As it curtails the use of the False Claims Act to stop fraud in FHA lending, the Department of Housing and Urban Development is turning to technology to bring enforcement action and hold lenders accountable for harmful business practices, according to attorneys.
President Trump this week directed the Treasury Department, the Department of Housing and Urban Development and other federal agencies to come up with a housing-finance reform plan that includes the government-sponsored enterprises, FHA and Ginnie Mae.
The volume of FHA and VA loans securitized in Ginnie Mae pools declined in 2018, according to an Inside FHA/VA Lending analysis of agency data. [Includes one data chart.]
Many of the loans with lower credit scores and higher debt-to-income ratios that get flagged for manual underwriting under FHA’s revised Technology Open to Approved Lenders (TOTAL) Mortgage Scorecard likely will not get endorsed, analysts said. [Includes one data chart.]
The wholesale-funded broker is slowly penetrating more deeply in government lending, according to a new Inside FHA/VA Lending analysis. [Includes one data chart.]
Several industry participants have criticized the Federal Housing Finance Agency’s proposed rule on the use of future credit scoring models by the government-sponsored enterprises.
A U.S. Supreme Court ruling last week involving the Fair Debt Collection Practices Act and foreclosures in certain states could prompt legislation from Congress.
The housing-finance reform outline from Senate Banking Committee Chairman Mike Crapo, R-ID, got its first airing on Capitol Hill this week with most witnesses giving it a thumbs up while cautioning the devil is in the details.
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