Forbes - In the event of fraud or certain misrepresentations at the time of the sale of such FHA-insured loans, the Company may be liable for losses suffered either by the mortgage purchaser, or HUD if any payment was made pursuant to an FHA loan guarantee ...

Mixed signals for home buyers, lenders
Houston Chronicle - ... help, have sued to stop the HUD ban. Three congressional Democrats, including Houston's Al Green, think the nonprofits' programs can continue if they are modified. They want the FHA to follow the example of the Veterans Administration home loan program ...