United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office Resources, Community, and Economic Development Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1995-10-18 monographic deposited born digital 53 p. GA 1.13:RCED-96-2 https://www.govinfo.gov/app/details/GAOREPORTS-RCED-96-2 P0b002ee180389cad f:rc96002 DGPO 2010-08-12 2011-03-23 GAOREPORTS-RCED-96-2 machine generated eng fdlp REPORT GAOREPORTS-RCED-96-2 RCED-96-2 Mortgage programs Mortgage loans Foreclosures Losses Mortgage protection insurance Loan defaults Financial analysis Homeowners insurance Financial management Mutual Mortgage Insurance Fund HUD Single-Family Insurance System HUD Activity Tracking System HUD Single Family Mortgage Notes System HUD Single Family Mortgage Assignment Program Letter Report RCED

Pursuant to a congressional request, GAO reviewed whether the Housing and Urban Development's (HUD) mortgage assignment program: (1) helps borrowers avoid foreclosure; (2) reduces the Federal Housing Administration's (FHA) foreclosure losses; and (3) can be improved to reduce such losses.<p/>GAO found that: (1) HUD mortgage assignment program helps borrowers avoid immediate foreclosure, but is not successful in helping borrowers avoid foreclosure or retain their homes on a long-term basis; (2) about 52 percent of the 68,700 borrowers in the mortgage program will lose their homes through foreclosure, and the remaining borrowers will pay off their loans after the sale or refinancing of their homes; (3) the mortgage assignment program has not reduced FHA foreclosure losses, since FHA incurs additional costs under the program which more than offset the costs from saving some loans from foreclosure; (4) FHA will incur losses of more than $1.5 billion for those borrowers accepted into the mortgage program since fiscal year 1989; (5) although FHA borrowers' premiums pay for these additional losses, it is more difficult for the single-family insurance program to remain self-sufficient; (6) options that would reduce additional program losses include reducing the 3-year relief period provided to borrowers, setting a time limit on eliminating delinquencies, and accepting borrowers that can pay half or more of their mortgage payment; and (7) FHA would have to require borrowers to begin full mortgage payments within a few months after entering the program to eliminate additional program losses. https://www.govinfo.gov/content/pkg/GAOREPORTS-RCED-96-2/html/GAOREPORTS-RCED-96-2.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-RCED-96-2/pdf/GAOREPORTS-RCED-96-2.pdf GAO/RCED-96-2 https://www.govinfo.gov/app/details/GAOREPORTS-RCED-96-2 Letter Report GAO/RCED-96-2; Homeownership: Mixed Results and High Costs Raise Concerns About HUD's Mortgage Assignment Program; Mortgage programs Mortgage loans Foreclosures Losses Mortgage protection insurance Loan defaults Financial analysis Homeowners insurance Financial management Mutual Mortgage Insurance Fund HUD Single-Family Insurance System HUD Activity Tracking System HUD Single Family Mortgage Notes System HUD Single Family Mortgage Assignment Program Title 12 Section 1711 12 U.S.C. 1711