The Department of Housing and Urban Development last week unveiled its latest project to tighten up its FHA single-family mortgage insurance program, potentially further dampening lender interest. Under a proposed rule published in the April 1 Federal Register, HUD’s Credit Watch Termination Initiative would be extended to lenders that underwrite FHA mortgages, as well as lenders that originate them. Credit Watch identifies those FHA lenders with default and claim rates that exceed the average