CHLA Commends FHA for Scrapping Claim Filing Deadlines – 10/19/15

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                                                      October 19, 2015

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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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