HUD requires the audit system
to review mortgage loan files at least monthly to evaluate
the loan servicing functions having to do with default
servicing. The review must determine, at
a minimum, whether the following requirements have
collection activities are pursued in a timely fashion
and contact with
all co-borrowers, co-signors and former mortgagors,
is attempted as appropriate.
documentation of collection efforts is maintained,
including referral of the borrower to a HUD-approved
counseling agency and timely mailing of HUD pamphlet
HUD-426 to the borrower.
with borrower. A personalized
interview, face-to-face or telephone, with the borrower
is attempted before three full mortgage installments
monitoring. Accurate and
timely reports are submitted to the FHA single family
default monitoring system.
bureau reporting. Borrower
information is reported to credit reporting agencies
to protect and preserve the mortgaged property are
performed in accordance with HUD requirements.
mitigation. All appropriate
loss mitigation tools are considered and documented
and borrowers are provided every reasonable opportunity
to remedy a delinquency or default prior to the decision
Additional assistance to remedy the delinquency
is reasonable given the financial data submitted
by the borrower and reasonable
partial payments are accepted in accordance
with FHA requirements.
Foreclosure proceedings are initiated and completed in
a timely manner in compliance with HUD requirements.
servicing. FHA disaster
moratorium requirements are met.
judgments are taken where required.
controls are in place to ensure that claims for insurance
benefits are accurately prepared, properly calculated,
fully supported and submitted in a timely manner to