Appraiser-Monitoring Program to Start
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The Department of Housing and Urban Development will unveil a system next week to monitor home appraisers in an effort to reduce a rising level of delinquencies of government-backed loans to low-income households.
The system will seek to remove individuals whose appraisals lead to excessive rates of delinquencies and foreclosures on Federal Housing Administration, or FHA, loans.
HUD and the FHA, which insures lenders against loss on mortgages, have come under fire from critics who claim their lack of oversight of appraisers has led to abuses in lending to low-income households. FHA loan delinquencies exceeded 11% in the first quarter, compared with 3% for conventional mortgage loans.
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