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HUD OIG Report on FHA Lender Approval Process

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HUD Inspector General report – Controls over FHA single-family lender approval process need improvement, issued September 30, 2009

  • “Finding 1: FHA’s Lender Approval Process Did Not Ensure That Only Eligible Applicants Were Approved. FHA’s lender application process was not adequate to ensure that all of its lender approval requirements were met. This condition occurred because FHA control procedures had been enhanced and automated to handle the recent large increase in the number of lenders applying for the FHA program.”
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