National Mortgage News reports that in late December 2021, a group of attorneys general from 20 states made allegations that certain mortgage servicers failed to offer borrowers a recently added Federal Housing Administration loan modification option as required. In a recent statement, the FHA indicated they are taking the allegations “very seriously.” Specifically, in response to a letter sent to the agency in which the attorneys general alleged that “a number of mortgage loan servicers employed by FHA-approved lenders are failing to adequately implement COVID-19 relief.” The FHA in its statement reiterated that it expects servicers of FHA-insured mortgages to take all necessary steps to work with borrowers who have experienced COVID related financial hardship.
Join the SFA Servicer Committee. Contact Dallin Merrill for more information.