Department of Housing and Urban Development Secretary Ben Carson has delivered on his promise made at the 2017 Mortgage Bankers Association Conference, as the Department of Justice will now step back from Federal Housing Enforcement, leaving most of it to the FHA.
"The goal of the move, according to Carson, is to bring banks back to FHA lending," according to HousingWire.
"Many of the nation’s largest banks, including JPMorgan Chase and Bank of America moved away from FHA lending in recent years after the government began using the False Claims Act to extract massive settlements from FHA lenders, like Wells Fargo."
Carson did add that the FHA will not ignore fraudulent activities and still plans to monitor them.
"Depository institutions, which represented nearly half of FHA’s lender base in 2010, represent less than 14% today," said Carson, according to the report.
"That isn’t to imply we don’t value the many independent and non-depository FHA lenders. You have helped countless families across America realize the American Dream and we want you to continue as a welcomed FHA partner. But we know that at least part of the reason for the decade-long decline in depository participation is because of uncertainty about how federal agencies apply the False Claim Act."
To learn more about the FHA's enforcement on violations of the the False Claims Act, click on the image above.