Jeffrey Naimon Quoted in Law360 Article, "New Guidelines for Bad FHA Loans Won't Boost Lending"Jeffrey P. Naimon
Jeffrey Naimon was quoted in Evan Weinberger's Law360 article, "New Guidelines for Bad FHA Loans Won't Boost Lending," on June 19, 2015.
The federal government on Thursday provided lenders with a streamlined framework for how it determines whether the Federal Housing Administration must be paid for a loan gone bad, but experts say the new framework will have limited effect because it failed to alleviate the threat of a Justice Department lawsuit.
All of this was done in a bid to increase transparency and boost a sagging home loan sector. However, HUD was careful to state that its new default taxonomy does not have any bearing on potential civil or administrative liability a lender may face for making bad loans.
And because of that, lenders will still be skittish about issuing new mortgages, said Jeffrey Naimon, a partner with Buckley Sandler LLP.
“What this expressly doesn’t address is what is likely the single most important thing in housing policy right now, which is how the Department of Justice is going to handle these issues,” he said.
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