Housing Assistance: An Inventory of Fiscal Year 2010 Programs, Tax Expenditures, and Other Activities

U.S. Government Accountability Office

Loss Mitigation

Administering Agency/Entity Department of Housing and Urban Development
Short Description Provides reimbursement of certain costs incurred by lenders in executing loan modification and partial claim loss mitigation options and also provides additional financial incentives for all loss mitigation options. The Federal Housing Administration (FHA) delegates authority and responsibility to lenders to utilize certain loss mitigation actions and strategies to assist FHA borrowers in default or at risk of imminent default to retain their homes and reduce losses to FHA’s insurance fund that result from mortgage foreclosures. HUD reimburses administrative costs involved in these actions and pays financial incentives directly to the lender.
Primary Purpose Assistance for buying, selling, or financing a home
Type of Housing Supported Homeownership
Type of Assistance Direct Payment
Fiscal Year 2010 Obligations Costs/savings associated with loss mitigation are among the items factored into subsidy rates for the Mutual Mortgage Insurance Fund.

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