Links in “FHA”

Bank of America agreed to pay a settlement of nearly $17 billion in response to allegation of mortgage loan fraud. Although $800 million will go to the FHA fund and $200 million to Ginnie Mae, the remaining $16 billion of the settlement will be used to resolve fraud claims across the country. Of the $16 billion, $7 billion will be reserved for consumer relief, which will be distributed in a variety of ways to those hit hardest during the housing crisis. [8/22/14]

Commissioner Carol Galante announces her intention to step down at the end of the year to take a professorship in the University of California system. The move comes less than two years after being confirmed as head of the Federal Housing Administration. [8/12/14]

If you are using a project-specific trust indenture agreement, the FHA requires that you include that if bond funds remain after a multifamily insurance debt payment, those excess bond funds are to be returned to the FHA. [7/29/14]

Not surprisingly, the Federal Housing Administration is finding banks apprehensive about continuing to do business with it after several major industry players were hit with big penalties to settle allegations of faulty underwriting. The agency is instituting greater sampling and early reviews of newly originated loans. Will it be enough? [7/24/14]

JPMorgan's CEO Jamie Dimon suggested last week that regulatory pressure banks face to serve minority and low-income borrowers, combined with the stiff penalties they must pay if pools of such loans go bad, has JPM reconsidering its participation in FHA business. While it may just be a threat, the comment is seen as an effort to push regulators to address bankers' frustration. [7/21/14]

JPMorgan's CEO Jamie Dimon says the bank, the nation's second largest mortgage lender, is rethinking its participation in Federal Housing Administration mortgage programs, in light of its recent $614 million settlement. [7/16/14]

HUD has completed the required notice and comment processes for the FHA-insured multifamily rental closing documents, which has been reviewed and approved by the Office of Management and Budget (OMB). The intention behind the changes was to decrease and optimize the paperwork involved in related activities. Final versions of the closing documents, with comparisons to previous versions, are available for review. [7/11/14]

Department settles with group stemming from allegations they advertised a condominium complex as a place where children were not allowed to live, a violation of the Fair Housing Act. Worth noting that the action was the result of a referral from another group that receives funding from HUD to serve as watchdogs for discrimination. [6/30/14]

Mountain America Credit Union has agreed to pay $25,000 to settle a claim brought by HUD for allegations that the credit union had violated the Fair Housing Act. The claim began with a complaint by a married couple who claimed that their mortgage application had been denied because the wife was out on maternity leave. The credit union stated that its investigation showed that the credit union had never had engaged in any discriminatory practice, but both the credit union and HUD decided it was best to enter into a conciliation agreement. [6/27/14]

HUD announced today a Conciliation Agreement between the Connecticut Fair Housing Center (CFHC) and respondents Lil-1 Associates, AllPoints Realty and realtor Lillian Polak.  The real estate companies will pay more than $24,000 to settle allegations that they published discriminatory listings and advertisements for condominiums specifying that children were not permitted; which is in direct violation with the Fair Housing Act. [6/27/14]