CHLA Applauds FHA’s Actions To Clarify Servicing Rules While Preserving Borrower Protections
The Community Home Lenders of America (CHLA) applauds the release of FHA’s Mortgagee Letter (ML 2025-14), which clarifies and streamlines servicing requirements for FHA-insured loans—reducing burdens on servicers while maintaining strong borrower protections.
“CHLA commends FHA for thoughtfully eliminating unnecessarily burdensome servicing rules while preserving the critical duty of servicers to work with distressed borrowers to avoid foreclosure,” said Scott Olson, Executive Director of CHLA. “This is a meaningful step toward aligning compliance with practical servicing realities—particularly for independent mortgage banks that are on the front lines of helping borrowers stay in their homes.”
The updated guidance expands borrower contact requirements in a way that makes it easier to reach more borrowers in a timely and effective manner. FHA also provided clarity in Reg X requirements and issued technical corrections to recent loss mitigation policies.
CHLA welcomes FHA’s continued commitment to reducing regulatory friction while supporting sustainable homeownership.
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