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Report Fraud, Waste and Abuse
  • Recommendation Number: 2025-KC-1002-001-A
  • Status: Open
  • Date Issued: January 30, 2025

Require Carrington to remedy HUD and the 27 borrowers in our sample with improper foreclosure filings and take administrative actions if appropriate.

Publication Report

2025-KC-1002 | January 30, 2025

Carrington Mortgage Misapplied FHA's Foreclosure Requirements

We performed an audit of Carrington Mortgage’s compliance with Federal Housing Administration (FHA) requirements for foreclosures that started in 2022. Pursuant to the Coronavirus Aid, Relief and Economic Security Act (CARES Act), as extended by the… more

Related Recommendations

Housing

  •  
    Status
      Open
      Closed
    2025-KC-1002-001-B

    Require Carrington to perform a review of loans affected by the system errors and when appropriate, remedy the borrowers or HUD.

  •  
    Status
      Open
      Closed
    2025-KC-1002-001-C

    Require Carrington to update its policies and procedures to comply with HUD requirements by reviewing eligible borrowers for streamlined options without unnecessary documents, notifying borrowers if they are ineligible for any loss mitigation options, and using best efforts to review borrowers for loss mitigation within 37 days of the foreclosure sale date.

  •  
    Status
      Open
      Closed
    2025-KC-1002-001-D

    Require Carrington to implement improved controls to prevent manual errors by performing additional review of all foreclosure actions and performing timely review of all documentation provided by the borrowers and third parties.