Identify FHA borrowers who received a non-HUD-approved loss mitigation option and ensure that the borrowers receive an updated approved HUD loss mitigation option.
Publication Report
2023-KC-1001 | June 13, 2023
Nationstar Generally Did Not Meet HUD Requirements When Providing Loss Mitigation to Borrowers of Delinquent FHA-Insured Loans
We audited Nationstar Mortgage, LLC’s (doing business as Mr. Cooper (Nationstar)) compliance with the Federal Housing Administration’s (FHA) requirements for providing loss mitigation assistance to borrowers after their COVID-19 forbearance ended. We… moreRelated Recommendations
Housing
Review the sampled loans for which borrowers did not receive appropriate loss mitigation options to ensure that the borrowers were remedied by Nationstar, if possible, and take administrative actions if appropriate.
Implement controls and provide employee training to help prevent noncompliance in loss mitigation.
Update and implement controls to the Nationstar internal system to ensure the correct application of COVID-19 partial claims.
- Status2023-KC-1001-001-DOpenClosed
Identify loans with COVID-19 recovery partial claims that were affected by the improper application of partial claims funds and update the accounts.
Update the servicing script to include information related to the HAF program, identify borrowers who may benefit from HAF, and conduct outreach to these borrowers.