Final answer:
The servicer of an FHA-insured mortgage would likely recommend a repayment plan or a loan modification as the first loss mitigation options to a client who has been recently laid off. This is in line with FHA's efforts to help homeowners avoid foreclosure and to address past criticisms regarding discriminatory practices.
Step-by-step explanation:
If a client has been laid off from her job and has an FHA-insured mortgage, the servicer would likely suggest a loss mitigation option aimed at helping the homeowner avoid foreclosure. The specific option recommended often depends on the individual circumstances, but typically, servicers will first explore repayment plans or loan modifications. These are designed to help the borrower catch up on missed payments or to modify the loan terms to make the mortgage more affordable.
Historically, there have been criticisms of the FHA policies, which some argue led to discriminatory practices such as redlining. This term refers to the practice where certain neighborhoods, often those with poor conditions, older houses, or significant minority populations, were deemed ineligible for mortgage refinancing or insurance. However, the modern FHA and its servicers now have policies in place designed to prevent such discrimination.