HUD/FHA-Insured Homeowners and Properties in End-Stage Default and Foreclosure: National Context and Experiences in Massachusetts
The author, a former Boston Fed visiting scholar, introduces and summarizes the issue brief series on HUD/FHA-insured properties in end-stage default and foreclosure, as well as key findings.
Tensions exist in HUD/FHA’s dual mandate to be responsive both to homeowners’ needs and to the mortgage-lending industry. The limited data suggests that nonprofit organizations have been better at restabilizing homeowners with loan modifications.
This brief offers foreclosure outcomes, both in general and for a set of properties in Lowell, MA, including a literature review that points to a range of overall negative effects of foreclosures for households, neighborhoods, and municipalities.
This brief examines aspects of HUD regulations and policies for households in end-stage default, highlights how these policies and requirements are inconsistently applied, and suggests changes that might lead to greater compliance and utilization.
The author reviews approaches for redressing illegal or unfair lender/servicing procedures for foreclosure, presents innovative efforts to provide additional foreclosure protections, and sums up the health of the FHA’s Mutual Mortgage Insurance Fund.