The Department of Housing and Urban Development has softened its approach in adopting a rule that holds Federal Housing Administration lenders accountable for inaccurate or fraudulent appraisals.Under the final rule, lenders could be subject to sanctions if they knew or should have known that an appraisal was inaccurate or deficient. This test appears to be acceptable to lender groups. At first, lenders thought HUD wanted to create a "no-fault" system where lenders are automatically liable if a loan goes bad and the appraisal is off the mark. Lenders maintained that HUD does not have the statutory or regulatory authority to hold lenders responsible for the work of appraisers and such a no-fault system would force lenders to exit the FHA system. In the final rule, HUD says it never intended to impose such a "strict" liability requirement on lenders. "HUD recognizes that lenders shouldn't be held responsible for the appraisals of independent contractors unless they are culpable," said Phillip Schulman, a partner in the Washington law firm of Kirkpatrick & Lockhart.
-
In an interview, Candor Technology's Sara Knochel recounts how she applies her childhood interest in languages and numbers to crucial home lending issues.
5h ago -
Harmonizing standards for liquidity coverage ratios and discount window pledges could prevent the type of strains that led to last year's bank failures, according to a new paper whose authors include former Federal Reserve Govs. Dan Tarullo and Jeremy Stein.
March 27 -
The report seeks to help banks "disrupt rapidly evolving AI-driven fraud," according to Treasury's Nellie Liang. The report found banks have difficulties accounting for AI risks.
March 27 -
The lender accused its former leader of compromising its Fannie Mae seller/servicer number to prevent it from delivering loans.
March 27 -
Equity is entitled to a little over $70,000 worth of damages.
March 27 -
Audited financials, proof of fidelity bonds and errors and omissions insurance must be provided on Ginnie Mae Central after May 13.
March 27