HUD’s Rulemaking Stealth Exposed

Lawmakers want HUD to explain why the department is trying to sneak through a major policy change that would allow big banks convicted of felonies to continue lending through the Federal Housing Administration. HUD, in a May 15 proposed rule published in the Federal Register, wants to delete a requirement that lenders certify they haven’t been convicted of violating antitrust laws or other crimes.The proposal coincided with May guilty pleas to criminal violations of federal antitrust law by JPMorgan Chase and Citigroup, the nation’s largest and third-largest banks, respectively, doing business with the FHA. It was the first time in several years that large U.S. banks have pled guilty to criminal charges. “We are concerned that the proposed changes, the most significant of which were not described in the notice, would make it easier for lenders who have engaged i [...]

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