As HUD’s Risk Assessment contractor MBI constantly reviewed the existing loan sales process by HUD’s Asset Sales Office and provided recommendations to minimize or reduce these risks
HUD’s Asset Sales Office is tasked with selling HUD-held single family loans, multifamily loans and congregate care property loans to the public by sealed bid auctions. By far the largest and most common sales are the single family loans which occur 2 to 4 times a year. They are sold in lots of 15,000 loans to 20,000 loans or more and broken up into various pools based on commonalities. Private investors are vetted and pre-approved to participate in these loans sales and the winning bidders return millions of dollars back to HUD.
As HUD’s Risk Assessment contractor, MBI constantly reviewed and evaluated the existing loan sales process used by HUD’s Asset Sales Office. MBI provided recommendations to minimize or reduce risks by identifying hazards, evaluating probabilities, assessing impact potential, evaluating existing controls, identifying benchmarks, quantifying risk tolerance, and refining the process. To analyze the possible risks, MBI employed a tool developed and utilized by the FAA to model risk in the aviation industry. MBI also offered input in regard to pooling loans to maximize the recovery amounts. In addition, MBI provided HUD notification of all current legislation with potential to affect these sales, and also made it aware of any personal, identifiable information in the documents.