Single Family Mortgage Insurance and Loss Mitigation Procedures
OGC-96-33: Published: Aug 8, 1996. Publicly Released: Aug 8, 1996.
Pursuant to a legislative requirement, GAO reviewed the Department of Housing and Urban Development's (HUD) new rule on single family mortgage insurance and loss mitigation procedures. GAO found that: (1) the interim rule would eliminate the Mortgage Assignment Program and provide alternative procedures to foreclosure for mortgagors in default and reward mortgagees for using the alternative procedures; (2) the rule would also provide for payment to the mortgagee of a partial claim to be applied to the arrearage and for HUD to accept an assignment of a modified mortgage to cure the default, where repooling of the loan is not possible; and (3) HUD complied with applicable requirements in promulgating the rule.