Digital Library: Seven Key Changes to the FHA Waterfall

January 26, 2026 — Article

FHA-insured mortgage loans are a key component of financing for low- and moderate-income homeowners, and the rights of homeowners facing financial hardship to modify their FHA-insured mortgage payments are of special significance. 

FHA determines those rights by providing guidance to the entities servicing the FHA-insured mortgages.  This article summarizes the seven top recent changes to that guidance, with cites for more detail to the recently revised Chapter 8 of NCLC’s Mortgage Servicing and Loan Modifications.