
Fall guy? FHA cites First Guaranty on loans
The Federal Housing Administration’s Mortgagee Review Board today announced a settlement agreement with a Virginia-based mortgage lender for failing to apply FHA’s underwriting standards when approving loans. Among the alleged violations, the MRB claimed First Guaranty Mortgage Corporation ignored blemished credit and payment histories, approved loans with debt-to-income ratios that exceeded HUD’s benchmarks, and permitted…