Urban Institute to FHA: Want more lenders? Clarify False Claims Act enforcement

Many lenders have pulled away from FHA lending in recent years – something the agency has recently taken steps to address by clarifying underwriting rules. But according to a recent blog post from the Urban Institute, the FHA has not gone far enough to quell lender fears about getting back into the business of FHA lending. The problem? Not enough clarity regarding what qualifies as a violation of the False Claims Act and what the penalties might be.