Today's Date: March 3, 2021
CodeWizardsHQ Launches 2nd Annual Free Global Kids Coding Challenge   •   Medicom Announces 8 New VA Contract Awards That Bring 15 VA Health Care Systems to Its Decentralized Health Information Network   •   siggi’s Announces New Lower Sugar Yogurt Line and Expansion of Plant-Based Offerings   •   Philips and Disney join forces to improve the healthcare experience of children   •   Rite Aid Expands Commitment to Improving Chemical Management and Product Safety   •   Educational First Steps presents psychologist and New York Times best-selling author Dr. Wendy Mogel as Munson Lecture Series fi   •   Founders Of Straight Up Films Launch New Woman-Owned Production Company To Create Content For Social Change   •   Speed Queen Recognized by the Women's Choice Award as a Brand Loved by Women across America   •   1863 Ventures, Leading Incubator of Black and Brown Entrepreneurs, Launches 3Rs Business Development Program   •   tonies' New Sleepy Time Collection Features Soothing Sounds To Gently Lull Little Ones To Rest   •   Velodyne Lidar Announces Free Virtual Summit, Disruptive Women Powering Our Autonomous Future   •   Chloe Wine Collection Announces Two Initiatives in Celebration of Women’s History Month   •   Parents and Students Welcome First Lady Jill Biden to Connecticut and Invite Her to #GetSchooled   •   Health Insurance Providers Commit to Help Millions of Seniors in Underserved Communities Receive COVID Vaccines   •   Healthline to Host Live Town Hall: COVID-19 One Year Retrospective   •   Smart & Final Launches Blizzard & Beaches Sweepstakes and In-Store Promotion to Celebrate Frozen Food Month   •   DKT International Spotlights International Women’s Day Activations and Celebrates Female Employees Making an Impact on Glo   •   Eagle Hill Earns Top Workplace Culture Award   •   The 58th Design Automation Conference Opens Call for Nominations for the Prestigious Marie R. Pistilli Award   •   CM Counsel Management LLC forms a strategic partnership with Savia Community Counseling Services LLC, an In-home and Community H
Bookmark and Share


U.S. Department of Housing and Urban Development - Shaun Donovan, Secretary
Office of Public Affairs, Washington, DC 20410

HUD No. 09-032                                                    FOR RELEASE
Brian Sullivan                                                    Thursday
(202) 708 - 0685                                                  April 2, 2009

HUD seeks funding for technology and manpower, announces lender 'swat teams'

            WASHINGTON - U.S. Housing and Urban Development Secretary Shaun Donovan told a Senate appropriations subcommittee today that the Federal Housing Administration needs additional resources to ensure FHA can continue to meet the needs of underserved borrowers during the current mortgage crisis.  Donovan also testified that he recently reactivated a program to dispatch teams of investigators to conduct on-site reviews of lenders, especially those whose refinance portfolios are showing signs of distress and abnormally high default rates.

     Donovan emphasized that every effort is being made to reduce risk and confront fraud in FHA's single-family mortgage insurance programs.  To read the full text of Donovan's testimony, visit
HUD's website.

     "For FHA to realize its full potential to respond to the current mortgage crisis, it will require additional resources and development of new and innovative reform initiatives," said Donovan.  "The recent mortgage market meltdown has provided ample evidence that we must work to rethink each and every aspect of the nation's housing finance system."

     In addition to the Agency's normal lender monitoring procedures, FHA plans to increase unannounced on-site inspections of lenders to further reduce the risk of fraud.  In FHA's mortgagee letter, lenders are reminded the Department expects a strict adherence to FHA's underwriting standards to ensure lenders:

     * Implement and maintain a comprehensive quality control plan,
     * Review all loans with early payment defaults;
     * Do not engage in false or misrepresentative advertising;
     * Fully document the stability and amount of borrower(s) income; and,
     * Do not charge excessive and unallowable fees to the borrower.

     Donovan also appealed to Congress to appropriate additional funds next year to allow FHA to hire more staff to handle the tremendous surge in loan activity.  FHA's role has grown substantially from three percent of lending activity (by dollar volume) in 2006 to approximately 30 percent of all mortgages originated today.   But while FHA is currently handling this increased loan volume and managing the accompanying risk, Donovan also cautioned about the challenges facing the mortgage insurance fund.

     Donovan said, "Like many federal domestic agencies, FHA has suffered under the penny-wise and pound foolish priorities of the previous Administration. FHA was stagnant, limiting its ability to maintain adequate staffing levels and invest in state-of-the art technology.  Repeated budget stalemates and resulting uncertainty of future funding levels undermined the ability to implement long-term organizational improvements."  


HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at and

Back to top
| Back to home page

White House Live Stream
alsharpton Rev. Al Sharpton
9 to 11 am EST
jjackson Rev. Jesse Jackson
10 to noon CST


Sounds Make the News ®
Atlanta - WAOK-Urban
Berkley / San Francisco - KPFA-Progressive
Chicago - WVON-Urban
KJLH - Urban
Los Angeles - KJLH - Urban
WKDM-Mandarin Chinese
New York - WKDM-Mandarin Chinese
New York - WADO-Spanish
WBAI - Progressive
New York - WBAI - Progressive
Washington - WOL-Urban

Listen to United Natiosns News