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The scheme cost investors $55 million, saddled banks with $25 million in bad loans and plunged 400 New Jersey properties. Daniel Kelleher, of Lake Wales, Fla.
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FHA loans are home loans insured by the Federal Housing Administration (FHA), which is a part of the U.S. Department of Housing and Urban.
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HUD also suggested that the FHA should examine loans to repeat FHA borrowers to “ensure these mortgage loans are consistent with FHA’s mission.” Yet Chappelle said loans to repeat borrowers perform much better than loans to first-time homebuyers,
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