What are the FHA requirements for mail or electronic communication collection attempts?

The Mortgagee must begin mail or electronic communication collection attempts between the 20-25th Day of delinquency.
The Mortgagee must communicate through one of the following methods of communication, if it elects to communicate electronically with Borrowers:
  • email;
  • secure web portals (such as online account management tools accessible by Borrowers); and
  • other reliable communication methods through which the Mortgagee has been able to effectively communicate with Borrowers in the past.
The Mortgagee must ensure that their electronic signature technology complies with all requirements of the Electronic Signatures in Global and National Commerce (E-SIGN) Act, 15 U.S.C. 7001 et seq . The Mortgagee must include within the electronic communication the Mortgagee’s email address, telephone number, and/or website address.

Mortgagees are encouraged to have policies in place to reduce the Mortgagee’s time to respond to Borrowers’ electronic communications. Mortgagees are encouraged to have written policies in place for their customer service, loss mitigation, foreclosure prevention, and collections departments for handling inbound electronic communications in accordance with the requirements of this section and to include in their Quality Control Plans their methodologies for assessing their compliance with these policies.
The Mortgagee must use the method or methods of communication most likely to receive a response from each Borrower and take into account the Borrower’s expressed preference for using certain methods of communication. The Mortgagee must effectively communicate with persons with hearing, visual, and other communications-related disabilities and persons with limited English proficiency.
The Mortgagee must document in their servicing file all mail and electronic communication attempts to reach a Borrower with a Delinquent Mortgage.
Any questions may be directed to the FHA Resource Center Toll-Free Telephone Number at (800) CALLFHA (225-5342) or by email to answers@hud.gov. Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at (800) 877-8339.

See policy in Handbook 4000.1 Section III.A.2.h.vi. at:  https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-04044