HUD ML 2013-39 Methods of Communication With Borrowers

On October 28, the U.S. Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2013-39, subtitled Methods of Communication With Borrowers.

To: All Approved Mortgagees, Single Family Servicing Managers

Subject: Methods of Communication with Borrowers

Purpose: The purpose of this Mortgagee Letter is to provide updates to HUD’s policies on communicating with borrowers whose loans are delinquent or in default. These updates promote prompt and effective contact with FHA borrowers and will help to ensure that these borrowers are able to communicate with their servicers regarding their delinquencies and any available loss mitigation assistance. Specifically, this Mortgagee Letter addresses:

  • Timelines and methods for communicating with borrowers;
  • Policies for engaging borrowers early in their delinquency;
  • Specialized collection techniques for early payment defaults and redefault; and
  • FHA’s expectation for servicers to have written escalation processes and

Effective Date: These updates are effective for all mortgages in default as of January 1, 2014.

Affected Policy: The policies set forth in this Mortgagee Letter modify or supersede,
where there is conflict, the following sections of HUD Handbook 4330.1, Rev-5,
Administration of Insured Home Mortgages.

Please click here to view the letter in its entirety.


About Safeguard 
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders,  and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website:


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