New FHA Mortgagee Letters: Key Updates and Changes

The following Mortgagee Letters were recently published, providing important updates on these key topics:

2026-10 - Updates to FHA Quality Control Requirements for Appraisal Field Reviews
2026- 09 - Eliminating Unnecessary Requirements for FHA Mortgagee Approval and Quality Control
2026-08 - Updates to Loss Mitigation Requirements
2026-07 - Rescission of the Important Notice to Homebuyers Form HUD-92900-B Requirement
2026-06 - Increase in the Maximum Number of Draw Requests for Limited 203(k) Rehabilitation Mortgage Insurance Program

Highlights of 2026-08- Updates to Loss Mitigation Requirements:

• The provisions of this ML may be implemented immediately but must be implemented no later than September 21, 2026.
• This Mortgagee Letter (ML) updates the requirements for Trial Payment Plans (TPP) and for reviewing Borrowers for loss mitigation options.
• ML establishes a new reason for Trial Payment Plan (TPP) failure. HUD recognizes that there are legitimate circumstances where Borrowers may fail to make a first payment on a TPP. However, to avoid Borrowers deliberately choosing to repeatedly fail to accept a TPP, when a Borrower fails to accept a TPP Agreement for a third time, this will be considered a TPP failure. Second, this ML limits Borrower requests for multiple re-reviews for loss mitigation that prevent the Mortgagee from initiating foreclosure.
• This ML updates the TPP requirements to clarify that the monthly payment between the TPP and the Permanent Home Retention Option or OWL may change for this reason. Additionally, this ML revises the TPP requirements to align with the housing policy waiver published on March 3, 2026, allowing Borrowers to make their TPP payments in advance of the month they are due.

Highlights of ML 2026-07- Rescission of the Important Notice to Homebuyers Form HUD-92900-B Requirement:

• This Mortgagee Letter (ML) rescinds the requirement for Mortgagees to provide borrowers with form HUD-92900-B, Important Notice to Homebuyers, and to obtain the executed form.
• The provisions of this ML are effective immediately.
• This ML deletes HUD Required Disclosures – Form HUD-92900-B, Important Notice to Homebuyers (II.A.1.a.ii(A)(2)) and renumbers subsequent sections.