Reforming the FHA’s Foreclosure and Conveyance Processes

Brief

Reforming the FHA’s Foreclosure and Conveyance Processes

Abstract

In this brief, the third in a series prepared by HFPC researchers with support from the mortgage servicing collaborative, the authors address how the Federal Housing Administration (FHA) foreclosure and conveyance processes can be changed to bring down costs and create efficiencies. With proprietary data provided by Collaborative members, we explore foreclosure related costs and processes for FHA-insured loans. Specifically, we examine:

  • How changes to the foreclosure timeline can increase efficiency; and
  • How to improve the FHA conveyance process and reduce costs for the FHA, neighborhoods, consumers, and servicers.

The authors conclude that the current FHA foreclosure and property disposition processes result in avoidable delays, costs, and losses for HUD and servicers that are eventually passed on to neighborhoods and consumers in the form of depressed property values, neighborhood blight and reduced access to FHA credit for future borrowers.

Research Area: 

Centers

To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.

LATEST IN Housing and Housing Finance

To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.