HUD Announces Mortgagee Review Board Administrative Actions
Targeted News Service |
A Notice by the
Action
Notice.
Summary
In compliance with Section 202(c)(5) of the National Housing Act, this notice advises of the cause and description of administrative actions taken by
Publication Date:
Agency:
Entry Type: Notice
Action: Notice.
Document Citation: 79 FR 41586
Page: 41586 -41590 (5 pages)
Agency/Docket Number: Docket No. FR-5802-N-01
Document Number: 2014-16722
Shorter URL: https://federalregister.gov/a/2014-16722
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
Section 202(c)(5) of the National Housing Act (12 U.S.C. 1708(c)(5)) requires that HUD "publish a description of and the cause for administrative action against a HUD-approved mortgagee" by the Department's
I. Civil Money Penalties, Withdrawals of FHA Approval, Suspensions, Probations, Reprimands, and Administrative Payments
1.
Action: On
Cause: The Board took this action based on the following violations of HUD/FHA requirements alleged by HUD:
2.
Action: On
Cause: The Board took this action based on the following violation of HUD/FHA requirements alleged by HUD: ASMC violated the requirements of two (2) indemnification agreements with HUD by failing to timely remit payments owed to HUD.
3.
Action: On
Cause: The Board took this action based on the following violation of HUD/FHA requirements alleged by HUD: During the period from
4.
Action: On
Cause: The Board took this action based on the following violation of HUD/FHA requirements alleged by HUD: In accordance with HUD requirements, Ark failed to establish and implement a quality control plan; failed to adequately verify the borrower's source of funds to close; and failed to ensure that loan documents were not faxed from an interested third party.
5.
Action: On
Cause: The Board took this action based on the following violations of HUD/FHA requirements alleged by HUD: BJV failed to comply with HUD's Quality Control requirements; failed to disclose affiliated business arrangements; charged unallowable and/or unearned fees; failed to resolve discrepancies and/or conflicting information in loan documents; and submitted a false certification to HUD on
6.
Action: On
Cause: The Board took this action based on the following violation of HUD/FHA requirements alleged by HUD: CFMC failed to notify HUD/FHA that it had been suspended by the Commonwealth of
7.
Action: On
Cause: The Board took this action based on the following violation of HUD/FHA requirements alleged by HUD: CFMC failed to notify HUD/FHA that it had been suspended by the Commonwealth of
8. Crossfire Financial Network,
Action: On
Cause: The Board took this action based on the following violation of HUD/FHA requirements alleged by HUD: CFN approved an illegible HUD/FHA cash-out refinance loan.
9.
Action: On
Cause: The Board took this action based on the following violation of HUD/FHA requirements alleged by HUD: EL falsely certified on its 2009 and 2010 annual certifications that it was not subject to any adverse action filed by a state regulatory agency, failed to notify HUD/FHA of adverse actions filed by state governmental agencies within ten (10) business days of the sanction, failed to maintain a Quality Control (QC) Plan that contained all of the required elements, failed to ensure the review of all Early Payment Defaults, and failed to ensure that loans were originated in accordance with HUD/FHA guidelines.
10.
Action: On
Cause: The Board took this action based on the following violations of HUD/FHA requirements alleged by HUD: ESHL failed to comply with HUD's annual recertification requirements for its fiscal year ending
11.
Action: On
Cause: The Board took this action based on the following violations of HUD/FHA requirements alleged by HUD: FTB failed to properly service FHA-insured loans; and/or failed to adequately evaluate or document its evaluation of loss mitigation techniques used to determine which loss mitigation techniques were appropriate; failed to adequately evaluate and/or document its evaluation of the borrower's financial condition and eligibility for FHA Home Affordable Modification Program (HAMP); failed to adequately evaluate and/or document its evaluation of a borrower for all available HUD/FHA loss mitigation alternatives for one (1) loan; improperly referred a loan to foreclosure while evaluating the borrower for loss mitigation alternatives; failed to properly document the assumption of an FHA-insured loan; failed to appropriately apply HUD's property preservation and inspection regulations; and failed to properly report and code one hundred thirty-three (133) loans through HUD's Single Family Default Monitoring System (SFDMS).
12.
Action: On
Cause: The Board took this action based on the following violations of HUD/FHA requirements alleged by HUD: FHMC failed to ensure that no one was employed that was debarred or otherwise not allowed to perform activities involving the processing, origination or underwriting of FHA insured loans; failed to ensure its Quality Control (QC) Plan contained all of the required elements; failed to ensure it conducted QC reviews on loans that went into default within the first six (6) months of repayment; failed to implement its QC plan in accordance with HUD/FHA requirements; failed to ensure that it complied with HUD's requirements for Lender Insured (LI) loans; and made two (2) false certifications to HUD on FHMC's annual recertification submission.
