0 comments      Tweet This Stumble Del.icio.us Reddit

I applaud the FHA working in concert with the OIG (Office of Inspector General) in researching the underwriting guidelines of 15 mortgage lenders. The main thrust of the investigation is to make sure that these mortgage lenders are not issuing loans that would undermine the financial viability of the FHA. These 15 mortgage lenders had a higher than normal incidence of defaults on the loans that they issued.

With the FHA being one of the major sources of home mortgage financing it is imperative that they are protected from what we have been through recently with Fannie and Freddie loans.

David H. Stevens, Assistant Secretary of Housing for the FHA has said, “It’s important to note that FHA has been taking actions against poorly performing lenders since the day I took this job six months ago. This cooperative effort with the OIG is another indication that we will not tolerate lending practices that pose a risk to the FHA fund, and we have pledged to assist the Inspector General’s Office in any way we can. The Inspector General’s initiative will help us determine whether there is fraud at these companies and better manage risk in the long run.”

We here at RateWindow will be cheering you on!