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Duluth Property Preservation Contractors REO Business Solutions FSM


Duluth Property Preservation Contractors REO Business Solutions FSM

Duluth Property Preservation Contractors REO Business Solutions FSM


GDO Report

DULUTH - U.S. Department of Housing and Urban Development celebrates unprecedented level of success of their launch of the third generation of its FHA Management and Marketing Structure known as "M&M III."  

FHA's newest M&M III structure was launched on August 30 of 2010 and a one month long inspection and evaluation of their first three months overwhelmingly shows dramatically improved levels of efficiency and productivity.

These new contracts have greatly streamlined HUD's operations, are significantly capitalizing on the expertise of top level Field Service Managers (FSM) vendors such as industry favorite REO Business Solutions, and provide flexibility to meet changing market conditions in the REO industry.

On August 30, HUD launched the third generation of its Management and Marketing (M&M) program, known as M&M III. These new contracts will streamline HUD's operations, capitalize on the expertise of its potential vendors, and provide flexibility to meet changing market conditions in the REO industry.

HUD Announces Over $4 Million to GA Housing Counseling Agencies to Help Families Find and Keep Housing
ATLANTA– U.S Department of Housing and Urban Development announced today over $4 million to over 20 Georgia Housing Counseling Agencies in an effort to help families find decent housing and to prevent future foreclosures. Building on the momentum and partnership with the Piece by Piece Atlanta Regional Foreclosure Initiative, the HUD funding will boost efforts to help eligible homeowners stay in their homes.

"...HUD Partners with Piece by Piece Foreclosure Initiative to Innovatively and more Effectively Address the Atlanta Regional Foreclosure Crisis"

The Obama Administration announced on December 23, 2010, nearly $73 million in housing counseling grants to more than 500 national, regional and local organizations.

“Housing Counseling Agencies are on the front lines of helping families who are desperate to remain in their homes and this grant award is crucial in helping housing counseling agencies help them,said Ed Jennings, Jr., Southeast Regional Administrator, U.S. Department of Housing and Urban Development. “Working hand in hand with the Piece by Piece Atlanta regional foreclosure initiative, HUD is looking forward to innovatively addressing this major problem.”

Housing counseling grants will assist families in becoming first-time homeowners and remaining homeowners after their purchase. HUD-approved counseling agencies not only provide homeownership counseling, but also offer financial literacy training to renters and homeless individuals and families.

“Metro Atlanta continues to be one of the hardest-hit areas in the country when it comes to foreclosures,” said Atlanta Mayor Kasim Reed. “I applaud HUD for their continued vigilance in stabilizing our communities through innovative and vital funding programs.This funding from HUD is critical to the region’s financial recovery and will help our residents and communities through the process of economic recovery.”

National and regional agencies distribute much of HUD’s housing counseling grant funding to community-based grassroots organizations that provide advice and guidance to low- and moderate-income families seeking to improve their housing conditions. In addition, these larger organizations help improve the quality of housing counseling services and enhance coordination among other counseling providers.

“The Piece by Piece initiative and its more than 150 partners are honored to work with HUD to help many of our neighbors in the Atlanta region avoid foreclosure and stay in their homes,” said John O’Callaghan, President and CEO of Atlanta Neighborhood Development Partnership. “The counseling that is made possible by these grants is truly an investment in the people and families of metro Atlanta and Georgia.”

The organizations that provide housing counseling services help people become or remain homeowners or find rental housing, and assist homeless persons in finding the transitional housing they need to move toward a permanent place to live. Grant recipients also help homebuyers and homeowners realistically evaluate their readiness for a home purchase, understand their financing and downpayment options, and navigate what can be an extremely confusing and difficult process.

In addition, grantees help combat predatory lending by helping unwary borrowers review their loan documentation, and avoid potential mortgage scams, unreasonably high interest rates, inflated appraisals, unaffordable repayment terms, and other conditions that can result in a loss of equity, increased debt, default, and even foreclosure. Likewise, foreclosure prevention counseling helps homeowners facing delinquency or default employ strategies, including expense reduction, negotiation with lenders and loan servicers, and loss mitigation, to avoid foreclosure. With foreclosures at critical levels nationwide, these services are more important than ever.

HUD awards annual grants under the housing counseling program through a competitive process. Organizations that apply for grants must be HUD-approved and are subject to performance reviews to maintain their HUD-approved status.

Since 1999, HUD has been outsourcing the disposition of its foreclosed FHA inventory under the M&M contracting process. M&M Contractors manage and market single-family properties owned by, or in the custody of the Department. HUD-owned houses are often referred to as HUD Homes. These are homes that had an FHA-insured mortgage, the homeowners defaulted, and the lender foreclosed. The lender then deeded the home to the Secretary of HUD in exchange for an insurance claim payment.

Under prior agreements, M&M contractors were responsible for both maintenance and marketing of the Department's real estate-owned or REO properties. However, under M&M III these functions have been separated to increase the effectiveness of the Department's asset disposition program.

The Field Service Managers will be responsible for property maintenance and preservation and the Asset Managers will be responsible for the sale of the homes. There will be multiple Field Service Manager and Asset Manager contractors in most areas. This is expected to foster competition among the contractors thereby improving responsiveness, reducing risk and increasing net returns to the agency. Each contractor will establish an office within its awarded geographic area. HUD's Homeownership Centers in Atlanta, Georgia; Denver, Colorado; Philadelphia, Pennsylvania and Santa Ana, California will be responsible for the direct oversight of the new contracts within their respective jurisdictions. A map of all M&M III contract areas is available here.

The key elements of the disposition structure include:

  Mortgagee Compliance Manager (MCM)
  Field Service Manager (FSM)
  Asset Manager (AM)


Mortgagee Compliance Manager (MCM)

The Mortgagee Compliance Manager (MCM) performs a variety of pre- and post- property conveyance services to ensure that HUD's interests are protected. These services include: reviewing property inspections to ensure the property is in conveyance condition; resolving conveyance exceptions; providing guidance to Mortgagees related to pre-conveyance and post-conveyance responsibilities; and leveraging HUD's software and information systems to execute and complete the tasks within this contract.

Field Service Manager (FSM)

Field Service Managers (FSM) are companies such as top level Field Service Managers (FSM) vendor REO Business Solutions - that provides property preservation and protection services consisting of, but not limited to, inspecting the property, securing the property, performing cosmetic enhancements/repairs, and providing on-going maintenance. Properties acquired by HUD will be assigned to FSMs. There will be multiple contracts awarded through each HOC, with the FSMs competing for new acquisitions through their respective HOCs.

Asset Manager (AM)
The AMs are responsible for the marketing and sale of REO property. Multiple AMs will be contracted to market HUD-owned properties within their selected contract area within their geographic HOC areas. FHA property listings and property agent contact information are available at HUD's new REO listing site, HUD Home Store.

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