FHA Offers Olive Branch to Hesitant Lenders
At issue are loans backed by the Federal Housing Administration, a government agency that insures lenders against default when they extend mortgages to qualified buyers with credit scores of as low as 580 and down payments as low as 3.5%. David Stevens, president of the trade group Mortgage Bankers Association, said that the new certification leaves too much discretion for the Justice Department to pursue claims against lenders for minor mistakes.
