Published: November 2023

Strong support for HUD proposal to retain servicer/borrower meeting requirement to prevent FHA loan foreclosures

Dozens of housing, legal and consumer advocates wrote in support of HUD’s proposal to maintain the requirement for loan servicers to have a meeting with FHA-insured mortgage borrowers in default in an effort to help them avoid foreclosure.

Consumer Action and allies submitted comments to the Department of Housing and Urban Development (HUD) expressing support for the agency’s proposal to retain the requirement that loan servicers meet with delinquent FHA-insured mortgage borrowers early in the stages of default. These meetings are crucial because they facilitate better borrower understanding of the various assistance options available to enable them to avoid foreclosure. The groups also expressed strong support for HUD’s proposal to eliminate the loophole that allows servicers to forego the mandatory meeting if they do not have a branch office within 200 miles of the financed property—effectively eliminating the meeting for many borrowers. The groups stressed that even if the meeting is via phone or video rather than in person, it can be of great value in helping borrowers keep their homes. Further, advocates offered recommendations for ensuring that these meetings are meaningful.

Lead Organization

National Consumer Law Center

More Information

Read the letter here.

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