The Nation - News from Sept. 6, 1989

Officials at the Department of Housing and Urban Development have decided to revamp, rather than rescind, the troubled mortgage coinsurance program for multifamily housing that resulted in $700 million in defaulted mortgages and sparked a criminal investigation into one participant, the Washington Post reported. HUD Secretary Jack Kemp’s announcement, expected today, will follow a four-month review of the program. HUD will create a new Office of Coinsurance and set stricter eligibility requirements for lenders who want to do business with the government, sources said.