Take a look at your monthly mortgage payment. If you see a line every month that says, “FHA”, that means that every single month, you are making an insurance policy premium payment for FHA insurance. What does that insurance provide?  It provides that banks MUST work with borrowers prior to filing a foreclosure…..

GOAL. The Congress has adopted a national housing goal expressed as

“a decent home and a suitable living environment for every American

family”.

A. HUD’s Role. HUD is charged with implementing the programs

enacted by Congress to achieve this goal.

B. Housing’s Role. The Office of Housing’s role is to further

program objectives by exercising effective management practices

while protecting the interests of HUD with prudent fiscal

management. For the most part, these programs are carried out

through the private mortgage markets, with HUD-approved

mortgagees originating and servicing individual mortgages.

1-2 HUD MONITORING. This Handbook provides procedural standards and

guidelines that must be followed when servicing an FHA/HUD-insured

mortgage regardless of the entity holding and/or servicing the

mortgage.

The mortgagee’s servicing operations will be monitored and, where

necessary, corrective action will be required. Refusal to take the

corrective action or continued noncompliance with HUD requirements

will result in the Department taking appropriate action (i.e.,

including, but not necessarily limited to, an administrative and/or

monetary sanction against that mortgagee (also, see Paragraphs 8-7F1

and 8-7G).

 More information at HUD.gov