Ohio Banks Accused of Sending Bad Loans to FHA

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00013643-ohio-banks-accused-of-sending-bad-loans-t/

Turns out the $265 million in bad mortgages Ohio?s National City Mortgage and Huntington National Bank offloaded on to the Federal Housing Commission could be considered fraudulent. According to a story running on banknet360.com, Government audits are claiming that the two lenders shifted mortgages with delinquency histories to the FHA?s insurance program.

The problem is, each lender certified that there were no delinquency problems with the loans in question. Fraud like this could result in fines, the loans being rescinded, or reimbursement of any losses incurred by FHA.

You can read more about this story at Ohio Banks Accused of Sending Bad Loans to FHA.