The Federal Housing
Administration's Mortgagee Review Board (MRB) has revealed a list of over one
thousand lenders against whom it has taken action over the last several months for
violations of the agency's program requirements.
Infractions ranged from failing to notify the
Department of Housing and Urban Development of changes in license status or
office closures, improperly displaying FHA seals on company websites or
advertising materials, and using non-employees to process loans, to failing to properly
process or document credit, employment and appraisal information. The
actions taken by the Board included permanent withdrawal of FHA lending
authority, suspensions, and fines ranging into the high six digits.
"Lenders should know
by now that FHA will not tolerate fraudulent or predatory lending
practices," said FHA Commissioner David Stevens. "Any FHA-approved
lender that does business with us must follow our standards. If we determine
that our partners are not playing by the rules, we will take action - it's that
simple."
Firms that were permanently
banned from participation in FHA Programs were:
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North
Shore Financial, Inc, East Meadow NY for permitting non-employees and/or
mortgage brokers to participate in the loan process and other violations.
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Financial
Mortgage USA, Inc.; also fined $97,500 for violations of requirements that led
to loan defaults.
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Ideal
Mortgage Bankers Ltd./Lend America, Melville, NY.; also fined $512,500 for
submitting false certifications, failing to adequately document the stability
and/or source of income, and other violations.
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Liberty
State Finance, Parsippany, NJ; knowingly employing two individuals who were
debarred and/or had been convicted of an offense.
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North
Shore Financial, Inc., East Meadow, NY; permitting non-employees and mortgage
brokers to participate in the loan process and other violations.
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Strategic
Mortgage Corp., Oklahoma City, OK was also fined $71,000 for hiring independent
contractors and incorrectly reporting compensation to the IRA; improperly charging
borrowers a broker fee in addition to an origination fee, and violation of
RESPA requirements.
-
USA
Home Loans, Towson MD; failing to insure that minimum income, credit, and
property condition requirements were met and failing to notify HUD that its
license had expired.
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U.S.
Mortgage Corp, Pine Brook, NJ; failing to maintain an acceptable warehouse line
of credit or other approved mortgage funding program.
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Premium
Capital Funding/TopDot Mortgage, Jericho, NY; also received a civil penalty of
$674,000 for violations of requirements that led to loan defaults.
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ProMortgage,
Inc., Claremore, OK; also penalized $124,000 for violations of requirements
that led to loan defaults.
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Americare
Investment Group/Premier Capital Lending, Arlington, TX; failing to comply with
terms of an earlier settlement agreement.
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Ikon
Mortgage Lenders, Ft Lauderdale, FL; Federal Guaranty Mortgage Company,
Pembroke Pines, FL; Automated Finance Corporation, Calabasas, CA; Premiere Service
Mortgage Corp., Westchester, OH.; Direct Lending, Inc., Livonia, MI; Jett Financial Services, Inc., San Diego, CA;
closing an office or losing license without notifying HUD
Suspensions of six months to a
year and/or civil money penalties were assessed against:
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Meridian
Lending, Monroe, GA - One year suspension.
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Action
Mortgage Corporation, Cranston, RI - 6 months suspension and $7,000
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Academy
Mortgage Corp. Sandy, UT - $30,000
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Assurety
Financial Services, Englewood, CO - $7,500
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Cooper
and Shein LLC/Great Oak Lending Partners, Timonium, MD - 6 month probation and
$11,000.
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Equitable
Trust Mortgage Corp., Baltimore, MD - $277,500 civil penalty, refund $147,589
in brokers fees to borrowers.
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Franklin
First Financial, Melville, NY - Civil penalty of $413,500; indemnify HUD on 31
loans, and reimburse fees to 78 borrowers.
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Home
Mortgage, Inc., Burr Ridge, IL - suspended pending the outcome of a federal
indictment.
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Nations
Direct, LLC., Irvine, CA - $3,500
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Paramount
Bond Mortgage Company, St, Louis, MO - $68,500 penalty; indemnify HUD on nine
loans.
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Primewest
Mortgage Corp., Lubbock, TX - $168,500.
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Sun
West Mortgage Company, Cerritos, CA - $10,000.
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VanDyk
Mortgage Corp., Grand Rapids, MI - $7,500; indemnify HUD on two loans
The MRB suspended 905 other
companies for one year for failing to comply with the Department's annual
recertification requirements and assessed $3,500 fines against 147 lenders
which had been out of compliance but had cured that situation.
All of the actions and the
reasons for them were published in The Federal Register dated July 26,
2010.