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a. Single Family Default Monitoring System Default Reporting (04/29/2026)
i. Definition
The Single Family Default Monitoring System (SFDMS) is HUD’s system for tracking Mortgagee data on Defaulted Mortgages until a Default is resolved through reinstatement or termination.
ii. Standard
The Mortgagee must accurately report in SFDMS the required data to indicate the severity of Default and the Mortgagee actions taken.
(A) Types of Mortgages to Report
Each month, the Mortgagee must report all reportable Default servicing activities for all Mortgages that are 30, 60, and 90 Days or more in Default and all Mortgages in a Payment Supplement Period, as of the last Day of the month.
The Mortgagee must report the status of four classes of Mortgages each month:
• New Defaults: The Mortgagee must report Defaulted accounts when one full installment is due and unpaid (30 Days Delinquent - Status Code 42) and must continue reporting the applicable Status Code until the Default is resolved.
• Open Defaults: The Mortgagee must continue to report a Status Code 42 until a servicing action has been initiated/approved and/or completed, which would warrant a Status Code change.
• Defaults Resolved During the Cycle Month: The Mortgagee must report the appropriate Status Code to reflect that the Default has been addressed.
• Mortgages Receiving a Payment Supplement: The Mortgagee must report Status Code 51 with the applicable oldest unpaid installment date and additional Status Codes as applicable.
(B) Time Frame for Reporting
For every case for which reporting is required, the Mortgagee must submit Default data documenting the status as of the end of the month by the fifth business day of the following month. In addition, Mortgagees may also submit Default data throughout the month.
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(C) Reporting Accuracy
The Mortgagee must submit a complete and accurate SFDMS report. If the Mortgagee submits incomplete or inaccurate data, SFDMS may automatically reject the report for that Mortgage or the Mortgagee’s entire monthly report.
(D) Quality Control
A Mortgagee’s Quality Control Plan must ensure that:
• the reporting staff is properly trained;
• servicing and foreclosure staff are aware of reporting requirements and of cases reported; and
• report format and content are checked for errors by trained staff, whether it is prepared manually or by an automated system.
(E) Error Reports and Correction
The Mortgagee may receive Error Reports from two systems:
• Electronic Data Interchange (EDI), which provides the All Transaction Sets 824 (TS 824) Report (see the Electronic Data Interchange Implementation Guide for additional information); or
• SFDMS.
The Mortgagee is responsible for retrieving Error Reports from these systems and submitting necessary corrections by the fifth business day. HUD will not provide additional time to enter corrections.
(F) Calculation of Curtailment of Interest for Failure to Notify HUD of
Foreclosure Initiation
The Mortgagee must give Notice to HUD of Foreclosure Initiation within 30 Days of initiating foreclosure by reporting the foreclosure status in the monthly SFDMS report. This is accomplished by reporting DDS Code 68 for the current cycle or following cycle in which the first legal action is taken to initiate foreclosure.
Interest is calculated based on the date the first legal action to initiate foreclosure was taken and the reporting cycle in which the action was properly reported.
For each reporting cycle that the notification of foreclosure is delayed, the Mortgagee’s claim must be reduced by an amount equivalent to 30 Days of interest. Where non-compliance with this requirement is established, the minimum interest reduction will be equal to 30 Days of interest.
The Mortgagee must report a DDS Code 68 to resolve this noncompliance.
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Mortgagees are responsible for self-curtailing where the reporting requirement was not met.
(G) Reporting Delinquencies to HUD
(1) Delinquency/Default Status Codes
The Mortgagee must report the correct DDS Code reflecting the status of the Mortgage.
The Mortgagee must include applicable status dates when reporting DDS Codes. The Default status date must reflect the date on which the Mortgage entered the DDS Code reported.
(a) Reporting a New Default Episode
Each new Default episode must be started by reporting DDS Code 42. If there is no open Default episode and the Mortgagee tries to report any other DDS Code, this will not be accepted in SFDMS.
DDS Codes may be repeated each month until another DDS Code applies.
(b) Correction of a Previously Reported Status Code
If a Mortgagee reports a Borrower in Default in error (Status Code 42) for the first time in a Default episode, the Mortgagee must contact HUD at answers@hud.gov for assistance.
When a Mortgagee discovers that the previous Status Code was reported in error, for any other reason, the Mortgagee must:
• report a Status Code 25, Cancel, to advise HUD that the last Status Code reported was in error and should be preserved as a historical record without affecting the Default sequence; and
• report the correct Status Code.
(c) Delinquency Workouts
Delinquency workout DDS Codes represent loss mitigation tools that must be reported upon approval. The Mortgagee must not wait until receipt of funds or executed documents to report applicable DDS Codes.
