HUD Proposal to Strengthen Lender Indemnification

On October 8, HUD proposed regulations to strengthen its authority to force lenders to indemnify or reimburse the FHA for insurance claims paid on mortgages that do not meet the agency’s guidelines.  HUD seeks to force indemnification for “serious and material” violations of FHA origination requirements by lenders with special authority to insure mortgage loans on FHA’s behalf. HUD Release.