FHA Reviewing Mortgage Lenders With High Foreclosure Rates

by juliaredstone | April 9, 2010 at 06:56 am

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The FHA and HUD are taking risking management more seriously now. They are now more efficient on determining whether there is a frauds and will be able to better manage risks in the long run.

HUD took up the initiative earlier this year to review mortgagelenders having high foreclosure rates. A conference had been summoned on 12th January by the inspector general of HUD – Kenneth Donohue together with FHA commissioner David Stevens. The focus was on mortgage firms holding excessive number of foreclosures covered by FHA insurance.

The Inspector General of HUD served subpoenas to as many as 15 mortgage firms across America to collect relevant documents and figures on the loans that have failed. These entities held a minimum of 1,000 FHA mortgages of different sizes and were all over the country