HUD Mortgagee Letter 2022-06 — Establishing the Claims Standard for Reasonable Payments for Property Preservation and Protection Costs
HUD ML 2022-06 updates Handbook 4000.1 sections III.A.2.t.i(E) (Curtailment of Claims) and IV.A.2.a.ii(D) (Claim Type 01 Property Preservation and Protection Costs) to establish that HUD will only reimburse Mortgagees for reasonable Property Preservation and Protection (P&P) payments incurred during the P&P period.
Verbatim regulatory text
Verbatim provisions from HUD Mortgagee Letter 2022-06 — Establishing the Claims Standard for Reasonable Payments for Property Preservation and Protection Costs — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
HUD ML 2022-06 — Reasonable Payments for Property Preservation and Protection Costs (IV.A.2.a.ii(D)(3))
Mortgagee payments for P&P costs are considered reasonable if they are incurred during the P&P period, are otherwise reimbursable, and meet the allowances and schedules in Appendix 7.0. The Mortgagee may only include reasonable payments for P&P costs in its claim.
HUD ML 2022-06 — Prohibition on P&P Costs Incurred After P&P Period (IV.A.2.a.ii(D)(3))
Mortgagees must not claim P&P costs incurred after the P&P period for reimbursement.
HUD ML 2022-06 — Effective Date
This ML must be implemented for all FHA-insured Mortgages where the deadline to complete the first legal action, as defined in Appendix 6.0 of HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook (Handbook 4000.1), is on or after March 31, 2022.