The Office of the Inspector General (OIG) is the taxpayers’ watchdog for large-scale fraud at the federal level. If ever there was a federal program whose funding should not be cut, it is the OIG.
Now, the special agent in charge of the OIG’s Crimination Investigation at HUD, the federal Housing and Urban Development that oversees FHA loans for low-income, first-time buyers, is sounding the alarm about fraud in the FHA loan program.
Speaking on a panel at the Government Housing and Loan Production Conference sponsored by the Mortgage Bankers Association, Special Agent Anthony Medici asserted that the higher loan limits for FHA loans are attracting more fraud. He cited the increase by 42% in the rate of 90-day delinquent FHA loans from fiscal 2007 to fiscal 2008. He also noted that past due FHA loans are now almost 14 percent.
Read the Full Article on AllBusiness.com