California Company Hired to Oversee Inventory of HUD Homes

""Michaelson, Connor, & Boul, Inc."":http://www.mcbreo.com/ (MCB), of Huntington Beach, California was recently hired by ""HUD"":http://portal.hud.gov/portal/page/portal/HUD to serve as

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the sole entity responsible for mortgage compliance. The company will be responsible for ensuring that Federal Housing Administration (FHA)-approved lenders and loan servicers convey foreclosed properties to the FHA in acceptable condition.

MCB will establish a central office for lender compliance oversight in Oklahoma City, which is expected to create

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75-100 new jobs. HUD's National Servicing Center, also located in Oklahoma City, will be responsible for the direct oversight of the new compliance manager contract.

""This new contract is part of FHA's continuing effort to reduce risk, increase return, and improve efficiency in the resale of its inventory of foreclosed property,"" said Vicki Bott, HUD deputy assistant secretary. ""It is critically important that FHA recaptures as much of our claims through the eventual sale of these properties, and this compliance management firm will help us do that.""

The contract was awarded under FHA's Management and Marketing (M&M) III disposition structure. Under M&M III, HUD said lenders and loan servicers seeking to convey foreclosed properties to FHA will find a more efficient and less complex process than under previous M&M contracts.

HUD has been outsourcing the disposition of its foreclosed FHA inventory under the M&M contracting process since 1999. After conducting extensive research into market-based practices, HUD developed its new M&M III disposition structure to streamline its operations, capitalize on the expertise of potential vendors, and provide flexibility in a changing environment.