Update the Save Your Home - Tips to Avoid Foreclosure brochure to include new loss mitigation options as they are introduced and require servicers to send this additional information to delinquent homeowners. This could be done as a redesign of the existing brochure or as addendums to the brochure for temporary programs.
Publication Report
2023-KC-0005 | June 13, 2023
Servicers Generally Did Not Meet HUD Requirements When Providing Loss Mitigation Assistance to Borrowers With Delinquent FHA-Insured Loans
We performed an audit of loan servicers’ compliance with the Federal Housing Administration’s (FHA) requirements for providing loss mitigation assistance to borrowers after their COVID-19 forbearance ended. We initiated the audit based on the… moreRelated Recommendations
Housing
Review the loans in our sample that did not receive appropriate loss mitigation options to ensure that the borrowers were remedied by the servicers, when possible, and take administrative actions if appropriate.
Engage with the servicers in our sample to determine reasons for noncompliance and develop a plan to mitigate it going forward.
- Status2023-KC-0005-001-COpenClosed
Provide additional guidance and training to servicers to address common loss mitigation issues found during this audit.
Update HUD’s FHA FAQs to clarify current loss mitigation requirements and ensure that outdated guidance is removed.
Design and implement a data-driven methodology to determine the appropriate mix of origination and servicing monitoring and desk reviews.