Beware the Mortgagee Review Board
The Mortgagee Review Board (MRB) was established by statute in 1989 as an enforcement body to oversee the performance of Federal Housing Administration (FHA) lenders. Its mission is to protect FHA and its mortgage insurance funds from fraud and program abuse, and to deter noncompliance and mortgage lending irregularities. The MRB imposes administrative sanctions on FHA-approved lenders that violate applicable statutes, regulations and hand-book requirements relating to the origination and servicing of Department of Housing and Development (HUD)-insured and FHA-insured single-family and multifamily loans. In the article, Mr. Gordon and Mr. Niles discuss the MRB's operations and sanctions and address how a lender should respond to an MRB notice of violation. The most important thing to remember is a lender that receives a notice of violation from the MRB must treat it as a serious matter with short deadlines and significant consequences. To achieve the best resolution possible, it is vital to mount a prompt, vigorous and knowledgeable defense. To view the full article, please visit the link below.