In a bid to provide certainty to lenders, and in hopes of re-engaging depository institutions with Federal Housing Administration (FHA) lending, the Department of Housing and Urban Development (HUD) announced a Memorandum of Understanding (MOU) with the Justice Department regarding guidance on False Claims Act (FCA) enforcements.
The MOU, signed by HUD Secretary Ben Carson and Attorney General William Barr, creates guidance on the “appropriate use” of FCA for violations by FHA lenders.
Read on for details of the memo and Carson’s comments on its effect on FHA lending.