Increasing Demand on FHA Program Causing Strain on GNMA’s Resources, Warns HUD IG
March 18, 2016
Increases in demand on the FHA single-family program are having collateral implications for the integrity of Ginnie Mae’s MBS programs, including the potential for more fraud, warned the Department of Housing and Urban Development inspector general. Testifying during a recent Senate budget hearing, HUD Inspector General David Montoya said Ginnie issuer defaults historically have been infrequent, involving small to moderate-size issuers. “However, major unanticipated issuer defaults beginning in 2009 have led...