CHLA Supports The FHA Proposal On Servicer Tax And Insurance Reimbursements
The Community Home Lenders of America (CHLA) submitted a comment letter to the Federal Housing Administration (FHA). The letter expressed CHLA’s support for an FHA proposal that allows servicers who advance taxes and insurance for delinquent borrowers to be reimbursed during the loss mitigation process. The CHLA letter also made several recommendations on how to implement this proposal.
“CHLA supports FHA’s proposal to reimburse servicers for tax and insurance advances when they are helping delinquent borrowers stay in their homes through FHA loss mitigation efforts,” said Scott Olson, Executive Director of CHLA.
“This is one of several constructive steps in recent years to improve the liquidity of mortgage servicers, including Ginnie Mae issuers, which also reduces Ginnie Mae and systemic risk. It also illustrates the need to have sufficient staff at FHA and Ginnie Mae to continue to work on these constructive actions to improve servicer liquidity,” concluded Olson.
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