Sunset of COVID-19 and HAMP programs
All COVID-19 recovery options and the FHA-Home Affordable Modification Program (FHA-HAMP) ended on September 30, 2025. Servicers can no longer offer these programs.
Program Changes
New permanent loss mitigation
The permanent loss mitigation waterfall became active on October 1, 2025, replacing prior pandemic-era structures.
“Payment Supplement” option
A standalone Partial Claim now brings a mortgage current and temporarily reduces principal and interest payments for three years before returning to the original amount.
Outside the Waterfall Loan Modifications (OWL)
For unresponsive borrowers, an OWL modification can permanently adjust mortgage terms to secure at least a $1 reduction in the principal and interest payment.
Borrower Eligibility & Compensation
24-month limit on permanent options
Borrowers may access only one permanent home-retention loss mitigation option every 24 months, with exceptions for natural disasters.
Reduced borrower compensation
Pre-foreclosure sale and deed-in-lieu incentives were reduced; for example, the pre-foreclosure sale incentive decreased from $7,500 to $3,000.
Stricter disposition eligibility
Short sale or deed-in-lieu approvals now require at least 61 days of delinquency, documented financial hardship, and ineligibility for retention options.
Non-permanent resident restrictions
New residency requirements apply to FHA-insured mortgages for non-permanent residents and to assumptors seeking retention options.