Federal Housing Administration

The Federal Housing Administration (FHA) is a United States government agency created as part of the National Housing Act of 1934. It insured loans made by banks and other private lenders for home building. The goals of this organization are to improve housing standards and conditions, provide an adequate home financing system through insurance of mortgage loans, and to stabilize the mortgage market. The Commissioner of the FHA is Carol Galante.It is different from the Federal Housing Finance Agency (FHFA), which supervises government-sponsored enterprises.
Posts about Federal Housing Administration
  • Whistleblower Suit Against Quicken Loans Proceeds

    … appraisers and underwriters to fudge numbers simply to close loans. They say he has defrauded taxpayers of millions of dollars. In April of 2015, the U.S. Department of Justice sued Quicken Loans under the False Claims Act, a Civil War anti-fraud statute. The government wants Quicken to pay tens of millions in fines and penalties. According…

    Due Diligence- 19 readers -
  • Reverse Mortgages – New Class Action Opportunity

    … are guaranteed by the Federal Housing Administration (FHA). Others like Fannie Mae also have similar guaranty programs. Because these products have federal backing, issuers like AAG, RMS and Aegean must certify their loans are I compliance with all HUD and FHA guidelines. Unless the housing market really crashes, taxpayers probably won’t have…

    Due Diligence- 12 readers -
  • Whistleblower News Review

    … Claims Act “qui tam” whistleblower lawsuit. Over five years later, and after a trial that lasted five weeks, a jury found both the corporation and its CEO, Jim Hodge, guilty of knowingly representing to Housing and Urban Development (HUD) that certain loans were properly prepared and eligible for Federal Housing Administration (FHA) insurance, when…

    Due Diligence- 19 readers -
  • Anatomy of a Fraud – U.S. v Allied Home Mortgage Goes to Trial

    … Allied Home Mortgage was once the largest privately held FHA lender in the United States. It wrote more mortgages than many big banks. That all came to a crushing halt in November 2011 when the U.S. Department of Justice intervened in a False Claims Act claim filed by a former branch manager turned whistleblower. At the same time, HUD took its…

    Due Diligence- 42 readers -
  • BB&T Pays $83 Million Settles Mortgage False Claims Act Beef

    … that were insured by the Federal Housing Administration (FHA). The government allows mortgage companies and banks to issue these insured loans but only if the lenders agree to strict quality control guidelines. According to the Justice Department, between January 2006 and September 2014, BB&T certified loans as eligible for government insurance…

    Due Diligence- 17 readers -
  • Mortgage Company Quota System Leads to $70 mm Settlement

    … government. According to court records, Franklin American was a “direct endorsement” lender allowed to participate in the FHA’s insurance program. Most residential mortgages today are quickly sold after the closing and packaged into Residential Mortgage Backed Securities (“RMBS”). These securities are then purchased by institutional investors…

    Due Diligence- 37 readers -
  • Mortgage Bankers Association Misses the Mark

    … guarantee most residential loans. We hoped the Mortgage Bankers Association angry and unproductive rhetoric might ease up now that Cosgrove is done. It didn’t. At the recent annual meeting, incoming chairman Bill Emerson said the Justice Department’s enforcement actions were “irresponsible.” He also described the current regulatory environment…

    Due Diligence- 18 readers -
  • Buying a Home After Bankruptcy

    … You can buy a home after bankruptcy! In tough economic times, many clients worry about the impact of filing bankruptcy on their ability to purchase a home in the future, but subject to several guidelines, a debtor can obtain a mortgage and buy a new home after bankruptcy. Federal Housing Administration Guidelines The Federal Housing…

    Kathryn Davis/ Bond and Botes- 34 readers -