Melissa Klimliewicz Quoted in Inside Mortgage Finance Article, "FHA Experts Doubt Whether Assessment of Underwriting Defects Can Be Simplified, Clear Guidance Remains to Be Seen"Melissa Klimkiewicz
Melissa Klimkiewicz was quoted in the Inside Mortgage Finance article "FHA Experts Doubt Whether Assessment of Underwriting Defects Can Be Simplified, Clear Guidance Remains to Be Seen" on October 2, 2014.
The proposal has tolerance thresholds to differentiate small and large errors, and lenders will only be held accountable for fraud if it was determined that they knew or should have knowen of the fraud.
Lenders declined to comment on the proposal but compliance experts found it to be reasonable. "It has more specifics and provides more clarity than the FHA's current quality-assurance standards, although it may have to flesh out the materiality (serverity) standard, which remains unclear," said Melissa Klimliewicz, an attorney with the Washington law firm Buckley Sandler. "It remains to be seen whether this materiality provision is going to come out right. Nonetheless, the taxonomy seems to be a step forward in clarifyinf the ground rules, which has been needed for a long time."