Jul
28
FHA-approved lenders may face penalties for noncompliance with the Mortgage Review Board
To date, 1,500 actions have been taken against such lenders including reprimands, probations, suspensions, withdrawal of approval and civil penalties, the FHA said in a statement.
“Lenders should know by now that FHA will not tolerate fraudulent or predatory lending practices,” said FHA Commissioner David Stevens. “Any FHA-approved lender that does business with us must follow our standards. If we determine that our partners are not playing by the rules, we will take action – it’s that simple.”
The FHA is geared toward providing affordable housing nationwide to consumers and has been instrumental in a number of programs aimed at preventing foreclosure. For example, the Hardest-Hit program was recently launched to provide more than $1.5 billion to states most heavily affected by the housing crisis. States such as Nevada, Michigan, California, Florida and Arizona all received funding that will help create programs for homeowners defaulting on their mortgage loans.
The federal government has also put pressure on lenders to negotiate with homeowners and provide mortgage modification loans to qualified applicants. Fannie Mae has even established its own modification program to provide assistance to those who do not qualify for the Home Affordable Modification Program. The recent criticism over the effectiveness of these federal initiatives may be prompting lawmakers to increase the pressure on lenders to provide more assistance.
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