The HUD Inspector General and Department of Justice officials are in settlement talks with some the largest Federal Housing Administration lenders and it may result in significant recoveries for the FHA mortgage insurance fund.
Department of Housing and Urban Development
“Given the sheer volume of loans involved and the high error rates identified in the underwriting, settlement and favorable court actions may result in significant recoveries by the government from each of the 10 lenders,” Montoya testified.
He also informed the House Financial Services subcommittee that the joint HUD-DOJ team launched a new round of audits of large FHA lenders a few months ago.
“These reviews are in the early stages, with even more U.S. attorneys’ offices joining in the effort than in the first large lender initiative,” the HUD IG said.
