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The Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2022-08, Expanding Affordable Housing Supply Through FHA’s Claims Without Conveyance of Title (CWCOT) Process to increase the supply of affordable housing and expand access to homeownership for low- and moderate-income homebuyers.

This ML adds an initial 30-day exclusive sales period to benefit buyers that are owner-occupants, HUD-approved nonprofits, and governmental entities. Through the exclusive sales period, these specified buyers may bid on properties foreclosed through the CWCOT post-foreclosure process before investors have an opportunity to do so. This ML also extends the mortgagee’s conveyance timeline to provide these buyers additional time to obtain financing and complete the sale.

This policy may be implemented immediately; however, it must be implemented for all post-foreclosure sales associated with defaulted FHA-insured mortgages scheduled to occur 90 days from the publication date of this Mortgagee Letter.

These updates will be incorporated in a future version of the Single-Family Housing Policy Handbook 4000.1.

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