Page 58 - The GSE Report March-April 2018

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We recommend that FHA put $1.9 billion to better use by developing a method for using the Do Not Pay portal to identify delinquent child support and delinquent Federal debt to prevent future FHA loans to ineligible borrowers. We also recommend that FHA revise the single-family handbook to comply with the regulation that prevents loans to borrowers with delinquent child support subject to Federal offset and schedule the timely renewal
of data-sharing agreements to prevent data loss in the Credit Alert Interactive Voice Response System (CAIVRS) or discontinue use of CAIVRS if the information duplicates the information available in the Do Not Pay portal. CAIVRS is a shared database of defaulted Federal debtors developed by HUD to provide information to processors of applications seeking Federal credit benefits.
Representative Maxine Waters introduces The FHA Foreclosure Prevention Act of 2018
Representative Maxine Waters (D-CA), ranking member of the House Financial Services Committee, has introduced The FHA Foreclosure Prevention Act of 2018 (H.R. 5555), which would require increased oversight of FHA lenders to strengthen compliance with FHA loss mitigation requirements. The bill would also require a complaint and appeals process that would provide borrowers the ability to voice their concerns about unfair treatment. Additionally, the bill would prohibit HUD from paying lenders any FHA insurance benefits, unless the lender has provided documentation on its compliance with loss mitigation requirements.
A decade after the devastating foreclosure crisis, we continue to see significant problems with the servicing of FHA loans that unnecessarily put homeowners at risk of foreclosure,” said Waters. “My bill, the FHA Foreclosure Prevention Act, would ensure that FHA servicers help families experiencing financial hardship avoid foreclosure so that they can remain in their homes.”
Senator Catherine Cortez Masto (D-NV) has introduced S. 2698 as a companion measure to H.R. 5555 in the Senate—a bill that Senator Elizabeth Warren (D-MA) was an original cosponsor on the bill of.
“NHLP supports strengthening HUD’s oversight of FHA loan servicers,” said Shamus Roller, National Housing Law Project executive director. “For too long, homeowners experiencing financial hardship have suffered from the failure of servicers to comply with basic loss mitigation requirements.”
“This much-needed bill will promote sustainable homeownership for low and moderate-income borrowers,” said Alys Cohen, an attorney with the National Consumer Law Center. “By increasing
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