Mortgagee Monitoring of Default/Claim Rate
Mortgagees can determine if their company has an acceptable default and claim rate that is at or below 150 percent of the default and claim rate for the States where they have underwritten loans by accessing Neighborhood Watch at https://entp.hud.gov/sfnw/nw/
- Select Early Warnings
- Select Single Lender
- Type the first few letters of the Mortgagee’s name or the five digit Lender ID.
- Select Loan Portfolio: 2 Year FHA - With Streamlines, and Submit.
- Ensure the appropriate Mortgagee Name is selected in the Institution Name field, and Submit.
- Select Direct Endorsement Lender from the Mortgagee Selections window.
- Select Seriously Delinquent from the Delinquent Choices window.
- Select the most recent date from the 2 Year Performance Period window.
- Select States from the Show Data for window and Submit.
- View the “Total - All States” Compare Ratio (Compare Ratio for all Direct Endorsement loans including both retail and sponsored) at the bottom of the report table to determine eligibility for LI (< or = 150%)
HUD monitors Mortgagee’s claim and default rates on a quarterly basis.
The reviews will take place using data in Neighborhood Watch following the quarters of the federal fiscal year that end on December 31, March 31, June 30 and September 30.
The data in Neighborhood Watch is normally refreshed on the third weekend following the end of the month, so these reviews will normally take place in January, April, July and October.
Neighborhood Watch Frequently Asked Questions are available at: https://entp.hud.gov/sfnw/public/
Additional information is available in Handbook 4000.1 I.A.5.b. at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
For more information on the Lender Insurance program go to the Lender Insurance Program web page at: https://www.hud.gov/program_offices/housing/sfh/lender/lendins