HUD Facing Large Loan Defaults: The Department...

HUD Facing Large Loan Defaults: The Department of Housing and Urban Development faces some $650 million in loan defaults from nine mortgage companies whose practices now are under review, a spokesman said. Three of the nine companies have been suspended indefinitely from doing business with the department, three others have been placed on probation for six months and three more face examination of their projects, HUD documents show. TRI Capital Corp. of San Francisco was one of the three lenders under review.