Skip to main content

HUD issues Mortgagee Letter 09-52 on short sales
Dec 18, 2009

The U.S. Department of Housing & Urban Development (HUD) has issued, effective immediately, Mortgagee Letter 09-52, covering short sales and short payoffs. Mortgagee Letter 09-52 provides guidance to lenders and underwriters regarding borrower eligibility when: A previously-owned property was sold for less than what was owed (short sale), or there is principal write down of indebtedness that cannot be refinanced into a new mortgage (short pay off). The topics summarized below were revised or created as a result of these changes in guidance. Mortgagee Letter 09-52 also provides the entire content of each block affected, with changes underlined. The changes will be integrated into the FHA Single Family On-Line Handbooks shortly. FHA guidance on short sales Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to: ► Take advantage of declining market conditions, and ► Purchase, at a reduced price, a similar or superior property within a reasonable commuting distance. For detailed information on converting existing principal residences into rental properties, see 4155.1 4.E.4.g. Guidance on borrowers current at the time of short sale Borrowers are considered eligible for a new FHA-insured mortgage if: ► They were current on their mortgage and other installment debts at the time of the short sale of their previously owned property, and ►The proceeds from the short sale serve as payment in full. For detailed information, see “Short Sales” at 4155.1 4.C.2.l. Guidance on borrowers in default at the time of short sale Borrowers in default on their mortgage at the time of the short sale (or pre-foreclosure sale) are not eligible for a new FHA-insured mortgage for three years from the date of the pre-foreclosure sale. Lenders may make exceptions to this rule under certain circumstances. For detailed information, see “Short Sales”, at 4155.1 4.C.2.l. Refinancing with short payoff FHA will insure the first mortgage where the existing note holder(s) write off the amount of indebtedness that cannot be refinanced into the new mortgage due to a decline in property value and/or a reduction in income. For detailed information, see “Short Pay Offs”, at 4155.1 3.B.1.f. Click here for a full copy of Mortgagee Letter 09-52. For more information, visit
Dec 18, 2009
CFPB Reports Trends In Financial Assistance

The latest developments from this study reveal that most consumers have exited the payment assistance they received at the start of the pandemic.

Analysis and Data
Jul 14, 2021
CFPB Orders GreenSky To Refund $9M In Unauthorized Loans

The consent order requires GreenSky to refund or cancel up to $9 million in loans for the customers harmed by this illegal conduct.

Regulation and Compliance
Jul 13, 2021
CFPB Warns Landlords And Consumer Reporting Agencies To Report Accurate Rental Information

Inaccurate rental or eviction information can unfairly block families and individuals from safe, affordable housing.

Regulation and Compliance
Jul 01, 2021
FHFA Mandates Quarterly Fair Lending Reports

FHFA issued orders for all enterprises to submit quarterly Fair Lending Reports with data and information to improve the FHFA’s capabilities. 

Regulation and Compliance
Jul 01, 2021
FHFA Follows CFPB To Protect Borrowers Once COVID-19 Foreclosure And Eviction Moratoriums End

The Federal Housing Finance Agency made it clear that Fannie Mae and Freddie Mac servicers are not permitted to make first notice or filing for foreclosure that would be prohibited by the CFPB protections for borrowers affected by COVID-19.

Regulation and Compliance
Jun 30, 2021
CFPB Finds Evidence Of Redlining And Deceptive Acts In 2020

Enforcement actions resulted in more than $124 million in consumer remediation and civil money penalties in 2020

Regulation and Compliance
Jun 29, 2021