FHA Mortgagee Letter 2025-12: Tightening and Expediting Implementation of the New Permanent Loss Mitigation Options
On April 15, 2025, the Federal Housing Administration issued Mortgagee Letter 2025-12, which supersedes and updates the guidance provided in Mortgagee Letter 2025-06. This letter accelerates the implementation timelines for certain servicing and loss mitigation policy changes, ends specific COVID-19 relief measures earlier than previously scheduled, and removes proposed provisions related to language access disclosures and references to sexual orientation and gender identity in nondiscrimination policies. The updates aim to streamline FHA’s servicing processes and align policies with the current housing market conditions.