Loss mitigation DDS Codes must be reported as the last DDS Code for the reporting month if multiple DDS Codes for which additional reporting is required are applicable during the month.
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(i) Option Failure
DDS Code AQ must be reported when the Borrower fails to perform or to fulfill obligations made for a Loss Mitigation Option. The Mortgagee must continue to report AQ until another DDS Code applies.
(ii) Trial Payment Plans
The Mortgagee must report the appropriate DDS Code indicating the Loss Mitigation Option for which the Borrower has been approved for a Trial Payment Plan.
(d) Bankruptcy
The Mortgagee must report the appropriate DDS Code indicating the type of bankruptcy filed, if the bankruptcy plan is confirmed, and the type of bankruptcy resolution.
(2) Delinquency/Default Reason Codes
The Mortgagee must report the most applicable reason for the Delinquency/Default using the Delinquency/Default Reason (DDR) Codes. Changes in the reason for Default may occur during the Default episode and must be reported accordingly.
The Mortgagee must ensure that SFDMS reflects the appropriate Default Reason Code for the Default by the 90th Day of delinquency.
(a) Unable to Contact Borrower
The Mortgagee must report DDR Code 31, Unable to Contact Borrower, when the reason for delinquency cannot be ascertained because the Borrower cannot be located or has not responded to the Mortgagee’s communication attempts.
If the Mortgagee reports DDR Code 31 in SFDMS, the Mortgagee must document its efforts to contact the Borrower in the Servicing File and must continue to try to determine the reason for Default.
A Mortgagee that establishes contact with the Borrower must report the appropriate reason for Default. If the Mortgagee later loses contact with the Borrower during the Default episode, the Mortgagee must not report DDR Code 31, Unable to Contact Borrower. Mortgagees must instead report the accurate DDR Code, and then may later report DDS Code AP to reflect that no further loss mitigation action can be reported due to loss of contact.
If the Mortgagee reports DDR Code 31 in error, the Mortgage must:
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• report a Status Code 25, Cancel, to advise HUD that the last Status Code reported was in error and should be preserved as a historical record without affecting the Default sequence; and
• report the correct Status Code.
(b) Other
The DDR Code for Other must only be used in cases in which there is no other DDR Code to adequately reflect the reason for the Default.
(c) Disasters
The Mortgagee must report the most appropriate reason for the Default when the Borrower has been impacted by a Presidentially-Declared Major Disaster Area (PDMDA). Mortgagees may update to DDR Code A46 as needed. If the Borrower’s Property is damaged and the Borrower is experiencing income loss due to the disaster, Mortgagees must report DDR Code A43. Mortgagees must not report DDR Code 019 Casualty Loss for PDMDA damaged properties even if an insurance claim has been filed and is pending.
• Reason Code A43 – Disaster Damaged Property
• Reason Code A45 – Income Loss Due to Disaster
• Reason Code A46 – Unable to Contact Borrower Disaster
(3) Property Occupancy Reporting
The Mortgagee must report to HUD the occupancy status of the mortgaged Property by reporting in SFDMS:
• the Occupancy Status Code as determined either through contact with the Borrower or through Occupancy Inspections; and
• if vacant, the date when the Mortgagee determined that the mortgaged Property became vacant. If the mortgaged Property becomes reoccupied, remove the date. If the mortgaged Property becomes re-vacated, input new date.
The occupancy status code for Unable to Determine Occupancy must be used only in cases in which there is no contact with the Borrower and access to the Property is restricted or prohibitive.
(4) Re-Default After Permanent Home Retention Option Is New Default
If the Mortgage becomes in Default after the Mortgage has been reinstated through the use of a Permanent Home Retention Option, the Mortgagee must report this as a new Default episode.
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(5) Reporting Payment Supplement
The Mortgagee must report the use of a Payment Supplement in SFDMS, using DDS Code 51 – Payment Supplement.
• While the Borrower remains in the Payment Supplement Period, the Mortgagee must continue to report DDS Code 51 with the applicable oldest unpaid installment date, including every month the Borrower makes their required payment under the Payment Supplement. If occupancy is not required to be determined, the Mortgagee must report Occupancy Status Code 7 – Occupancy Determination Not Required. The Mortgagee must continue to report the reason for Default determined during the Default episode.
• The Mortgagee must not report DDS Code 20 or 98 if the Payment Supplement is still in effect for the duration of the Payment Supplement Period.
For Borrowers utilizing the Payment Supplement where another delinquent Status Code also applies, the Mortgagee must report DDS Code 51 first followed by any other applicable DDS Codes.
After the completion or termination of the Payment Supplement Period, the Mortgagee must report:
• DDS Code 98 if the Mortgage is current; or
• the applicable code if the Mortgage is not current.
