Statement by FHA Commissioner on court rulingupholding HUD's authority to terminate alender with high default rate.
Federal Housing Commissioner William C. Apgar today issued the following statement in response tothe ruling by the Fourth U.S. Circuit Court of Appeals upholding the Department of Housing andUrban Development?s authority to bar Capitol Mortgage Bankers, Inc., from originating FHA-insuredmortgages. The Circuit Court reversed a U.S. District Court decision that said HUD had exceeded itsstatutory authority in barring Capitol Mortgage."This is what we are required to do under the National HousingAct that created FHA and the Housing and Community Development Act, which included specifiedappropriate actions to be taken to reduce losses in the FHA program. Bad lenders beware. "
Thanks to Abhijeet Chavan
FULL STORY: HUD No.00-164
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