The Circuit Court reversed a U.S. District Court decision that said HUD had exceeded its statutory authority in barring Capitol Mortgage. We welcome the Circuit Court s ruling as a victory for the consumer and a reaffirmation of HUD s responsibility to, in the court s words, 'quickly and efficiently root out poor performing lenders. This is what we are required to do under the National Housing Act that created FHA and the Housing and Community Development Act, which included specified appropriate actions to be taken to reduce losses in the FHA program.
Bad lenders beware.