The department has recommended a scorecard to ensure FHA borrowers re-ceive financing that is appropriate and sustainable for long-term homeowner-ship. Meanwhile, the Treasury has outlined the new role Fannie Mae and Freddie Mac would play in a revamped housing-finance system.
Despite a legal setback, the department said it intends to proceed with a for-mal rulemaking on downpayment assistance provided by government entities. This time, though, with proper notice to stakeholders.
The Department of Housing and Urban Development has received its share of a $14.5 million settlement agreed to by Gateway Funding Diversified Mortgage Services to resolve allegations of failing to comply with FHA rules.
As it curtails the use of the False Claims Act to stop fraud in FHA lending, the Department of Housing and Urban Development is turning to technology to bring enforcement action and hold lenders accountable for harmful business practices, according to attorneys.