Lacking sufficient guidance, CitiMortgage improperly filed for 66 partial claims before completing loan modifications and reinstating the loans, according to the Department of Housing and Urban Development inspector general. The finding arose from an IG audit of CitiMortgage’s processing of partial claims under the FHA-Home Affordable Modification Program. The audit was based on the financial institution’s volume of partial claims among lenders in the St. Louis, MO, metropolitan area. FHA-HAMP is a loss mitigation option, which uses a partial insurance claim, combined or separate from a loan modification, to reinstate a mortgage. Under a partial claim, FHA reimburses a lender’s advance of funds on behalf of the borrower in order to reinstate a delinquent mortgage. The IG said CitiMortgage did not have adequate policies and procedures to ensure the FHA-HAMP partial claims, combined with ...