Department of Housing and Urban Development
Single Family Mortgage Insurance-Loss Mitigation Procedures Gao ID: OGC-98-17 December 9, 1997Pursuant to a legislative requirement, GAO reviewed the Department of Housing and Urban Development (HUD) new rule on single family mortgage insurance loss mitigation procedures. GAO found that: (1) the rule eliminates the Mortgage Assignment Program and provides that HUD may: (a) recompense mortgages for using mortgage foreclosures; (b) pay the mortgagee a partial claim which would be applied to the arrearage of a defaulted mortgage; and (c) accept assignment of a mortgage which the mortgagee has modified to cure the default; and (2) HUD complied with the applicable requirements in promulgating the rule.