Legal Alert

HUD OIG Again Takes Issue with Mortgage Servicer Websites Addressing CARES Act

by the Mortgage Banking Group
October 5, 2020

As previously reported, in April 2020 the U.S. Department of Housing and Urban Development Office of Inspector General (HUD OIG) issued a statement criticizing how mortgage servicer websites were providing information on the CARES Act. The HUD OIG advised that it reviewed the websites of 30 mortgage servicers that together service approximately 90 percent of FHA loans, and found that “those websites provided incomplete, inconsistent, dated, and unclear guidance to borrowers related to their forbearance options under the CARES Act.”

In a statement dated September 30, 2020, the HUD OIG advised that it “found that despite virtually all of the top 30 servicers updating information on their websites on options available to borrowers during this COVID-19 emergency, some servicer websites continue to provide information that could mislead or confuse borrowers or provide little or no information to borrowers related to their forbearance options under the CARES Act.”

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