New Mexico Mortgage Finance Authority Named a Top Performer

The New Mexico Mortgage Finance Authority has been named a Tier 1, or top performer, by the U.S. Department of Housing and Urban Development as part of HUD’s Federal Housing Administration (FHA) loss mitigation initiative.

As a Tier 1 servicing lender, MFA is eligible for additional incentives - from an additional $100 payment for each special forbearance agreement to a two-month extension on pre-foreclosure sale time frames without prior HUD approval.
HUD implemented the tier ranking system in 2000 as a pilot to measure servicers’ use of HUD’s loss mitigation program. Servicers in Tiers 3 and 4 are usually targeted for training by HUD as well as possible investigation and audit.

Jay Czar, MFA’s executive director, says loss mitigation efforts are critical to MFA’s mission. Around four percent of all New Mexico home loans are delinquent, he says, and New Mexico is only second to Colorado in the Rocky Mountain region in the number of foreclosures.

Irene Moreno, MFA loan collections workout specialist, says households often fall into delinquency through events such as the loss of a job or an accident that leaves someone in the household disabled.

SOURCE: New Mexico Business Journal