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HUD Archives: News Releases
CUOMO ANNOUNCES NEW LENDER SCREENING PROCESS TO IMPROVE FHA
WASHINGTON - Housing and Urban Development Secretary Andrew Cuomo today announced that the Mortgage Asset Research Institute will use a computer database to screen companies applying for designation as FHA-approved lenders, in a move to keep lenders with bad records out of the FHA mortgage insurance program.
The screening will check a lender's background to determine if the lender has been sanctioned by state or federal agencies for improper actions. If sanctions turn up and if the lender is unable to offer a satisfactory explanation for past conduct, the lender will be denied the opportunity to participate in Federal Housing Administration programs.
"We are setting the highest standards of integrity, efficiency and performance for FHA, building on its proud history to create a future of even greater achievement," Cuomo said.
Over its six-decade history, FHA has made homeownership available to more than 24 million families.
Lending institutions, their owners and principal officers who apply for FHA designation have long been checked against lists of businesses and individuals barred from participation in HUD programs and against a General Services Administration list of parties excluded from participation in all federal programs.
However, until now there was no checking for similar information with respect to state and local government actions.
Content Archived: January 20, 2009