HUD recently released two announcements concerning servicers' responsibilities with respect to loss mitigation.

The first, Directive Number FR-4553-F-03, amends HUD's civil money penalty regulations to reflect HUD's authorization to impose treble damages on mortgagees who fail to engage in appropriate loss mitigation actions.  These new regulations will take effect May 26, 2005.

To read the entire directive, please click on FR-4553-F-03 Failure To Engage in Loss Mitigation(http://hudclips.org/sub_nonhud/cgi/pdf/8334a.pdf).

The second announcement, appearing in the form of Mortgagee Letter 2005-18, comments on the observed increase in and success of loss mitigation efforts and announces that HUD is offering an increased incentive for servicers who make use of loss mitigation and partial claim options.

To read this mortgagee letter in its entirety, please click on ML 2005-18 Success of Loss Mitigation and Increase in Incentive Payments (http://hudclips.org/sub_nonhud/cgi/pdfforms/05-18ml.doc).  

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