Officials from FHA also say they will send a special team of about 60 agents to the city to ensure that lenders and mortgage brokers who make the federally backed loans are following legal guidelines.
The FHA says most of the troubled loans are in two areas it describes as "hot zones." The first runs along the Harbor Freeway, between the Hollywood Freeway and Gardena Freeway. The second covers a relatively small portion of Long Beach.
Most of the neighborhoods in those areas are predominately occupied by low-income persons and immigrants. The default rate on FHA loans in some of those communities tops 15%, compared to a countywide average of only 3.6%, the government says.
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