The Federal Housing Administration has completed its reviews of the largest FHA servicing shops and is now processing notices of violations of its loss mitigation and foreclosure standards.
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FHA staff is meeting with servicers to discuss the findings, FHA commissioner David Stevens told reporters after speaking at an MBA servicing conference in Washington.
The servicers, he said will "have a chance to respond," before the agency finalizes a notice of violations.
He noted the largest penalties will be assessed on servicers that did not meet FHA's requirements to work with borrowers and prevent foreclosures.
The agency has published detailed requirements for loss mitigation. Mortgage bankers that violate the code face treble damages.
