New system to spot FHA loan irregularities
- By Mary Mosquera
- Dec 19, 2003
The Housing and Urban Development Department on Jan. 20 will launch a records system to monitor default and claim rates on Federal Housing Administration-insured loans.
The Single Family Neighborhood Watch Early Warning System will access records of individuals with mortgages insured under FHA's single-family mortgage programs, HUD chief technology officer Gloria Parker said.
The Web tool also will access records of individuals involved in loan origination. Records include borrower names, property addresses, Social Security numbers or other identifiers.
The tool will give early warning about lenders and geographic areas with high defaults and claims on insured loans. The loan information is password-protected and accessible only to HUD staff who need to know and lenders who originated, hold or service the insured loans.
HUD monitors FHA-approved lenders to ensure that they follow its guidelines and do not have excessive default and claim rates. The neighborhood watch tool will target some approved lenders for on-site reviews.
Mary Mosquera is a reporter for Federal Computer Week.