Buckley Webcast: HUD enforcement — Why decreased reliance on FCA may not mean reduced risk to mortgagees
In an effort to make bank and nonbank lenders and servicers more comfortable with participating in FHA programs, current HUD leadership has denounced the overuse of the False Claims Act in enforcement of FHA program requirements. However, decreased reliance on the False Claims Act is unlikely to translate into reduced enforcement of HUD requirements. This webcast discussed recent trends in HUD enforcement and predictions for what’s to come. Topics included the enforcement mechanisms available to HUD, reasons for the apparent uptick in HUD enforcement efforts, recent actions against lenders and servicers, and what lenders and servicers can do to reduce their risk.