FHA Credit Watch Great at Finding – Lousy at Terminating – Bad FHA Lenders, Watchdog Finds
July 6, 2006
The Department of Housing and Urban Development is rejecting a watchdog’s call for administrative action against lenders that delivered loans to the agency’s flagship single-family insurance program – after they have been terminated by its Credit Watch compliance monitoring program. Launched in 1999, the Credit Watch program allows HUD to terminate the approval agreement of lenders whose default and claim rates for loans endorsed within the preceding 24 months exceeds the regional and national…