Legal Alert

HUD OIG Takes Issue with Mortgage Servicer Websites Addressing CARES Act

by the Mortgage Banking Group
April 29, 2020

The U.S. Department of Housing and Urban Development Office of Inspector General (HUD OIG) issued a statement dated April 27, 2020, that is not complimentary about how mortgage servicer websites are providing information on the CARES Act.

The HUD OIG notes that on April 17, 2020, which was 22 days after the adoption of the CARES Act, it reviewed the websites of the top 30 mortgage servicers regarding information provided on the CARES Act. The HUD OIG states that its “review of the 30 servicers’ websites, which service approximately 90 percent of FHA loans, revealed that those websites provided incomplete, inconsistent, dated, and unclear guidance to borrowers related to their forbearance options under the CARES Act. HUD OIG plans to initiate additional work related to forbearance offered by FHA servicers under the CARES Act.”

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