A crackdown on reckless mortgage lenders by the Federal Housing Administration has failed to root out several executives with criminal records whose firms continue to do business with the agency in violation of federal law, according to government documents, court records and interviews.
The get-tough campaign has also been hamstrung because, even when the FHA can ban mortgage companies for wrongdoing or an excessive default rate, the agency does not have the legal power to stop their executives from landing jobs at other lenders, or open new firms.
After the collapse of the home loan market, the FHA launched an effort aimed at reducing losses on mortgages it insures by weeding reckless lenders out of the program.
But documents and interviews reveal that more than 34,000 home loans have been issued over the past two years by a dozen FHA-approved lenders that have employed people who were convicted of felonies, banned from the securities industry or previously worked for firms barred by the agency.
More than 3,000 of those loans, about 9 percent, were seriously delinquent or already a claim on the FHA insurance fund as of June 30. That's nearly triple the rate for all loans made by FHA lenders over the past two years, about 3.4 million.
Several people with no apparent connection to the Nolan Wells case have been criminally charged with...
Vincent Pastore, a veteran actor who played mobsters and tough guys, and was best-known for playing...
The Columbia University student workers' union withdrew its demand that the university divest financially from Israel...
A shooting at an In-N-Out Burger restaurant in southern Idaho on Saturday afternoon left multiple people...
