The U.S. Department of Housing and Urban Development (HUD) says it is contracting with Michaelson, Connor & Boul Inc. (MCB) of Huntington Beach, Calif., to serve as a mortgagee compliance manager. MCB will be responsible for ensuring that Federal Housing Administration (FHA)-approved lenders and servicers convey foreclosed properties to the FHA in acceptable condition.
MCB will establish a central office for lender compliance oversight in Oklahoma City that is projected to create 75 to 100 new professional jobs. HUD's National Servicing Center in Oklahoma City will be responsible for the direct oversight of the new compliance manager contract.
‘This new contract is part of FHA's continuing effort to reduce risk, increase return and improve efficiency in the resale of its inventory of foreclosed property,’ says HUD Deputy Assistant Secretary Vicki Bott. ‘It is critically important that FHA recaptures as much of our claims through the eventual sale of these properties, and this compliance management firm will help us do that.’
The contract is awarded under FHA's Management and Marketing (M&M) III disposition structure. Under M&M III, the process of conveying foreclosed properties to FHA has been centralized and streamlined in order to simplify the process for FHA's lenders and servicers, HUD says, as well as to improve communication and the dissemination of program guidance and requirements.
As the largest seller of real estate in the country, HUD has been outsourcing the disposition of its foreclosed FHA inventory under the M&M contracting process since 1999. After conducting extensive research into market-based best practices, HUD has developed its new M&M III disposition structure to streamline its operations, capitalize on the expertise of potential vendors and provide flexibility in a changing environment, the agency adds.
HUD says lenders and servicers seeking to convey foreclosed properties to FHA will find a more efficient and less complex process under M&M III than under previous M&M contracts.