Once again we find the Department of Justice out to protect the “…housing market the FHA fund…,” according to Benjamin Mizer, the principal deputy assistant Attorney General. This time, they’re after Guild Mortgage, a San Diego lender with over five decades in the mortgage lending and servicing business. Another big target. However, Guild is not a large bank but an…
Last month, the U.S. Dept. of Housing and Urban Development (HUD) announced new tools in resolving disputes of Manufactured Housing units involving consumers, manufacturers, retailers, installers, and others. To help facilitate the dispute resolution process (which could involve very technical construction standards and safety issues), HUD’s Office of Manufactured Housing Programs has created a new website to help interested parties…
With all the talk recently about quality and compliance, we need talk about if a lender has an adequate written Quality Control Policy. Do you? Whether you are outsourcing QC or performing it internally, a lender must have a written plan. This policy must clearly outline the scope of what a lender wants, and needs, to ensure their loans are…
It seems to me like only yesterday when a brand new method of determining a borrower’s creditworthiness was introduced. It was dubbed a “credit score”. It would revolutionize lending. No longer would underwriters need to sweat and labor reviewing the details of an applicant’s credit history and profile. Like Prego, it’s in there. All the necessary ingredients to determine a…
Another day, another DOJ settlement under a False Claims Action brought against a major Bank originating FHA loans. This time, it’s M&T Bank Corp to the tune of $64 million. Not a happy tune. Here we go again. DOJ alleged that M&T did not originate their FHA loans in compliance will all FHA rules and requirements. Rather than fight these…
As I’m sure if you’ve heard by now, many banks are shying away from FHA lending. As a direct result, independent, non-bank, mortgage lenders are seeing a windfall in these loans. The old “bad news; good news” scenario. Is this good news for independents? Banks fear the potential repercussions resulting from the certifications required by FHA when doing these FHA-insured…
