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HUD monitoring REO vendors

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The U.S. Department of Housing and Urban Development (HUD) has hired a consultant to help it track the performance of vendors it employs to manage, maintain, market and sell foreclosed FHA homes.HUD is using a real estate owned (REO) performance evaluation model developed by Walzak Consulting Inc. of Deerfield Beach, Fla., to measure whether vendors are following HUD guidelines and providing cost-effective and reliable performance, the company said.The model will allow HUD to understand what factors produce the best results when measuring vendor performance, and reward top-performing companies by assigning them more properties to manage.Under a new Fedeal Housing Administration management and marketing program detailed in a November Federal Register notice, HUD employs three types of vendors to help it dispose of REO properties: Mortgagee compliance managers, who are intended to protect HUD's interests by reviewing property inspections and providing guidance to lenders on their respons...