|HUD No. 11-161
July 29, 2011
FHA'S MORTGAGEE REVIEW BOARD TAKES ACTION AGAINST 240 LENDERS
WASHINGTON - The Federal Housing Administration's Mortgagee Review Board (MRB) today announced hundreds of administrative actions against FHA-approved lenders who failed to meet its requirements. MRB sanctions against lenders include reprimands, probations, suspensions, withdrawals of approval, and civil money penalties. Read the full text of MRB's Federal Register Notice (www.gpo.gov/fdsys/pkg/FR-2011-07-29/pdf/2011-19293.pdf)
"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. "FHA requirements ensure homeowners are put on a path of sustainable homeownership and that ultimately helps stabilize entire neighborhoods and communities."
Since 2009, the MRB took more than 2,300 administrative actions against lenders, including a record 1,600 last year alone. Meanwhile, FHA instituted a number of new rules designed to strengthen risk management including increasing net worth requirements of FHA-approved lenders, strengthening lender approval criteria, and making lenders liable for the oversight of mortgage brokers.
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 MRB publishes these actions after all appeals are exhausted and final determinations can be announced publicly. For a full listing of the actions taken by the Board, visit HUD's website.
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