FHA Finalizes Regs To Limit Mortgage Risks

Law360, New York (January 20, 2012, 6:09 PM EST) -- The Federal Housing Administration has finalized new regulations that will require banks and other lenders to indemnify its government parent for insurance claims on mortgages involving fraud or misrepresentations, the agency announced Friday.

Also under the regulations, lenders authorized to insure mortgages on behalf of the U.S. Department of Housing and Urban Development, known as lender insurance mortgagees, will have to meet stricter performance standards to secure and maintain their approval status, according to the FHA, which is under HUD's umbrella.

The FHA, which provides mortgage...
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