13.
Action: On
Cause: The Board took this action based on the following violations of HUD/FHA requirements alleged by HUD: Franklin failed to ensure that loan documents were not faxed from an interested third party or to resolve discrepancies with conflicting information; failed to verify and adequately document the borrower's earnest money deposit, source of funds to close and/or to pay consumer debts; failed to adequately document the income and/or stability of income used to qualify the borrowers; failed to downgrade a loan to its proper finding and manually underwrite the loan, which was required due to disputed accounts on the credit report; failed to ensure the borrower was eligible for maximum financing above ninety percent (90%) for a new construction property; and failed to properly calculate the maximum allowable mortgage for a streamline refinance transaction without an appraisal, which resulted in the approval of an over-insured loan.
14.
Action: On
Cause: The Board took this action based on the following violations of HUD/FHA requirements alleged by HUD: MLD failed to properly document and verify funds used as gifts; exceeded FHA's maximum mortgage amount, resulting in two (2) over-insured loans; failed to properly analyze liabilities; charged the borrowers a commitment fee without a lock-in agreement guaranteeing, in writing, the interest rate and discount points for at least fifteen (15) days prior to loan closing; and failed to comply with settlement requirements needed to close.
15.
Action: On
Cause: The Board took this action based on the following violations of HUD/FHA requirements alleged by HUD:
16.
Action: On
Cause: The Board took this action based on the following violations of HUD/FHA requirements alleged by HUD: NCFC submitted two (2) false annual certifications to HUD/FHA on
17.
Action: On
Cause: The Board took this action based on the following violation of HUD/FHA requirements alleged by HUD: PFG failed to submit an acceptable Audited Financial Statement for the fiscal year ending
18.
Action: On
Cause: The Board took this action based on the following violations of HUD/FHA requirements alleged by HUD: RHL failed to provide the required construction-permanent mortgage disclosures and obtain required certifications pertaining to liens; failed to obtain construction loan agreements; failed to disburse construction-permanent loan proceeds, in accordance with HUD requirements; failed to fully account for the disbursement of escrowed loan proceeds; failed to obtain written approval from the mortgagor prior to the release of construction draw funds; failed to obtain complete sales agreements; failed to ensure that manufactured home properties were eligible for FHA mortgage insurance; failed to verify and properly document funds for the mortgagor's cash investment in the property; submitted loans for FHA mortgage insurance that exceeded the applicable loan-to-value limits; and charged an excessive and unearned fee.
19.
Action: On
Cause: The Board took this action based on the following violations of HUD/FHA requirements alleged by HUD: TXL failed to ensure that individuals originating HUD/FHA loans were exclusively employed by TXL in the mortgage lending field; failed to meet branch requirements for participation in the FHA mortgage insurance program; failed to ensure that the correct mortgagee identification number was used when originating FHA-insured mortgage loans; failed to comply with FHA Connection (FHAC) data entry requirements regarding sponsored originators; failed to document that it had performed adequate pre-insurance reviews of loans it approved under the
20.
Action: On
Cause: The Board took this action based on the following violations of HUD/FHA requirements alleged by HUD: USB failed to have FHA multifamily mortgages serviced by an FHA approved mortgagee, and permitted escrow funds to be used for a purpose other than that for which they were received.
21.
Action: On
Cause: The Board took this action based on the following violation of HUD/FHA requirements alleged by HUD: Webster permitted a non-approved lender to obtain and process loan applications, and failed to ensure borrowers made the minimum required investment.
II. Lenders That Failed To Timely Meet Requirements for Annual Recertification of HUD/FHA Approval
Action: The Board entered into settlement agreements with the lenders listed below, which required the lender to pay either a
Cause: The Board took this action based upon allegations that the lenders listed below failed to comply with the Department's annual recertification requirements in a timely manner.
1. Coast 2
2.
3. First National Bank at
III. Lenders That Failed To Meet Requirements for Annual Recertification of HUD/FHA Approval
Action: The Board voted to withdraw the FHA approval of each of the lenders listed below for a period of one (1) year, or permanently.
Cause: The Board took this action based upon allegations that the lenders listed below were not in compliance with the Department's annual recertification requirements.
1. 1st
2.
3.
4.
5. Best Mortgage, Inc.,
6. Capital Mortgage Funding,
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
Dated:
Assistant Secretary for
[FR Doc. 2014-16722 Filed 7-15-14;
BILLING CODE 4210-67-P
[*Federal RegisterRK 2014-07-16]
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