(a) Borrower Resumes Payment After Payment Supplement Period
If the Borrower resumes their monthly Mortgage Payment following the Payment Supplement Period or the Borrower requests to terminate the Payment Supplement and affirms they can resume their full monthly Mortgage Payment, the Mortgagee must report DDS Code 98.
(b) Subsequent Default
For every month the Borrower does not make their required payment under the Payment Supplement, the Mortgagee must report DDS Code 51 with the applicable oldest unpaid installment date indicating that the Mortgage is past due. The Mortgagee must report the applicable Occupancy Status Code and Occupancy Status Date based on the most recent occupancy determination.
If the Borrower does not make their required payment under the Payment Supplement and then reinstates their Mortgage without the use of a Loss Mitigation Option, the Mortgagee must continue to report DDS Code 51 with the applicable oldest unpaid installment date. The Mortgagee must not report DDS Code 20 or 98 as long as the Payment Supplement is still in effect.
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(i) Forbearance during Payment Supplement Period
If the Borrower begins a Forbearance during the Payment Supplement Period, the Mortgagee must:
• report the appropriate DDS Code for the Loss Mitigation Option utilized; and
• continue to report DDS Code 51 with the applicable oldest unpaid installment date until new executed loss mitigation documents are received.
(ii) Standalone Partial Claim after Subsequent Default
If the Borrower does not make their required payment under the Payment Supplement and then reinstates their Mortgage with the use of a Standalone Partial Claim, the Mortgagee must:
• report the appropriate DDS Code for the Standalone Partial Claim utilized;
• continue to report DDS Code 51 with the applicable oldest unpaid installment date; and
• not report DDS Code 20 or 98 as long as the Payment Supplement is still in effect.
(iii)Other Loss Mitigation Options after Subsequent Default
If the Borrower does not make their required payment under the Payment Supplement and then reinstates their Mortgage with the use of other Loss Mitigation Options, the Mortgagee must:
• report the appropriate DDS Code for the Loss Mitigation Option utilized;
• continue to report DDS Code 51 with the applicable oldest unpaid installment date until new executed loss mitigation documents are received; and
• report DDS Code 98 upon reinstatement and stop reporting DDS Code 51.
(iv) Option Failure
If the Borrower does not sign and return the Payment Supplement Documents or does not make their required payment under the Payment Supplement and cannot reinstate their Mortgage with or without the use of loss mitigation, the Mortgagee must report DDS Code AQ – Option Failure with the applicable Occupancy Status Code and applicable Occupancy Status Date.
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(c) Sale, Refinance, or Other Mortgage Termination
If the Borrower sells the Property, refinances the Mortgage, or otherwise pays the Mortgage in full before the end of the Payment Supplement Period, the Mortgagee must report DDS Code 13.
(d) Assumption
If the Mortgage is assumed before the end of the Payment Supplement Period, the Mortgagee must report DDS Code 21.
(e) Bankruptcy
If the Borrower is in bankruptcy and continues to make their required payment under the Payment Supplement, the Mortgagee is not required to report bankruptcy.
(6) Reporting Foreclosure/CWCOT Outcomes
The Mortgagee must report the DDS Codes that apply to the foreclosure sale, CWCOT, or CWCOT post-foreclosure sale outcomes at the end of each reporting cycle. For Properties marketed post-foreclosure sale, the applicable DDS Code indicating the marketing period must be reported. For all Properties sold, the Mortgagee must report the buyer type.
Mortgagees must report the DDS Codes as follows:
• Status Code 1J – Post-Foreclosure Sales Period
• Status Code 2U – Owner-Occupant Buyer Successful Bidder
• Status Code 2N – Nonprofit Successful Bidder
• Status Code 2G – Governmental Entity Successful Bidder
• Status Code 2I – Investor/Other Successful Bidder
• Status Code 2R – Borrower Successful Bidder
• Status Code 2S – Servicer Successful Bidder
Mortgagees must report one of the existing termination DDS Codes at the conclusion of the Default episode:
• Status Code 46 – Property Conveyed to Insurer; expected to follow 2S, 1J, or 1E when a conveyance claim will be filed with HUD.
• Status Code 48 – Claim Without Conveyance of Title; expected to follow 2U, 2N, 2G, 2I, 2R, or 2S when a CWCOT claim will be filed with HUD.
• Status Code 29 – Charge-off; expected after a 2S when a Mortgagee cannot pursue HUD disposition options and will not file any termination claim with HUD, or has elected not to convey a Property to HUD after foreclosure.
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• Status Code 30 – Third-Party Sale; expected to follow 2U, 2N, 2G, or 2I when no claim will be filed with HUD.
• Status Code 73 – Property Redeemed; expected to follow 2S when a Borrower redeems the Property, and no claim will be filed with HUD.