But

ML
2025-13,
released
on
Monday,
is
rescinding
these
policies
and
their
subsequent
incorporation
into
the
Single
Family
Housing
4000.1
Handbook.

“HUD
data
over
the
past
several
years
show,
at
best,
mixed
results
from
these
efforts,”
the
letter
reads.
“During
the
new
CWCOT
exclusive
listing
period,
very
few
properties
have
sold
to
owner-occupant
buyers
and
even
fewer
were
purchased
by
HUD-approved
nonprofits
and
government
entities.

“For
REO,
it’s
unclear
whether
the
longer
exclusive
listing
period
resulted
in
higher
overall
REO
sales
to
owner-occupants
or
shifted
sales
from
the
original
listing
period
(Days
1-15)
and/or
the
regular
listing
period.”

Additionally,
REO
sales
to
HUD-approved
nonprofits
and
government
entities
“remain
at
near-zero
levels,”
the
FHA
said.
It
added
that
this
anemic
sales
activity
“leads
to
continued
deterioration
of
the
properties,
as
well
as
additional
holding
costs,
which
leads
to
lower
sales
prices,
greater
losses
to
HUD,
and
an
increase
in
time
before
properties
are
returned
to
the
market.”

The
agency
will
also
be
updating
the
relevant
sections
of
the
4000.1
Handbook
to
reflect
this
new
priority.

The
ML
updates
CWCOT
post-foreclosure
sales
efforts
and
eliminates
both
the
post-foreclosure
and
extended
post-foreclosure
sales
period.
It
also
updates
CWCOT
default
reporting
requirements
for
single-family
properties,
and
it
rescinds
current
language
while
restoring
language
that
existed
before
the
2022
guidance
was
handed
down
by
the

Biden
administration.

CWCOT
provisions
of
the
new
ML
can
be
implemented
immediately.
These
and
the
REO
provisions
of
the
ML
must
be
implemented
by
May
30,
the
letter
explained.
The
relevant
4000.1
Handbook
update
is
forthcoming.