Effective November 1, 2015, all FHA-Approved Mortgagees and Single Family Servicing Managers (Mortgagee) must use the updated version of the Notice to Occupants of Pending Acquisition (NOPA). The Department of Housing and Urban Development (HUD) has revised the notice to eliminate references to the expired Protecting Tenants at Foreclosure Act, and provide the necessary attachments to be included with the notice.
The NOPA requires a Mortgagee to notify the mortgagor and each head of household occupying a unit of the property about the potential of the Mortgagee conveying the property to HUD following foreclosure. The NOPA must be sent at least 60 calendar days, but not more than 90 calendar days before the Mortgagee reasonably expects to acquire title to a property securing an FHA insured mortgage.
The NOPA shall advise the recipients that:
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Potential acquisition of the property by HUD is pending;
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HUD requires that properties be vacant at the time of conveyance, unless the mortgagor or other occupant can meet the conditions for continued occupancy1;
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An occupant may request permission to remain in occupancy in the event of acquisition of the property by notifying the HUD Field Office in writing, with any required documentation, within 20 days of the date of the NOPA;
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If an occupant seeks to qualify for continued occupancy under the illness or injury provisions of § 203.674(a), the occupant shall provide to the HUD Field Office, at the time of the occupant’s request for permission to remain in occupancy, documentation to support this claim; and
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If an occupant fails to make a timely request, the property must be vacated before the scheduled time of acquisition.
To access Mortgagee Letter 2015-20, the revised Notice to Occupants of Pending Acquisition and Attachments 3 and 4, visit HUD’s Single Family Mortgages Documents page.
Practice Tips
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A Mortgagee is expected to make any additional changes to the NOPA necessary to be compliant with federal, state, or local laws.
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A Mortgagee may use their company’s proprietary standard employment verification form for NOPA Attachment 2.
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The NOPA and its attachments must be sent via U.S. Postal Service or another mail service via certified mail or some other service that ensures receipt of the NOPA by occupants.
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Upon mailing the NOPA, the Mortgagee must provide an electronic copy of each notice along with all documentation and information obtained regarding existing leases and tenancies, to HUD’s Mortgagee Compliance Manager by uploading such through HUD’s P260 Lender Portal.
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Endnotes
1HUD will accept conveyance of an occupied property containing one to four residential unit if:
(1) An individual residing in the property suffers from a temporary, permanent, or long-term illness or injury that would be aggravated by the process of moving from the property, and that the individual meets the eligibility criteria in § 203.674(a);
(2) State or local law prohibits the mortgagee from evicting a tenant residing in the property who is making regular monthly payments to the mortgagor, or prohibits eviction for other similar reasons beyond the control of the mortgagee; or
(3) It is in HUD’s interest to accept conveyance of the property occupied under § 203.671, the property is habitable as defined in § 203.673, and, except for conveyances under § 203.671(d), each occupant who intends to remain in the property after the conveyance meets the eligibility criteria in § 203.674(b).
