FHA Uses Special Teams to Check on Lenders

FHA Uses Special Teams to Check on Lenders
The FHA's Special Work Assessment Teams have been reactivated to conduct unannounced, onsite reviews of problem lenders, according to HUD Secretary Shaun Donovan and Federal Housing Commissioner Brian Montgomery.

There currently are 36,000 FHA-approved brokers, up from 16,000 in mid-2007, and 3,300 FHA-approved lenders, up 525 percent over the last three years.

In response to rising FHA delinquency rates, HUD's proposed 2010 budget includes funds to hire more staff to handle lender approvals and monitoring.

Source: American Banker, Paul Muolo and Brian Collins (04/06/09)