HUD audit finds REO field servicers often underpaid

The recent Office of Inspector General audit of the U.S. Department of Housing and Urban Development reveals an uneven application of compensation to property preservationists.

Despite promise of the third generation of the Management & Marketing to “streamline HUD’s operations, capitalize on the expertise of its potential vendors, and provide flexibility to meet changing market conditions in the REO industry,” the program often fails to properly compensate the handlers of these properties.

However, the OIG finds several examples of field servicers being overpaid — but in more cases underpaid — in regards to bids on real estate properties.

“HUD did not always pay field service managers in accordance with their contractors, resulting in an estimated net underpayment of $553,784,” the report states, citing five inadequate procedures taking place across HUD offices.

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MONDAY: NY A.G. SCHNEIDERMAN, HUD SECRETARY DONOVAN TO ANNOUNCE MAJOR INITIATIVE ON LONG ISLAND

News from Attorney General Eric T. Schneiderman

FOR PLANNING PURPOSES

June 17, 2012

New York Attorney General’s Press Office / 212-416-8060 / 518-473-5525/dani.lever@ag.ny.gov

Housing and Urban Development Office of Public Affairs /202-708-0980

Twitter: @AGSchneiderman

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B of A to pay discrimination settlement against California homeowner, accused of refusing to refinance woman’s mortgage because she was on maternity leave

B of A to pay discrimination settlement | bank, woman, pay – The Orange County Register.

Bank of America agreed to pay $161,180 to settle accusations that it refused to refinance an Irvine woman’s mortgage because she was on maternity leave, the U.S. Department of Housing and Urban Development announced.

According to a HUD statement, the woman applied to refinance her mortgage in December 2009 after a bank agent offered her a new home loan at a 5 percent interest rate with no costs or fees.

A month later, the bank refused to process her application because she was on maternity leave, telling her she would have to return to work full time to get the new loan approved, the woman maintained. The bank still refused to process the application after the woman protested that she earned the same pay and benefits while on maternity leave.

The Fair Housing Act prohibits lenders from denying home loans to women because they are pregnant or on maternity leave, HUD officials said.

 

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Virginia Ruling Holds that Mortgage Lenders Must Hold Face-to-Face Meetings Before Foreclosure in FHA/HUD Loans – Citybizlist Washington DC

Virginia Ruling Holds that Mortgage Lenders Must Hold Face-to-Face Meetings Before Foreclosure in FHA/HUD Loans – Citybizlist Washington DC.