Washington, D.C – March 10, 2025 – Community Home Lenders of America (CHLA) today 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.
LINK TO CHLA LETTER – https://www.communitylender.org/chla-comment-letter-establishment-of-fha-optional-claim-reimbursement/.
“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.
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,” said Scott Olson, Executive Director of CHLA.
About Community Home Lenders of America
Community Home Lenders of America (CHLA) is the only national non-profit association that exclusively focuses on small and mid-sized community-based mortgage lenders. The mission of the CHLA is to promote federal mortgage programs, rules, and regulations which treat community mortgage lenders fairly, and which reflect the critical importance that community mortgage lenders play in providing broad access to credit for borrowers, in increasing competition in mortgage markets, and in providing borrowers with quality mortgage services and access to loans at a local level. Learn more: https://www.communitylender.org/ or by following the organization’s LinkedIn page: https://www.linkedin.com/company/community-home-lenders-association-inc/.