Community Home Lenders Association Commends FHA for Scrapping
Claim Filing Deadlines
Action will Maintain Full
Confidence in FHA Guarantee
Contact: Scott Olson For Immediate Release 571-527-2601
The Community Home Lenders Association (CHLA) today issued the following statement in response to FHA’s announcement it was dropping its plan in a pending proposed rule to establish new deadlines for filing FHA claims:
“The Community Home Lenders Association commends FHA for dropping its proposal to establish deadlines on filing FHA claims.
FHA’s action to drop this proposal will help maintain full lender confidence in the reliability of the FHA guarantee, and remove any disincentives for servicers to pursue actions to keep distressed borrowers in their home.”
The CHLA wrote FHA a letter in September, recommending that FHA drop the claims filing deadline. CHLA warned that deadlines of the nature proposed by FHA could discourage lender participation in FHA and undercut servicers’ ability to engage in loss mitigation to help keep distressed borrowers in their home. The CHLA letter also pointed out that many delays in filing claims are beyond the control of the servicer.
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