NHB steps up surprise checks to gauge housing finance companies’ health
The National Housing Bank (NHB) is holding surprise inspections of mortgage financiers to ensure their proper functioning after the recent discovery of fraud at Aviom Housing Finance, said two officials familiar with the matter. These investigations are in addition to two annual credit reviews NHB usually performs of mortgage financiers. Officers at the quasi-housing finance regulator are currently focusing on how refinancing funds are being used to ensure their proper allocation, the officials said. They are also verifying whether housing finance companies (HFCs) are accurately reporting data on bad loans and validating the authenticity of their investment portfolios. “NHB’s primary…