The Department of Housing and Urban Development announced officially this week through Mortgagee Letter 12-07 that it has hired a new mortgage servicing contractor for its single family properties, including reverse mortgages.
Irving, Texas-based Deval, LLC is now responsible for Federal Housing Administration Single Family assets including Home Equity Conversion Mortgages (HECMs). Servicers have the option to assign loans to HUD through Deval once they reach 98% of the max claim amount.
Deval took over as HUD’s contractor in March and Mortgagee Letter 2012-07 made the announcement with details this week. Prior to Deval being selected, C&L Service Corporation was HUD’s servicing contractor.
Sources tell RMD that it has been a slow transition with long wait times since Deval began servicing in March.
View the Mortgagee Letter.
Written by Elizabeth Ecker