June 10, 2025
In an article by Bonnie Sinnock for National Mortgage News, titled “FHA tweaks updates to loss mit options, ‘face-to-face’ rule,” the FHA announced meaningful revisions to its loss mitigation and borrower contact requirements—revisions that, in our view, finally reflect the operational realities of today’s mortgage servicing landscape.
The update rolls back time-zone-specific availability requirements and instead embraces a more flexible, cost-effective approach for engaging with distressed borrowers. That’s a welcome shift—especially for smaller servicers working across diverse geographies.
DLS Servicing CEO, Donna Schmidt, was quoted in the article, applauding the changes as “a significant improvement over the first draft.” She noted that the new guidance strikes a better balance between compliance and compassion—preserving the spirit of borrower support without getting lost in red tape.
While there’s still work to be done to bring full alignment across agencies, this move by FHA sets a new tone: one that’s workable, thoughtful, and better suited to the realities we face in the field.
We encourage our partners and peers to review the final rule closely and prepare for implementation—because when the rules improve, outcomes can too.
Check out the original article in National Mortgage News here.
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