The FHA's loan defect taxonomy "does nothing to reduce the confusion or increase the confidence that lenders can originate and insure loans through FHA without severe and unknown risk," said Quicken Loans CEO Bill Emerson.
The Federal Housing Administration's new loan defect "taxonomy" may give lenders better clarity on the quality assurance reviews of FHA loans, but it's not a shield from possible enforcement action by the Department of Justice and other regulators.
Lynn Effinger is a veteran of more than three decades in the housing and mortgage servicing industries.
When the next wave of REO activity hits, it will be heavily influenced by some of the leftover problem loans from the last downturn, as well as new defaults from more recent originations.
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