HUD’s Dr. Carson: ‘Innocent Errors’ Do Not Deserve Harsh Enforcement

Oct 23, 2017

U.S. Department of Housing & Urban Development (HUD) Secretary Dr. Ben Carson has a message for the mortgage industry: The Department does not want to be seen as a trigger-happy enforcer.

Speaking today before the Mortgage Bankers Association’s Annual Conference in Denver, Dr. Carson stated that lenders who make honest errors should not fear the level of regulatory retaliation that has been enacted against lenders for intentional fraud. He added that HUD’s Federal Housing Administration (FHA) and the Department of Justice (DOJ) are working together to clarify rules that have created agitation by lenders and may have resulted in less lending to lower-income borrowers.

“Innocent errors should not create chaos and fear and make people less likely to get involved in the first place,” Dr. Carson said.

However, he added that this should not be interpreted as a pendulum swing back to the pre-2008 environment. The retired neurosurgeon-turned-housing policy chieftain warned that HUD was “not open for business to fraudsters, those without proper controls, or those who do not take their obligations in our market seriously. They will be found out and held accountable.”

About the author

Phil Hall

Link copied

Published

Oct 23, 2017

Courts

UWM Previews Bid To Dismiss Rocket’s $100M Servicing Lawsuit

UWM argues Refi75 was permissible mass advertising

United Wholesale Mortgage is preparing to ask a New York court to dismiss Rocket Mortgage’s $100 million lawsuit over alleged violations of mortgage servicing rights agreements, arguing that Rocket’s claims conflict with the contracts and rely on unsupported allegations.In a...

Analysis and Data

Homebuyer Assistance Programs Reach Record High As Grants Expand

Down Payment Resource identified 2,746 programs nationwide, although only 77% were active and funded at the beginning of July

The number of U.S. homeownership assistance programs climbed to a record high in the second quarter as more grants and programs covering manufactured homes and multi-unit properties became available.Down Payment Resource identified 2,746 programs nationwide as of July 1, an ...

Nov

Houston, TX

More from

Regulation and Compliance

Condo Review Deadline Puts Lenders On The Clock

Fannie Mae and Freddie Mac will eliminate abbreviated project reviews for condo applications dated on or after Aug. 3

Regulation and Compliance

Jul 24, 2026

TRUE Releases AI Governance Guide Ahead Of Fannie Mae Deadline

Guide focuses on tracing mortgage data from borrower documents through AI validation, human review, and final LOS entry

Regulation and Compliance

Jul 22, 2026

AD Mortgage Warns Condo Eligibility Changes Could Restrict Conventional Financing

Wholesale lender cites internal loan data to urge regulators to monitor whether new condominium eligibility standards reduce access to conventional financing

Regulation and Compliance

Jul 20, 2026

CHLA Says Direct Payments Are Key To Small FHA Loans

The lender group says mortgages below $100,000 routinely lose money, while LO compensation rules could prevent federal incentives from reaching originators

Regulation and Compliance

Jul 17, 2026

Solidifi Clears FHA Certification For UAD 3.6 Integration

The appraisal management company says it is the first to complete certification for FHA’s modernized EAD platform, giving lender clients an early path toward implementation

Regulation and Compliance

Jul 16, 2026

Vought To Face Congress Over CFPB Overhaul, Enforcement Pullback

Vought’s testimony also comes as a new poll suggests the CFPB retains broad support across party lines

Regulation and Compliance

Jul 15, 2026

Popular