The U.S. Department of Housing & Urban Development (HUD) has announced the agency is contracting with Michaelson, Connor & Boul Inc. (MCB) of Huntington Beach, Calif. to serve as a mortgagee compliance manager. MCB will be responsible for ensuring that Federal Housing Administration (FHA)-approved lenders and loan servicers convey foreclosed properties to the FHA in acceptable condition.
MCB will establish a central office for lender compliance oversight in Oklahoma City, which is projected to create 75-100 new professional jobs. HUD's National Servicing Center (NSC) in Oklahoma City will be responsible for the direct oversight of the new compliance manager contract.
"This new contract is part of FHA's continuing effort to reduce risk, increase return, and improve efficiency in the resale of its inventory of foreclosed property," said HUD Deputy Assistant Secretary Vicki Bott. "It is critically important that FHA recaptures as much of our claims through the eventual sale of these properties and this compliance management firm will help us do that."
The contract is awarded under FHA's Management and Marketing (M&M) III disposition structure. Under M&M III, the process of conveying foreclosed properties to FHA has been centralized and streamlined in order to simplify the process for FHA's lenders and servicers, as well as to improve communication and the dissemination of program guidance and requirements.
As the largest seller of real estate in the country, HUD has been outsourcing the disposition of its foreclosed FHA inventory under the M&M contracting process since 1999. After conducting extensive research into market-based best practices, HUD has developed its new M&M III disposition structure to streamline its operations, capitalize on the expertise of potential vendors and provide flexibility in a changing environment.
Under M&M III, lenders and loan servicers seeking to convey foreclosed properties to FHA will find a more efficient and less complex process than under previous M&M contracts. Michaelson, Connor & Boul, Inc will serve as the sole entity responsible for mortgagee compliance.