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Guild Mortgage Company faces federal charges of improper origination and underwriting practices on its FHA-backed loans. The suit was filed by the U.S. District Court for the District of Columbia and announced by HUD and the U.S. Department of Justice this morning.
According to the suit, Guild Mortgage, a San Diego-based mortgage lender, knowingly submitted insurance claims for hundreds of improperly underwritten FHA loans. These claims have cost HUD tens of millions of dollars and, because of the high number of additional loans currently in default, it could cost the agency even more. Mary Ann McGarry, President and CEO of Guild Mortgage responded to the suit initiated against the company by the Department of Justice by stating to MReport that the company does intend to fight the allegations.
Five Star Institute President and CEO Ed Delgado dived in the REO, foreclosure, and default industries in a webinar presentation on Thursday to advise members of the Federation of REO Certified Experts of past and present market conditions. Recent housing data has continually painted a picture of a recovering housing market, and the same proves true for the REO market. In light of the strengthening housing market, Delgado emphasized the need for adaptation among companies in this space.
