Big Four accounting firm Deloitte has paid $149.5 million to the federal government to settle allegations of misconduct in connection with its role as the independent outside auditor of defunct FHA lender Taylor, Bean & Whitaker. The settlement amount includes $115 million in restitution paid to the Department of Housing and Urban Development on Aug. 13, 2018, according to the HUD inspector general. The rest of the payment went to the Department of Justice, which brought the charges on behalf of the government. Deloitte admitted neither to any liability nor to wrongdoing. TBW was an FHA direct endorsement lender and a Ginnie Mae-approved mortgage-backed securities issuer and servicer. It originated, underwrote, acquired and sold mortgages to Freddie Mac and other investors, which used the loans to support MBS issuance or held them as investments. In its heyday, TBW was one of the ...
The USDA’s Rural Housing Service is proposing to amend regulations implementing its guaranteed single-family home loan program to allow the use of “income banding” in determining the very low- and low-income limits in the guaranteed loan program. The planned rule change is part of a larger package of proposed changes to RHS’s single-family direct and guaranteed loan and grant programs. The proposed revisions were published in the Aug. 31 Federal Register. Among other things, RHS has proposed to revise the definition of low-income to allow for the two-tier income limit structure or “income banding” within the Section 502 single-family guaranteed home loan program. The program provides USDA guarantees to lenders that make mortgage loans to low- and moderate-income borrowers in rural areas who could not qualify for a conventional home loan with private mortgage insurance. It already uses ...
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