But it *is* a marketability issue, which HUD is concerned about as well. If you don't think a property with a dirt front and rear yard has marketability issues as opposed to a grass yard, I can't help you.
HUD also specifically requires positive drainage and makes reference to having stabilised soil to prevent erosion, standing water etc. In new construction they also require you escrow for lack of landscaping (due to weather), so obviously it's a concern. I'd suggest calling your local HOC, explaining the situation and seeing what the "local" take on it is. I would *not* just consider it cosmetic and let it go.
NOT require an escrow....but ALLOW escrow to hold funds due to inclimate weather.
If you have proper drainage, the lack of landscaping should not be a problem. In most areas, WEEDS would be doing quite well to ward of erosion.