The HUD IG found the Federal Housing Administration failed to bill lenders for 486 loans with enforceable indemnification agreements that created losses for the FHA.
FHA Commissioner Carol Galante is slated to depart the agency in a few weeks, leaving in her wake a healthier Mutual Mortgage Insurance Fund, but her withdrawal comes amid gripes from some lenders that agency premiums are too high, hurting the first-time homebuyer market. Several industry officials give Galante high marks for not caving to industry pressure on reducing FHA premiums, and for trying to build bridges to originators at a time when the Inspector General of the Department of Housing and Urban Development and Justice Department continue to target lenders for their “legacy” production. One consultant who represents FHA lenders said...
As Fannie Mae and Freddie Mac buyback demands have tapered off, lenders continue to face aggressive government efforts to indemnify the FHA for losses, but they do have options available to them that can work in their favor. During a webinar sponsored last week by Inside Mortgage Finance, Amanda Raines, a partner with the BuckleySandler law firm in Washington, DC, emphasized that FHA indemnification demands have continued this year, with an aggressive use of the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act. That has led...
JPMorgan Chase and Wells Fargo have both paid major settlements regarding FHA lending, and both have curtailed their participation in the program, according to a new analysis of Ginnie Mae data by Inside FHA Lending.
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