Articles Tagged With: Single Family Handbook 4000.1

September 29, 2011

FHA Loans Charges Wisconsin Landlord With Violation of Fair Housing Act

The FHA official site reports charges against a La Crosse, Wisconsin landlord for violating the Fair Housing act, “for refusing to rent an apartment to an African American couple because of their race.” FHA press release 11-228 says, “HUD brings the charge on behalf of the couple, alleging that Geneva Terrace, Inc. and Victoria Gerrard, the owner of Geneva Terrace Apartments, and property manager Nicolai Quinn refused to show an apartment to the complainants. Additionally, they falsely represented to the couple and other black applicants that no units were available, while informing white applicants of available units and encouraging them to apply. The Fair Housing Act prohibits housing discrimination based on race.” What does this have to do with FHA home loans? Refusing to rent to a qualified tenant based | more...

September 19, 2011

FHA Loans: What Is An Excessive FHA Loan Amount?

By Joe Wallace

The FHA anticipates a wide variety of scenarios a loan applicant might face during the process of applying for an FHA mortgage loan; the agency tries to anticipate many of these situations by issuing guidance for borrowers and lenders alike to prevent gray areas wherever possible. Sometimes these gray areas can’t be helped (usually based on individual circumstances) and the borrower and/or lender must contact the FHA for additional instructions. Other times the guidance issued is sufficient for the lender to decide on the right course of action and move forward on the FHA loan without further delays. One situation the FHA anticipates is known as an “excessive loan” or “excessive loan amount. According to the FHA official site, “An excessive loan amount occurs when the lender closes a loan | more...

August 1, 2011

FHA Takes Action Against Hundreds of Lenders

By Joe Wallace

Elsewhere in this blog, we’ve written about the emphasis FHA/HUD places on consumer protection, the importance of the Fair Housing Act, and the FHA’s approach when it comes to protecting the customer. While it’s true that sometimes the customer is the first line of defense against discriminatory and otherwise illegal practices, the FHA doesn’t simply wait for consumers to lodge complaints. A good example of this is the August 1, 2011 press release issued by the FHA about its actions against 240 FHA-approved lenders. The FHA has something called the Mortgagee Review Board which scrutinizes FHA lenders; the most recent outcome of that scrutiny includes “hundreds of administrative actions against FHA-approved lenders who failed to meet its requirements” according to the press release. The Mortgagee Review Board, or MRB for | more...