Assumptions - Assumption of an FHA-insured mortgage is a servicing function where the responsibility or paying for a mortgage is taken over by another person through simple assumption or creditworthiness assumption.

Claims - The vehicle utilized for payment of insurance proceeds from HUD to a Mortgagee is the Insurance Benefit Claim form HUD- 27011. This form is utilized for all submissions of claims for Conveyance of Property and Loss Mitigation Option incentives.

Deed-in-Lieu - A Deed in Lieu of foreclosure (DIL) is a disposition option in which a mortgagor voluntarily deeds collateral property in exchange for a release from all obligations under the mortgage. A DIL of foreclosure may not be accepted from mortgagors who can financially make their mortgage payments. DIL Fact Sheet

Extension of Time - To comply with required time frames, an Extension of Time may be granted for a mortgagee to initiate or complete a Loss Mitigation (except Preforeclosure Sales) and/or foreclosure action. A mortgagee is required to submit to NSC-Oklahoma City, form HUD-50012, Request for Extension of Time, prior to the expiration of the respective time frame.

FHA Connection - FHA Connection (FHAC) is a portal used by mortgagees to report on and update the status of their FHA portfolio. In addition, the FHAC facilitates the following Single Family Servicing functions: Claims Processing, Delinquent Loans, HECM Reports, Monthly Premiums, Mortgage Record Changes, Mortgage Calculator, Mortgage Servicing Data Quality system and Lender Query by Case Number. FHAC FAQs.

FHA-HAMP - FHA-HAMP provides homeowners in default a greater opportunity to retain homeownership using a partial claim combined with a loan modification. Read Mortgagee Letter 09-23, the Questions and Answers document, and the FHA-HAMP Fact Sheet.

Foreclosure - Foreclosure should only be considered as a last resort and should not be initiated until all relief options have been exhausted. When foreclosure cannot be avoided, it must be started quickly and prosecuted vigorously to minimize losses to both the mortgagee and HUD.

General Loss Mitigation - This category includes all Loss Mitigation questions that are not specific to one of the five Loss Mitigation Options.

General Servicing - This category includes all General Servicing items stated within HUD Handbook 4330.1 REV-5, Administration of Insured Home Mortgages.

Loan Modification - A Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford. Loan Modification Fact Sheet

Partial Claim - Under the Partial Claim option, a mortgagee will advance funds on behalf of a mortgagor in an amount necessary to reinstate a delinquent loan (not to exceed the equivalent of 12 months PITI). The mortgagor will execute a promissory note and subordinate mortgage payable to HUD. Currently, these promissory or "Partial Claim" notes assess no interest and are not due and payable until the mortgagor either pays off the first mortgage or no longer owns the property. Partial Claim Fact Sheet

Preforeclosure Sale - The Preforeclosure Sale (PFS) Program allows the mortgagor in default to sell his/her home and use the net sale proceeds to satisfy the mortgage debt even though these proceeds are less than the amount owed. Preforeclosure Sale Fact Sheet

Preforeclosure Sale Variance - A mortgagee is required to submit to NSC - Oklahoma City, form HUD-90041, Request for Variance Procedure, to request permission from HUD regarding any Preforeclosure Sale Program exception as well as to request an Extension of Time pertaining to the Preforeclosure Sale Program. Variances are considered on a case-by-case basis.

Single Family Default Monitoring System - Data reported to the Single Family Default Monitoring System (SFDMS) is used to measure the effectiveness of origination and servicing activities, and the potential risk to the insurance fund.

Special Forbearance - A Special Forbearance (SFB) is a written repayment agreement between a mortgagee and a mortgagor, which contains a plan to reinstate an asset that is minimum three mortgage payments due and unpaid. Special Forbearance Fact Sheet

Variance - On company letterhead, mortgagees are required to submit to NSC-Oklahoma City any request requiring a variance associated with Special Forbearance, Loan Modification, Partial Claim or Deed-in-Lieu of Foreclosure eligibility criteria or servicing guidelines. Variances are considered on a case-by-case basis.