options. These pre-recorded trainings provide servicers and other interested stakeholders with an in-depth overview of FHA’s new loss mitigation options –announced in [Mortgagee Letter (ML) 2025-12](https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-12hsgml.pdf) and updated by [ML 2025-14](https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-14hsgml.pdf) – that are designed to assist homeowners with FHA-insured mortgages who are facing financial hardship avoid foreclosure. *Note:  The Default Servicing and Early Default Intervention presentation was very interesting as it relates to partial payments and the OUI.* The following pre-recorded trainings are accessible on HUD’s [Electronic Courses on Loss Mitigation and Servicing System (ECLASS)](https://eclass.hudnsc.org/index.cshtml?specialKey=yOjchkmNuRmkYAPJYaX7%2F7NwYg7fOCrAIgsB3Syvuek%3D) - Default Servicing and Early Default Intervention - HUD’s Loss Mitigation Program – Home Retention - HUD’s Loss Mitigation Program – Payment Supplement - HUD’s Loss Mitigation Program – Home Disposition Link: [ECLASS | Electronic Courses on Loss Mitigation and Servicing System](https://eclass.hudnsc.org/index.cshtml?specialKey=yOjchkmNuRmkYAPJYaX7%2F7NwYg7fOCrAIgsB3Syvuek%3D) **Loss Mitigation Options Frequently Asked Questions Now Available** FHA is making available a [Loss Mitigation Options questions and answers](https://www.hud.gov/sites/dfiles/Housing/documents/Loss_Mitigation_Options_Qs_As.pdf) [document](https://www.hud.gov/sites/dfiles/Housing/documents/Loss_Mitigation_Options_Qs_As.pdf) that compiles the most common questions received following the publication of [Mortgagee Letter (ML) 2025-12](https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-12hsgml.pdf) and updated in [ML 2025-14](https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-14hsgml.pdf). The FHA Resource Center knowledge base has been updated more broadly with information related to the updated loss mitigation options. Link: [LOSS MITIGATION WATERFALL WEBINAR](https://www.hud.gov/sites/dfiles/Housing/documents/Loss_Mitigation_Options_Qs_As.pdf)   [View full post](https://padgettlawgroup.com/regulatory-affairs-blog/federal-housing-administration-fha) ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Marissa M. 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