At this meeting, approximately 20 MSC members spent two hours discussing the FHA foreclosure and conveyance processes, loss mitigation/loan modification structures, and data collection procedures. Several ideas for revamping the FHA conveyance model were discussed. There was also consensus that a streamlined process that is standardized across the industry, easily understood, updated regularly, consistent and transparent would serve the entire industry and consumers well and should be explored. Members also discussed the need for more flexible loss mitigation and loan modification options for all government loans and why the riskiest borrowers have the fewest options available. It was also noted that in a rising interest rate environment, the suite of modification options for government loans will become a challenge that needs to be addressed.
- Form a data working group to evaluate what data is needed for analysis and what the data ask should be to MSC members.
- Compare FHA, GSE and VA conveyance models to determine best practices and potential for uniformity in conveyance requirements.
- Examine whether aligning the FHA foreclosure timeline with the GSE’s single timeline could create a single process that is standardized and applies across all agencies.
- Continue intake from MSC members on loss mitigation and loan modification options for all government loans.