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The Federal Housing Authority (FHA) is investigating fifteen mortgage lenders whose loans it backs, due to their sky-high default rates.<\/p>\n
They’re afraid that the bad lending practices which led to the crisis are still going strong. We’re afraid that the FHA’s housing market support is encouraging it.<\/p>\n
WaPo:<\/a> Each firm raised suspicion because its default rate was at least twice the average of peers in their area. Together, they originated about 100,000 FHA-backed loans in the two-year period ended Nov. 30 and the FHA paid claims on roughly 12,000 of them, according to a federal database.<\/p>\n The agency does not make loans; it insures the lenders against default. The largest contributor to the volume of bad loans was the Memphis-based bank First Tennessee, which sold its mortgage division to MetLife in 2008 and has since focused its mortgage lending in Tennessee.<\/p>\n The bank said in a statement Tuesday that just a few bad loans in the smaller pool of loans originated since then could have hurt its performance. The only Washington area lender served with a subpoena was Dell Franklin Financial of Millersville in Anne Arundel County. Richard Reese, the company’s president, said he is confident that fraud is not at the root of the troubled loans at his firm.<\/p>\n “Many loans we do are in underserved areas that were hit by the poor economy,” Reese said. “We have done nothing wrong.”<\/p>\n Read the full article here ><\/a><\/p>\n Join the conversation about this story »<\/a><\/p>\n See Also:<\/b><\/p>\n The Federal Housing Authority (FHA) is investigating fifteen mortgage lenders whose loans it backs, due to their sky-high default rates. They’re afraid that the bad lending practices which led to the crisis are still going strong. We’re afraid that the FHA’s housing market support is encouraging it. WaPo: Each firm raised suspicion because its default […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-174587","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/174587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=174587"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/174587\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=174587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=174587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=174587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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