Can Mortgagees utilize HUD’s Loss Mitigation Program for Hope for Homeowners (H4H) Mortgages?

The Mortgagee may utilize HUD’s Loss Mitigation Program for Hope for Homeowners (H4H) Mortgages, subject to the following special considerations:
FHA Home Affordable Modification Program (FHA-HAMP) Loan Modifications
HUD will subordinate the H4H Exit Premium Mortgage (EPM) to the modification of an H4H Mortgage completed in accordance with HUD’s Loss Mitigation Program.
FHA-HAMP Partial Claim
For a Partial Claim Note, HUD does not require subordination of the EPM.
Pre-Foreclosure Sale
The Mortgagee must include the total dollar amount of the EPM in the total debt calculation for the negative equity ratio calculations.
Deed-in-Lieu (DIL)
HUD will accept a DIL subject to the EPM lien.
Mortgagees should contact HUD’s Loan Servicing Contractor for questions related to servicing or satisfaction of H4H Exit Premium Mortgage (EPM).
HUD’s Loan Servicing Contractor:
Novad Management Consulting
Shepherd Mall
2401 NW 23rd Street Suite, 1A1
Oklahoma City, OK 73107
Toll-Free: (877) 622-8525
Fax: (800) 489-1733
Email Boxes:

HUD’s Loss Mitigation policy information is available in Handbook 4000.1, Section III.A.2.
Additional Default and Loss Mitigation policy information for H4H Mortgages is available in Handbook 4000.1, Section
available at

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-04686