US Broadens Probe Of Federally Insured Mortgage Lenders

Law360, New York (June 7, 2012, 6:57 PM EDT) -- U.S. officials on Thursday were reportedly initiating further investigations of lenders that issued federally insured mortgage loans under the Federal Housing Administration, having sent out subpoenas last month seeking information from several large banks.

The Inspector General of the U.S. Department of Housing and Urban Development, which oversees the FHA, issued subpoenas to Metropolitan Life Insurance Co., SunTrust Banks Inc., U.S. Bancorp and other institutions in a move that could force more banks to pick up rising losses at the FHA, according to a Thursday news...
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