FHA Penalizes Over 1,000 Lenders for Violating Regulatory Standards in 2010

I have no update to this posting yet, nor do I understand if the penalties were stiff enough to change their behavior or provided any restitution to the victims, but I just wanted to repost this in case YOU know…

Federal Housing Administration’s Mortgagee Review Board (MRB) took action against 1,000 lenders believed to perform fraudulent or predatory lending practices.

Note:  The article also mentioned the MRB suspended 905 other companies for one year for failing to comply with the MRB’s annual re-certification requirements and assessed $3,500 fines against 147 lenders which had been out of compliance but had cured that situation.

Go to the Mortgage Daily News story which addresses the details.

Other source – The Federal Register dated July 26, 2010 to see details of the specific actions taken against each lender including reprimands, probations, suspensions, withdrawals of approval, and civil money penalties.

Sorry, but nobody was executed or thrown in prison…

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