MBA Comment Letter on FHA’s Payment Supplement Claim Drafted Mortgagee Letter

The Mortgage Bankers Association (MBA) and National Mortgage Servicing Association (the Associations) appreciate the opportunity to comment on the Federal Housing Administration’s (FHA) Draft Mortgagee Letter (Draft ML), the Payment Supplement. Ensuring struggling borrowers have options to avoid foreclosure in high-interest rate environments remains a top priority for mortgage servicers. The Associations agree that an innovative loss mitigation alternative to a traditional loan modification that provides temporary payment relief to FHA’s seriously delinquent borrowers is imperative. Given the complexity of the new Payment Supplement account, we appreciate the opportunity for a second round of stakeholder comments via the drafting table.