Industry News

HUD to increase scrutiny of mortgage lending practices

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The U.S. Department of Housing and Urban Development, aiming to strengthen fair lending practices, said on Wednesday it is creating a new Fair Lending Division that will review mortgage lending practices throughout the nation. HUD in an announcement said it has hired a senior-level economist and has advertised to hire five fair lending specialists to enhance its capacity to investigate allegations of mortgage lending discrimination. The new Fair Lending Division will investigate discrimination complaints against lenders who have allegedly violated the Fair Housing Act by refusing to make mortgage loans, refusing to provide the same information regarding loans, or imposing different terms or conditions for granting a loan, such as factors based on the race or national origin of the borrower. The division will also conduct investigations where lending patterns or other information suggests discrimination by a lender, but no individual has come forward to file a complaint. In addition, th...