The HUD Management & Marketing program (M&M) changed to a new format on July 31, 2010. The original M&M contractors were responsible for both the management and sales of HUD homes. The new program, M&M lll, now provides for four different types of vendors for property management and marketing:
- Field Service Managers (FSM) These are private companies that maintain and manage HUD homes in a certain area, and are responsible for the inspection, repair and maintenance until sold.
- Asset Managers (AM) Private companies, they are responsible for listing and selling the homes.
- Mortgagee Compliance Manager (MCM) Private companies that are responsible for the pre- and post- conveyance duties. This would include claims approvals, review of title and inspections.
- Oversight Monitors (OM) These private companies oversee the entire process of disposition of properties. They will also review the performance of the REo portfolio.
There are 4 Home Ownership Centers (HOCs) located in Philadelphia PA; Atlanta GA; Denver CO; Santa Ana CA.
HUDs program changes were developed to streamline the process of property disposition. Vendors will be used in their own areas of specialization. Each area may have several FSMs and AMs. This will encourage competition, reduce risk and most importantly increase potential returns.
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