The National Servicing Center Implemented the FHA-HAMP Loss Mitigation Option in Accordance With Rules and Regulations | Office of Inspector General, Department of Housing and Urban Development

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April 08, 2011

Housing

2011-FW-0001

ig1160001.pdf

We audited the U. S. Department of Housing and Urban Development’s (HUD’s) National Servicing Center’s (NSC) Federal Housing Administration (FHA)-Home Affordable Modification Program (HAMP) as a part of our annual audit plan. Our objective was to determine whether the NSC implemented and operated FHA-HAMP in accordance with rules and regulations.

Overall, the NSC implemented and operated FHA-HAMP in accordance with the necessary rules and regulations. However, we identified three areas that the NSC needed to improve. These three areas were identifying failed FHA-HAMP trial plans, identifying duplicate FHA-HAMP payments, and improving the timeliness of trial payments.

We recommended that the Acting Director of the Office of Single Family Asset Management to require the NSC to (1) develop a default status code for failed FHA-HAMP trial plans; and (2) clarify its timeliness of trial payments.