On October 28, 2019, the U.S. Department of Housing and Urban Development announced: (1) proposed revisions to lenders’ loan-level lender certifications in Federal Housing Administration (FHA)-insured mortgage transactions; (2) issuance of a revised Defect Taxonomy; (3) execution of a Memorandum of Understanding (MOU) with the U.S. Department of Justice regarding False Claims Act (FCA) actions against lenders for alleged violations of FHA requirements; and (4) approval of a new FHA annual lender certification.
With these continuing efforts to clarify FHA penalties and remedies, and to align them with the severity of the deficiencies, HUD is beckoning back to FHA those depository institutions and other lenders that retreated in recent years.
Read more in Mayer Brown’s Legal Update.