HUD's Payment of Distributive Shares From the Mutual Mortgage Insurance Fund
CED-81-44
Published: Feb 09, 1981. Publicly Released: Feb 09, 1981.
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Highlights
The Mutual Mortgage Insurance Fund allows single-family homes to be purchased with small downpayments and long-term mortgages and insures lenders against loss from defaulted mortgage loans. The Department of Housing and Urban Development (HUD) is required to pay dividends (distributive shares) from the Fund to eligible mortgagors when their mortgages are paid in full. A review was performed of HUD efforts to pay distributive shares to mortgagors.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Housing and Urban Development | The Secretary of HUD should instruct the Director of Mortgage Insurance Accounting to request mortgagors' social security numbers on termination requests and use the IRS mail forwarding service as an alternate means of locating mortgagors when routine procedures fail. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Housing and Urban Development | The Secretary of HUD should instruct the Director of Mortage Insurance Accounting to develop a fact sheet explaining premium refunds for mortgagees to give to mortgagors both at the time of loan origination and at insurance termination. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
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Topics
Fund auditsHomeowners loansLoan accounting systemsLoan repaymentsMortgage programsMortgage protection insuranceHousingMortgagesMortgage insuranceUrban development