Lenders become wary about making new FHA-backed mortgages

05/26/2011 | AmericanBanker.com (free registration)

Fannie Mae and Freddie Mac are winding down on their loan-purchase requests, but the Federal Housing Administration's crackdown is taking their place. Lenders say that the FHA has started denying more claims and threatening lawsuits. Most of the issues revolve around mortgages extended during the bubble years, but the situation is making banks less eager to make new FHA-backed loans.

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