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Identify FHA borrowers who received a non-HUD-approved loss mitigation option and ensure that the borrowers receive an updated approved HUD loss mitigation option.

Publication Report

2023-KC-1001 | June 13, 2023

Nationstar Generally Did Not Meet HUD Requirements When Providing Loss Mitigation to Borrowers of Delinquent FHA-Insured Loans

We audited Nationstar Mortgage, LLC’s (doing business as Mr. Cooper (Nationstar)) compliance with the Federal Housing Administration’s (FHA) requirements for providing loss mitigation assistance to borrowers after their COVID-19 forbearance ended. We… more

Related Recommendations

Housing

  •  
    Status
      Open
      Closed
    2023-KC-1001-001-A

    Review the sampled loans for which borrowers did not receive appropriate loss mitigation options to ensure that the borrowers were remedied by Nationstar, if possible, and take administrative actions if appropriate.

  •  
    Status
      Open
      Closed
    2023-KC-1001-001-B

    Implement controls and provide employee training to help prevent noncompliance in loss mitigation.

  •  
    Status
      Open
      Closed
    2023-KC-1001-001-C

    Update and implement controls to the Nationstar internal system to ensure the correct application of COVID-19 partial claims.

  •  
    Status
      Open
      Closed
    2023-KC-1001-001-D

    Identify loans with COVID-19 recovery partial claims that were affected by the improper application of partial claims funds and update the accounts.

  •  
    Status
      Open
      Closed
    2023-KC-1001-001-F

    Update the servicing script to include information related to the HAF program, identify borrowers who may benefit from HAF, and conduct outreach to these borrowers.