MBA Letter to FHA on Partial Claim Document Recording and Payoff Statements

2024 Comment Letters Government Lending Government Servicing Policy Issue Residential
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Mortgage Bankers Association expresses our concern regarding the policy guidance proposed by the Federal Housing Administration’s (FHA) draft Mortgagee Letter (ML), Partial Claim Document Recording and Payoff Statements. While MBA recognize and appreciate FHA’s commitment to streamlining loss mitigation processes and improving transparency for borrowers, we are concerned FHA’s proposal to require mortgage servicers to use HUD’s SMART Integrated Portal (SIP) to provide borrowers with a payoff statement for all partial claims -- recorded and unrecorded alike -- creates significant operational and regulatory challenges. 

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