HUD Announces New Certification Protections for Lenders; FCA Liability Concerns Linger in Wake of DOJ Statement
March 17, 2016
The Department of Housing and Urban Development this week unveiled final loan-level and lender-level certifications aimed at easing lender anxiety over potential enforcement actions due to minor errors, but a statement from the Justice Department could put a damper on the new FHA policy. The updated version of FHA’s loan-level certification clarifies that lenders will be held accountable for mistakes that would have prompted a lender to change its decision to approve a loan, not for minor errors. In addition, HUD opened a 30-day comment period for lender-level certification to address stakeholders’ concerns that proposed changes to loan-level certification could weaken the department’s enforcement authority. Lender liability under the federal False Claims Act has been...
The creation of a U.S. sovereign wealth fund could grease the skids for an end to the conservatorships of Fannie Mae and Freddie Mac.
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