HUD Official: FHA New Lender Rules Will Target Fraud, Excess Risk

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FHA News Editor - Here we post articles each week on FHA/VA Government news.

The Federal Housing Administration (FHA) has issued a final rule regarding its efforts to strengthen the Mutual Mortgage Insurance (MMI) Fund by tightening Lender Insurance requirements. Its plans to enact more stringent lender performance standards were reaffirmed earlier this month, and now the new regulations have been posted on the FHA’s website and will soon be published in the Federal Register. The new rules are intended to “provide greater clarity regarding our expectations for our LI lending partners, as well as actions we will take to prevent losses when those standards are not met,” said the agency’s acting commissioner, Carol Galante, in a letter dated January 23.

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SOURCE: Published by NAMU® Publishing Group, a division of the National Association of Mortgage Underwriters (NAMU) (http://www.mortgage-underwriters.org)