FHA Seeks Wider Authority to Push Bad Mortgages Back to Lenders

Congress should give the Federal Housing Administration more power to adjust fees and recoup losses on bad loans, Commissioner David Stevens said.

In testimony prepared for a hearing of the House Financial Services Committee today, Stevens said the FHA currently has authority to go after some large-volume lenders to recoup losses on loans that were fraudulently or improperly originated. That power should be extended to all mortgages the agency insures, Stevens said.