New Sheriff In Town?

With close to 30 percent market share and razor thin capital margins, the FHA is in greater need of tough oversight and management than perhaps ever before.  Happily, HUD Secretary Shaun S. Donovan and his FHA Commissioner, David Stevens, seem to understand this.  

In the face of fears that FHA’s rocketing share of single family financing is drawing in many of the unscrupulous brokers who plagued subprime lending in recent years, the agency has adopted a new “get tough” policy and is using its administrative authorities aggressively.

A recent article in National Mortgage News chronicles this recent activity.  The Donovan quote from a consumer group meeting is actually from Consumer Federation of America’s annual Financial Services Conference earlier in December.  You can see the whole speech on C-SPAN.  It’s good to have a new sheriff in town!