Officials from FHA also say they will send a special team ofabout 60 agents to the city to ensure that lenders and mortgagebrokers who make the federally backed loans are following legalguidelines.
The FHA says most of the troubled loans are in two areas itdescribes as "hot zones." The first runs along the Harbor Freeway,between the Hollywood Freeway and Gardena Freeway. The secondcovers a relatively small portion of Long Beach.
Most of the neighborhoods in those areas are predominatelyoccupied by low-income persons and immigrants. The default rate onFHA loans in some of those communities tops 15%, compared to acountywide average of only 3.6%, the government says.
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