FHA REO Management and Marketing Contractors
FHA Management and Marketing Structure (M&M III)
In 2010, HUD launched the third generation of its Management and Marketing (M&M) program, known as M&M III. These new contracts streamline HUD's operations, capitalize on the expertise of its potential vendors, and provide flexibility to meet changing market conditions in the REO industry.
Since 1999, HUD has been outsourcing the disposition of its foreclosed FHA inventory under the M&M contracting process. M&M Contractors manage and market single-family properties owned by, or in the custody of the Department. HUD-owned houses are often referred to as HUD Homes. These are homes that had an FHA-insured mortgage, the homeowners defaulted, and the lender foreclosed. The lender then deeded the home to the Secretary of HUD in exchange for an insurance claim payment.
Under prior agreements, M&M contractors were responsible for both maintenance and marketing of the Department's real estate-owned or REO properties. However, under M&M III these functions have been separated to increase the effectiveness of the Department's asset disposition program.
The Mortgagee Compliance Manager is responsible for ensuring compliance with HUD's conveyance standards as related to title, occupancy, and property condition. Field Service Managers are responsible for property maintenance and preservation and the Asset Managers are responsible for the sale of the homes. There will be one Mortgagee Compliance Manager located in Oklahoma City, Oklahoma. HUD's National Servicing Center will have direct oversight over the Mortgage Compliance Manager. There will be one Field Service Manager and one Asset Manager contractor in an area. Each contractor will establish an office within its awarded geographic area. HUD's Homeownership Centers in Atlanta, Georgia; Denver, Colorado; Philadelphia, Pennsylvania and Santa Ana, California are responsible for the direct oversight of the contracts for the Field Service Manager and Asset Manager within their respective jurisdictions. A map of all M&M III contract areas is available here.
The key elements of the disposition structure include:
- Mortgagee Compliance Manager (MCM)
- Field Service Manager (FSM)
- Asset Manager (AM)
Mortgagee Compliance Manager (MCM)
The Mortgagee Compliance Manager (MCM) performs a variety of pre- and post- property conveyance services to ensure that HUD's interests are protected. These services include: reviewing property inspections to ensure the property is in conveyance condition; resolving conveyance exceptions; providing guidance to Mortgagees related to pre-conveyance and post-conveyance responsibilities; and leveraging HUD's software and information systems to execute and complete the tasks within this contract.
Field Service Manager (FSM)
Field Service Managers (FSM) are companies that provide property preservation and protection services consisting of, but not limited to, inspecting the property, securing the property, performing cosmetic enhancements/repairs, and providing on-going maintenance. Properties acquired by HUD are assigned to FSMs. There is one contractor per geographic area for each HOC.
Asset Manager (AM)
The Asset Managers (AM) are responsible for the marketing and sale of REO property. There will be one AM contractor to market HUD-owned properties within the selected contract area. FHA property listings and property agent contact information are available at HUD's REO listing site, HUD Home Store.
More Guidance
M&M III Federal Register Notice
Federal Register, Vol. 75, No. 226, Wednesday, November 24, 2010 Policies and Procedures Pertaining to Changes in Listing Brokers Participating in the Federal Housing Administration (FHA) Management and Marketing III Program
M&M III Reference Materials
- Read about HUD's Mortgagee Compliance Manager
- M&M III HOC Geographic Area Map
For further information, please visit the FHA Resource Center.
Redelegation of Authority: M & M Contractors
HUD's Management and Marketing Contractors maintain and sell HUD-owned homes on behalf of the Department of Housing and Urban Development. The following is a list of authorized officials employed by HUD's Management and Marketing Contractors. The officials listed in the below files are authorized to execute routine documents necessary in the management and sale of HUD's Single Family Acquired properties, in their respective contract areas, in accordance with Federal Register Notice FR-5076-D-06 dated October 12, 2006 and Federal Register Notice FR-5557-D-08 dated June 5, 2012.
Homeownership Center | File revision date |
National Servicing Center | 09-04-2024 |
Philadelphia | 03-07-2025 |
Atlanta | 11-27-2024 |
Denver | 03-10-2025 |
Santa Ana | 09-04-2024 |
Mortgagee Compliance Manager (MCM) Information
HUD has centralized its Mortgagee compliance functions into a single point of contact designated as the Mortgagee Compliance Manager (MCM). All documentation related to Mortgagee compliance must be electronically scanned and uploaded into the P260 Portal. HUD's MCM is Information Systems Networks, Corp., (ISN).
HUD refreshes cases that are 60 or more days delinquent in P260 on the first Sunday following the 15th of every month.
P260 access:
Mortgagees - Mortgagees are required to designate a primary SuperUser and to set up access for any vendor or agent used in managing its Property Preservation & Protection activities. The Mortgagee may assign its vendor or agent a SuperUser status in the P260 Portal, which provides that vendor or agent the ability to set up access on your company's behalf. Mortgagees are reminded that the Mortgagee is fully responsible for the actions of its vendors and agents in carrying out actions on the Mortgagee’s behalf.
Vendors/Agents - The Mortgagee must give you access to the P260 Portal. The Mortgagee is permitted to provide vendors or agents SuperUser access so you may provide access to your staff. You must have a separate P260 login for each Mortgagee you represent or perform work for in the system.
The mailing address for the MCM is:
Information Systems Networks, Corporation Western Operation Center
Attention: Mortgagee Compliance Manager
2000 N Classen Blvd #3200
Oklahoma City, OK 73106
To contact the MCM:
Phone: 1-800-225-5342 (1-800-Call-FHA)
Fax: 1-877-329-2342 (1-877-FAX 2 FHA)
Email: Answers@hud.gov
Please put the appropriate subject in the subject line of your email to avoid service delays:
- Reconsideration/Rescission Requests - Demands/Reconveyances
- Voluntary Reconveyances
- Re-Acquisition (return a property to HUD inventory)
- Notification of Violations
- HECM (Reverse Mortgages) Overallowables
- ISN Customer Service