HUD has released Mortgagee Letter 2006-15, announcing future reporting requirements for delinquent FHA-insured single family mortgages.

On March 31, HUD issued Directive Number: FR-4916-F-02, revising the regulation requiring mortgagees to report all accounts that are 30 days delinquent as of the last day of the month.  This is a change to the previous reporting requirement that had mortgagees to wait until the mortgages become 90 days delinquent.

FHA is requiring that mortgagees begin reporting the revised data beginning with the October 2006 reporting cycle.  That data is due to HUD no later than November 7, 2006, the fifth business day of that month.

The Mortgagee Letter includes different key items of note.

• When Must Delinquency Reporting Begin?
•  New definition and reporting requirement for Status Code 42 (Delinquent).
• Importance of the Oldest/Unpaid Installment (OUI).
  
• Updated Delinquency/Default Status (DDS) Codes.
  
• Updated Delinquency/Default Reason (DDR) Codes.
  
• New Definition and Reporting Requirements for Status Codes 09 and 12.
  
• New Rules to Identify Reinstatements.
  
• New Rules related to FC Reporting.
  
• Multiple Status Code Reporting in the Same Month will be Accepted.
  
• Error Correction.
  
• Improved FHA Connection Functionality.
  
• Loan Servicing Transfers.
• Occupancy Status and Date
  
• Correction of a Previously Reported Status Code
  
• Removal of Existing Status Codes
  
• Bankruptcy Reporting
  
• Ineligible for Loss Mitigation
  

To view the full Mortgagee Letter and Appendixes please click on the following links.

HUD ML 2006-15 Future Delinquency Reporting Requirements 

Appendix 1 Delinquency/Default Status (DDS) Codes and Appendix 2 Delinquency/Default Reason (DDR) Codes