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This morning, FHA issued the news release below. FHA is very serious about improving the quality of the program. Keep in mind though that many of these “actions” were taken against lenders who had already gone out of business due to the economy. Therefore, they simply did not renew their FHA license.

Although getting rid of the bad actors in the mortgage business is a good thing, customers can expect ever increasing difficulty in getting approved for a mortgage and also higher costs and interest rates as many good loan officers are driven out of the business along with the bad.

Here is the full text of the news release:

The Federal Housing Administration’s Mortgagee Review Board (MRB) today published a notice in the Federal Register to announce dozens of administrative actions against FHA-approved lenders who failed to meet its requirements. This year alone, the MRB took nearly 1,500 administrative sanctions against lenders, including reprimands, probations, suspensions, withdrawals of approval, and civil money penalties.

“Lenders should know by now that FHA will not tolerate fraudulent or predatory lending practices,” said FHA Commissioner David Stevens. “Any FHA-approved lender that does business with us must follow our standards. If we determine that our partners are not playing by the rules, we will take action – it’s that simple.”

FHA’s Mortgagee Review Board sanctions FHA-approved lenders for violations of the agency’s program requirements. For serious violations, the Board can withdraw a lender’s FHA approval so that the lender cannot participate in FHA programs. In less serious cases, the Board enters into settlement agreements with lenders to bring them into compliance. The Board can also impose civil money penalties, probation, suspension, and issue letters of reprimand.

For a full listing of the actions taken by the Board, visit HUD’s website.

History of FHA


Related posts:

  1. HUD Cracks Down On FHA Renewal Slackers
  2. FHA Continues Lender Crackdown
  3. New HUD Mortgagee Letter Provides Details Of First Time Home Buyer Cash Advance
  4. New FHA Mortgagee Letter – No Rental Income From Present Home
  5. Official FHA Conference Call – Implementation of the Final Rule to Strengthen Risk Management

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Filed under: FHA guidelines

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