FHA is Cleaning Up….
by Tom on June 11, 2009
in Market Musings, banks
What are they cleaning up at this point? They are cleaning up the “disreputable” lenders and that’s a good thing.
After they work through the “bad lenders,” I expect we’ll also see a tightening of underwriting guidelines. The performance of their portfolio is going to require that they have to clean things up.
I expect that 6 months from now it’s going to be harder to get an FHA loan than it is now.
Tom Vanderwell
Three Lenders Shut out of FHA : HousingWire || financial news for the mortgage market
The Federal Housing Administration (FHA) program that ensures lenders against default-related losses on Wednesday saw another three approved lenders get the boot.The US Department of Housing and Urban Development suspended three FHA lenders suspected of “serious violations” of HUD’s regulations, marking the first action to clean up the ranks of FHA lenders since taking the ax to more than 100 approvals in late May.
