Feature Story

April 3, 2009

DONOVAN ANNOUNCES PLANS TO REDUCE FRAUD AND RISK IN FHA

From HUD Press Releases:

U.S. Housing and Urban Development Secretary Shaun Donovan told a Senate appropriations subcommittee today that the Federal Housing Administration needs additional resources to ensure FHA can continue to meet the needs of underserved borrowers during the current mortgage crisis. Donovan also testified that he recently reactivated a program to dispatch teams of investigators to conduct on-site reviews of lenders, especially those whose refinance portfolios are showing signs of distress and abnormally high default rates.

Donovan emphasized that every effort is being made to reduce risk and confront fraud in FHA's single-family mortgage insurance programs. To read the full text of Donovan's testimony, visit HUD's website.

"For FHA to realize its full potential to respond to the current mortgage crisis, it will require additional resources and development of new and innovative reform initiatives," said Donovan. "The recent mortgage market meltdown has provided ample evidence that we must work to rethink each and every aspect of the nation's housing finance system."

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