FHA’s Stevens Urges Servicers To Review HUD Requirements

Federal Housing Administration (FHA) Commissioner David H. Stevens has urged FHA-approved lenders to immediately review their operations and procedures to ensure they comply with all U.S. Department of Housing and Urban Development (HUD) requirements.

‘Servicers that violate HUD statutes, regulations, handbook requirements or mortgagee letters may be required to repay loss mitigation incentives or indemnify HUD for any losses,’ Stevens wrote in an Oct. 8 ‘From the Desk of the Comissioner article posted on HUD's website. ‘In addition, mortgagees may be referred to HUD's Mortgagee Review Board for appropriate sanctions.’

Stevens reminds servicers that they must maintain a written quality-control plan that covers all aspects of loan servicing, including escrow administration, loss mitigation and foreclosure procedures.

SOURCE: FHA

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