A government study of home-equity conversion mortgages serviced by four firms has identified around 20,000 loans that could end up in foreclosure because borrowers haven’t paid their taxes or insurance — leaving the Federal Housing Administration on the hook for at least $1.5 billion. Earlier this year, FHA told HECM servicers to notify borrowers if they are delinquent on taxes or insurance and work with them to avoid foreclosure.
This wire news service story is no longer available.
However a copy might still be available at www.post-gazette.com