Mortgage lenders are balking at a quality assurance program proposed by the Federal Housing Administration—and not only because they would have to pay for it.

The increased scrutiny, mortgage bankers complain, would end recent attempts to provide home loans to borrowers with poor credit, something the FHA has been trying to spur for years. Those with FICO scores below 640 would be particularly hard hit, industry executives say.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry