Lax underwriting alleged on FHA loans  

Federal housing officials have completed reviews of 13 of 15 FHA direct-endorsement lenders subpoenaed in January because of high claim rates on their loans, finding proper underwriting procedures were not followed on nearly half of the loans reviewed.

Lenders targeted by "Operation Watchdog" endorsed 183,278 loans valued at $31.3 billion from January 2005 to December 2009, submitting $794.3 million in Federal Housing Administration insurance claims on 6,560 loans from November 2007 through December 2009.

more...

To view this premium content sign in to your Premium Member account.

Premium Members have full access to all news archives & premium content.

Purchase Professional Membership for $199/year OR
Premium+ Membership for $149/year OR
News Membership for $69/year

Buy Now

Advertise with Inman

All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.