- the FHA-insured mortgage insurance is still active for the FHA case number;
- the Mortgagee has worked with the Borrower to exhaust all applicable Home Retention Options and has determined that the Borrower’s situation does not meet the criteria for a Home Disposition Option, or the Mortgagee has been unable to locate the Borrower, and the Property is vacant or has been abandoned by the Borrower;
- the Property has no Surchargeable Damage; and
- if the Mortgagee were to file a conveyance claim, the Mortgagee’s projected conveyance claim amount would be equal to or greater than the CAFMV.
Note: FHA is permitting, but not requiring, the use of CAFMV by Small Servicers, defined in
12 CFR 1026.41(e)(4)(ii) available at: https://www.law.cornell.edu/cfr/text/12/1026.41
Any questions may be directed to the FHA Resource Center by email at: firstname.lastname@example.org, or the toll-free telephone number at (800) CALLFHA (225-5342). Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at (800) 877-8339.
For additional information, see policy in Handbook 4000.1 III.A.2.p.ii(B) and III.A.2.p.v available at:
Mortgagee Letter 2020-21 is available at: https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee