HUD Proposes Expansion Of Mortgagee Evaluation System, Clarifies Good Neighbor Sales Program Rules

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On June 12, HUD proposed in Mortgagee Letter 2013-21 revisions to the system used by the FHA to measure and inform mortgagees of their loss mitigation performance. The proposed revisions involve more comprehensive metrics to evaluate mortgagees on their overall performance with regard to delinquent loan servicing, as opposed to the limited review of default reporting of forbearance actions and loss mitigation and foreclosure claims paid under the current system. HUD is seeking comments on the proposal, which are due by July 12, 2013. Also on June 12, HUD issued Mortgagee Letter 2013-20 to clarify that under its Good Neighbor Next Door Sales Program, which enables eligible participants to purchase at a discount certain designated properties, (i) the mortgage insurance premium is based on the first mortgage only and (ii) the process for submitting requests for an interruption in the owner-occupancy term.

Topics:  FHA, HUD, Insurers, Loss Mitigation, Mortgages

Published In: General Business Updates, Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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