Foreclosure rescue scams: Separating the victims from the culprits
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Foreclosure rescue scams: Separating the victims from the culprits

December 10, 2008

HUD eliminates settlement option for mortgagees who fail to renew FHA approvalMortgagePress.comHUD, FHA approval, Mortgagee Letter 2009-01,
The U.S. Department of Housing and Urban Development (HUD) has
issued Mortgagee Letter 2009-01, announcing that it will no longer
permit mortgagees that fail to comply with annual FHA-approval
renewal requirements to settle the matter prior to consideration by
the Mortgagee Review Board.
The Mortgagee Letter rescinds paragraph 4-9 of HUD Handbook
4060.1, REV-2, which allowed mortgagees that had not met the annual
renewal requirements to settle the violation with HUD by paying a
$1,000 fee. HUD is eliminating this process "to bring more
mortgagees into compliance with [its] statutory and regulatory
mandates," and to prevent conflicts with its recently revised
Mortgagee Review Board regulations.
According to HUD, "any failure of a mortgagee or a lender to
comply with annual renewal of FHA-approval requirements may be
referred to the Mortgagee Review Board." Mortgagees that receive a
Notice of Violation for failure to renew must now appeal the Notice
pursuant to 24 C.F.R. Part 25. A mortgagee, however, may still cure
the violation, which will be taken into consideration by the
Board.
For a copy of Mortgagee Letter 2009-1, click
here.

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