HUD Extends Deadline for Exceptions to Face-To-Face Meetings with Borrowers in Default

HUD has partially extended the deadline for mortgage servicers to comply with new rules governing face-to face meetings with borrowers in default.

The partial compliance period extension will permit mortgagees to continue to rely upon two exceptions to the person-to-person meeting requirements under the Modernization of Engagement with Mortgagors in Default Final Rule, as currently codified. During the extended compliance period, an in-person meeting with the mortgagor will not be required where: (1) the mortgagor does not reside in the mortgaged property; and (2) the mortgaged property is not within 200 miles of the mortgagee, its servicer, or a branch office of either. 

The partial compliance period extension expires on July 1, 2025, and is intended to allow mortgagees sufficient time to implement guidance in a forthcoming Mortgagee Letter to be issued by HUD.  Mortgagees may optionally elect to comply with the entirety of the Modernization of Engagement with Mortgagors in Default final rule on January 1, 2025, its effective date.