Government Report: HUD Improperly Sold Distressed Mortgages

On July 25, 2017 the New York Times reported that an Inspector General’s report shows that the Dept. of Housing & Urban Development (HUD) sold thousands of distressed mortgages to private equity firms and hedge funds without following proper rules for setting up the program.  The report buttresses arguments put forth by Mobilization for Justice (MFJ) in a class action lawsuit against HUD and two mortgage firms whose purchase of distressed mortgages led to quick foreclosures and unsustainable loan modifications that will lead to foreclosure.  MFJ alleges that HUD’s actions have had a discriminatory impact on African-American neighborhoods in NYC.