Servicers of FHA mortgage loans dodged a regulatory bullet after the Department of Housing and Urban Development withdrew part of a recently proposed rule, which would terminate insurance coverage if an FHA claim were not filed within a certain period. HUD withdrew the provision under heavy pressure from mortgage lenders, servicers and other industry participants, who expressed concern over the punitive penalty for missing prescribed filing deadlines. Published on July 6, 2015, the proposed rule, among other things, would have established a deadline for filing FHA insurance claims to address the problem of delayed claims filing, which put a strain on FHA resources. Late filings were tolerated previously but the problem worsened after the financial crisis when servicers began submitting FHA claims in bunches, causing processing bottlenecks and longer turnaround time for ...