Comment deadline: FHA proposal to set deadline for insurance claims

The Federal Housing Administration has announced and published in the Federal Register a proposal to establish a maximum time period for lenders to file insurance claims and to revise its policy on reimbursement of eligible expenses and debenture interest when foreclosure and claim filing deadlines are missed. The proposal would require lenders to submit claims three months from the point at which they obtain marketable title to the property or successfully sell the property to a third party. This new deadline will ensure FHA can effectively manage and process timely claims. It would also eliminate the requirement that lenders/servicers forfeit reimbursement for eligible expenses and debenture interest after missing a foreclosure or claim filing deadline.