Housing and Urban Development Secretary Shaun Donovan is expected to tell lawmakers Wednesday that the Federal Housing Administration needs greater authority to cut off mortgage lenders with high default rates.

FHA Commissioner Dave Stevens said in an interview Tuesday that his agency, a part of HUD, is focusing on lenders that have outsized default rates. However, it can terminate a lender's authority to write FHA loans only if HUD's Mortgagee Review Board finds the lender has broken agency rules.

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