The Federal Housing Administration (FHA) has posted a draft policy that provides an alternative disclosure option that would give lenders a new way to handle partial claims: hidden liens that surface late in a transaction and hold up closings. FHA is accepting stakeholder feedback through September 3, 2026.
Under the proposal, lenders could instead secure the past-due amount through a non-interest-bearing balance under the existing FHA-insured mortgage, documented with a repayment agreement rather than a recorded subordinate mortgage.
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