FHA's Mortgagee Review Board fines hundreds of lenders for violations
The Federal Housing Administration's Mortgagee Review Board (MRB) has published a notice in the Federal Register to announce dozens of administrative actions against FHA-approved lenders who failed to meet its requirements. This year alone, the MRB took nearly 1,500 administrative sanctions against lenders, including reprimands, probations, suspensions, withdrawals of approval, and civil money penalties. "Lenders should know by now that FHA will not tolerate fraudulent or predatory lending practices," said FHA Commissioner David H. Stevens. "Any FHA-approved lender that does business with us must follow our standards. If we determine that our partners are not playing by the rules, we will take action—it's that simple." 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. For a full listing of the actions taken by the Mortgagee Review Board, click here. For more information, visit www.hud.gov.