HUD’s Mortgagee Review Board (Board) is authorized to take action against HUD/FHA-approved lenders/servicers who are not in compliance with FHA requirements. The cases before the Board can involve mortgage loan servicers who inadvertently or knowingly violate HUD/FHA program statutes, regulations, and handbook requirements. Notice that there are no exceptions for materiality in which HUD might escalate to the Board. Some key cases that the Board lists on their website involve issues where lenders/servicers (a) fail to implement quality control plans and (b) fail to perform loss mitigation AND service loans following FHA requirements. The number of FHA loans we review with servicing defects ranges from 15% to 50% regularly. Is your servicing quality control plan revealing the most critical servicing errors for government-insured loans? Are these results getting delivered to senior management?

See more about HUD’s Mortgagee Review Board at the following link:

https://www.hud.gov/program_offices/housing/sfh/mrb/mrbabout