Along with rising claims filed on mortgages insured by the Federal Housing Administration (FHA), the rate of denial on these claims might soon increase, according to commentary today by independent rating agency DBRS.
The FHA insures approved mortgage lenders against default-related losses on qualifying loans. If the US Department of Housing and Urban Development (HUD) finds that a defaulted mortgage violated FHA requirements at the time of origination, it can deny payment of claims to the lender.
As the volume of FHA claims filed increases, "HUD may increase their scrutiny of claims resulting in higher denial rates than what has been observed in the past," DBRS said in e-mailed commentary.
Monday, July 12, 2010
HUD May Deny More Filed FHA Claims
The Housing Wire reports:
