Servicers of Home Equity Conversion Mortgage loans should brace for additional on-site supervisory audits, according to attorneys.

The Senate Appropriations Committee has directed HUD to review Ginnie Mae’s overwhelming reliance on outside contractors to perform key func-tions, including oversight, risk management and compliance.

The Department of Veterans Affairs has issued guidance to mortgage servicers regarding the process of sending loss mitigation letters to borrowers who have fallen behind on their monthly payments. The guidance encourages servicers to work with distressed borrowers to avoid foreclosure.

Users regained access to the agency’s Loan Review System after it was temporarily shut down for four days last month due to server errors. Efforts to fix the problem resulted in loss of data and documents.

During a congressional hearing this week, HUD Secretary Ben Carson faced tough questions about the department’s regulatory oversight and servicing processes.

The Community Home Lenders Association last week urged lawmakers to pass legislation to raise salaries of Ginnie Mae’s professional staff.