David Stevens, CEO of the Mortgage Bankers Association, sat down with HousingWire to detail how lenders are facing a "huge financial risk" with FHA loans under the False Claims Act.
Taking a break from the hustle and bustle of the conference, Stevens met up to record a brief clip that expands on his comments at the conference on the Department of Housing and Urban Development’s recent revision to the Federal Housing Administration's loan level and lender certifications.
Stevens expressed concerns over the proposed changes to the FHA’s rules, a concern that is becoming a quick reality.
“Lenders wonder how safe they are originating mortgages in the FHA program,” Stevens said in his opening remarks at the conference, which received widespread applause.
“We are lending defensively, practically out of fear,” Stevens said.
In the clip below, Stevens says, “This is a whole new world that we’re in today that we’ve never had to deal with before.”
He explains how the government is "using a bazooka" to regulate what might even be minor defects in loan filings.
Watch the video below to see what the government needs to do.