Broken piggy bank photo by Brett Jordan.
240 lenders under fire
The Federal Housing Administration’s (FHA) Mortgagee Review Board (MRB) has announced that it will punish 240 FHA-approved lenders for violations and failing to meet FHA requirements.
The MRB has has sanctioned over 2,000 lenders in the past two years alone, with sanctions for the current 240 under fire including suspensions, probations, and even civil fines and penalties.
Allegations range from FHA violations to charging borrowers duplicate and/or excessive fees, to failure to maintain and implement quality control.
Ultimately, the MRB is redacting FHA approval of the worst offenders, banning them from any current or future FHA programs. Lenders have the opportunity to appeal any current punishments from the FHA.
“It’s never been more important that lenders doing business with FHA apply our standards to each and every loan they originate and underwrite,” said Acting FHA Commissioner Carol Galante in a statement. “FHA requirements ensure homeowners are put on a path of sustainable homeownership and that ultimately helps stabilize entire neighborhoods and communities.”
Click here to see the full list of 240 lenders, their violations, and the FHA punishments received.
