The Federal Housing Administration’s Mortgagee Review Board announced dozens of administrative actions against FHA-approved lenders on July 26 for failing to meet its requirements. The recent sanctions bring to nearly 1,500 the number of administrative actions taken against lenders this year.
"Lenders should know by now that FHA will not tolerate fraudulent or predatory lending practices," FHA Commissioner David Stevens said in a news release. "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."
This year’s actions against lenders have included reprimands, probations, suspensions, withdrawals of approval and civil money penalties. The Board’s recent actions were part of an effort to further protect homeowners from abusive or unfair lending practices, Credit.com reported.
FHA's Mortgagee Review Board sanctions FHA-approved lenders for violations of the agency's program requirements. For serious violations, the Board can withdraw a lender's FHA approval so that the lender cannot participate in FHA programs. In less serious cases, the Board enters into settlement agreements with lenders to bring them into compliance. The Board can also impose civil money penalties, probation, suspension, and issue letters of reprimand, the FHA’s release said.
The FHA has been instrumental in a number of programs aimed at preventing foreclosure, including the Hardest-Hit program, recently launched to provide more than $1.5 billion to states most heavily affected by the housing crisis. Nevada, Michigan, California, Florida and Arizona are among the states that have received funding to help create programs for homeowners defaulting on their mortgage loans, Credit.com reported.
For a full listing of the actions taken by the Board, see the Federal Register notice at http://frwebgate1.access.gpo.gov/cgi-bin/PDFgate.cgi?WAISdocID=Rsc0ui/5/2/0&WAISaction=retrieve .