Protecting the fresh federal taxpayers off people that complete not the case or fraudulent claims for the government fisc was a vital reason for new Agency of Fairness which form boasts attempting to protect the new Government Construction Management (FHA). It efforts are a single facet of the department’s larger efforts to battle the type of monetary fraud one has just drove the American economy for the brink.

This new FHA’s financial insurance coverage system was among the victims of these types of fraudulent schemes. This new purpose of the FHA would be to assist creditworthy lower income and you may very first time homeowners-people and you can family members commonly declined conventional credit-locate a home loan and get property. The purpose of these types of rules is actually twofold: very first, making sure that the folks and you may parents who obtain FHA insured mortgage loans have the ability to make the mortgage payments and remain into the their homes, and you can next, to safeguard the brand new FHA insurance policies financing, as it’s the newest FHA and not the lending company that is financially in control in the event the a loan defaults. [Read more…]