Federal Housing Administration mortgagees will be subject to more rigorous peformance standards under new regulations that will also revise the process of reimbursing the cost of insurance claims when FHA rules weren't followed.

The process used by FHA to demand that mortgagees indemnify the Department of Housing and Urban Development on insurance claims is being strengthened.

In addition, becoming approved as an FHA mortgagee with the authority to insure loans on HUD's behalf, and maintaining that approval status, will require stricter performance standard

---