- that HUD’s first lien position is preserved; and
- that the Agreement is enforceable under state and local law.
When a Loss Mitigation Option Agreement is to be signed by an Authorized Third Party with authority to act on behalf of the Borrower, the Mortgagee must ensure that the Claim Review File includes a copy of that party’s authorization.
The use of electronic signatures is voluntary. HUD will accept an electronic signature conducted in accordance with the Policy on Use of Electronic Signatures (see Handbook 4000.1 II.A.1.a.i(A)(4)) on HUD Loss Mitigation documents requiring signatures, unless otherwise prohibited by law.
The Mortgagee must not include any language in any loss mitigation documents that requires Borrowers to waive their rights under state or federal law or under the mortgage contract as a condition for consideration, approval, or implementation of a Loss Mitigation Option.
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.
For policy information see Handbook 4000.1 III.A.2.i.vii and IV.A.1.c. at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh