Important tools for eliminating discrimination from the housing market are in danger of being weakened or even dismantled by the White House. Fair housing activists, to say the least, are not happy.
The Department of Housing and Urban Development has received its share of a $14.5 million settlement agreed to by Gateway Funding Diversified Mortgage Services to resolve allegations of failing to comply with FHA rules.
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.
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.]
Carson to Leave HUD After Trump’s First Term; Ginnie Annual Summit Set; Regulators Reject Request for Hearing on Appraisal Threshold; VA Announces Special Relief for Alabama.
In an effort to streamline its lending process, the FHA has scrapped the requirement of a 10-year protection plan for newly constructed single-family homes, according to guidelines released this week.
FHA lenders can now outsource verification of a borrower’s employment, income and other assets to third-party vendors. The new guidance, which came into effect on Feb. 15, applies to all FHA forward mortgages and Home Equity Conversion Mortgage loans.
RSS