MBA Statement on the DOJ and HUD Memorandum of Understanding on False Claims Act Guidance
|Rob Van Raaphorst|
AUSTIN, TEXAS (October 28, 2019) - Statement from Robert D. Broeksmit, CMB, President and CEO of the Mortgage Bankers Association (MBA), on the U.S. Department of Justice (DOJ) and U.S. Department of Housing and Urban Development's (HUD) memorandum of understanding (MOU) on False Claims Act guidance, which was announced as part of HUD Secretary Ben Carson's remarks on the Department's housing finance reform plan, delivered today at MBA's 2019 Annual Convention and Expo:
"MBA applauds the efforts between DOJ and HUD to set guidance on the appropriate use of the False Claims Act. We commend Attorney General William Barr and Secretary Ben Carson for their leadership and commitment to create an environment where lenders of all sizes - from depository institutions to independent mortgage banks (IMBs) - can operate with more certainty and less risk. Today is a significant step toward providing clarity for those currently participating in the FHA program, as well as encouraging more lenders to offer FHA-insured loans.
In addition to the MOU, MBA is also pleased to learn that FHA is revising the loan review process and simplifying the certifications that lenders make in connection with the FHA program. These combined actions will go a long way toward ensuring that low-to-moderate income households and first-time buyers have access to affordable mortgage credit in order to achieve their dream of homeownership."