[Federal Register Volume 75, Number 156 (Friday, August 13, 2010)]
[Notices]
[Pages 49510-49512]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-20068]
[[Page 49510]]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5411-N-02]
Credit Watch Termination Initiative
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice.
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SUMMARY: This notice advises of the cause and effect of termination of
Origination Approval Agreements taken by HUD's Federal Housing
Administration (FHA) against HUD-approved mortgagees through the FHA
Credit Watch Termination Initiative. This notice includes a list of
mortgagees which have had their Origination Approval Agreements
terminated.
FOR FURTHER INFORMATION CONTACT: The Quality Assurance Division, Office
of Housing, Department of Housing and Urban Development, 451 Seventh
Street, SW., Room B133-P3214, Washington, DC 20410-8000; telephone
(202) 708-2830 (this is not a toll free number). Persons with hearing
or speech impairments may access that number through TTY by calling the
Federal Information Relay Service at (800) 877-8339.
SUPPLEMENTARY INFORMATION: HUD has the authority to address
deficiencies in the performance of lenders' loans as provided in HUD's
mortgagee approval regulations at 24 CFR 202.3. On May 17, 1999 HUD
published a notice (64 FR 26769), on its procedures for terminating
Origination Approval Agreements with FHA lenders and placement of FHA
lenders on Credit Watch status (an evaluation period). In the May 17,
1999 notice, HUD advised that it would publish in the Federal Register
a list of mortgagees, which have had their Origination Approval
Agreements terminated.
Termination of Origination Approval Agreement: Approval of a
mortgagee by HUD/FHA to participate in FHA mortgage insurance programs
includes an Origination Approval Agreement (Agreement) between HUD and
the mortgagee. Under the Agreement, the mortgagee is authorized to
originate single-family mortgage loans and submit them to FHA for
insurance endorsement. The Agreement may be terminated on the basis of
poor performance of FHA-insured mortgage loans originated by the
mortgagee. The termination of a mortgagee's Agreement is separate and
apart from any action taken by HUD's Mortgagee Review Board under HUD's
regulations at 24 CFR part 25.
Cause: HUD's regulations permit HUD to terminate the Agreement with
any mortgagee having a default and claim rate for loans endorsed within
the preceding 24 months that exceeds 200 percent of the default and
claim rate within the geographic area served by a HUD field office, and
also exceeds the national default and claim rate. For the 42nd review
period, HUD is terminating the Agreement of mortgagees whose default
and claim rate exceeds both the national rate and 200 percent of the
field office rate.
Effect: Termination of the Agreement precludes that branch(s) of
the mortgagee from originating FHA-insured single-family mortgages
within the area of the HUD field office(s) listed in this notice.
Mortgagees authorized to purchase, hold, or service FHA insured
mortgages may continue to do so.
Loans that closed or were approved before the termination became
effective may be submitted for insurance endorsement. Approved loans
are (1) those already underwritten and approved by a Direct Endorsement
(DE) underwriter employed by an unconditionally approved DE lender and
(2) cases covered by a firm commitment issued by HUD. Cases at earlier
stages of processing cannot be submitted for insurance by the
terminated branch; however, they may be transferred for completion of
processing and underwriting to another mortgagee or branch authorized
to originate FHA insured mortgages in that area. Mortgagees are
obligated to continue to pay existing insurance premiums and meet all
other obligations associated with insured mortgages.
A terminated mortgagee may apply for a new Origination Approval
Agreement if the mortgagee continues to be an approved mortgagee
meeting the requirements of 24 CFR 202.5, 202.6, 202.7, 202.8 or 202.10
and 202.12, if there has been no Origination Approval Agreement for at
least six months, and if the Secretary determines that the underlying
causes for termination have been remedied. To enable the Secretary to
ascertain whether the underlying causes for termination have been
remedied, a mortgagee applying for a new Origination Approval Agreement
must obtain an independent review of the terminated office's operations
as well as its mortgage production, specifically including the FHA-
insured mortgages cited in its termination notice. This independent
analysis shall identify the underlying cause for the mortgagee's high
default and claim rate. The review must be conducted and issued by an
independent Certified Public Accountant (CPA) qualified to perform
audits under Government Auditing Standards as provided by the
Government Accountability Office. The mortgagee must also submit a
written corrective action plan to address each of the issues identified
in the CPA's report, along with evidence that the plan has been
implemented. The application for a new Agreement should be in the form
of a letter, accompanied by the CPA's report and corrective action
plan. The request should be sent to the Director, Office of Lender
Activities and Program Compliance, 451 Seventh Street, SW., Room B133-
P3214, Washington, DC 20410-8000 or by courier to 490 L'Enfant Plaza,
East, SW., Suite 3214, Washington, DC 20024-8000.
Action: The following mortgagees have had their Origination
Agreements terminated by HUD:
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Mortgagee branch HUD office Termination
Mortgagee name address jurisdictions effective date Homeownership centers
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1st Continental Mortgage, Inc 2691 E. Oakland Orlando.............. 4/28/2010 Atlanta
Park Blvd,
Suite 203, Fort
Lauderdale, FL
3306.
1st Continental Mortgage, Inc 2691 E. Oakland Jacksonville......... 4/28/2010 Atlanta
Park Blvd,
Suite 203, Fort
Lauderdale, FL
3306.
1st Continental Mortgage, Inc 2691 E. Oakland Birmingham........... 4/28/2010 Atlanta
Park Blvd,
Suite 203, Fort
Lauderdale, FL
3306.
Allied Home Mortgage Capital 6110 Pinemont Newark............... 4/9/2010 Denver
Corp. Drive, Suite
215, Houston,
TX 77092.
Allied Home Mortgage Capital 6110 Pinemont Washington, DC....... 4/9/2010 Philadelphia
Corp. Drive, Suite
215, Houston,
TX 77092.
Americare Investment Group, 901 W. Bardin Dallas............... 2/18/2010 Denver
Inc. d/b/a Premier Capital Road, Suite
Lending. 200, Arlington,
TX 76017.
[[Page 49511]]
Ameristar Mortgage & 2468 Old Birmingham........... 4/9/2010 Denver
Financial Services, Inc. Springville
Road,
Birmingham, AL
35215.
Community West Mortgage, LLC. 3360 South Denver............... 2/18/2010 Denver
Wadsworth
Blvd.,
Lakewood, CO
80227.
Consumers Real Estate Finance 888 E. Las Olas Cleveland............ 11/4/2009 Santa Ana
Company. Blvd., Suite
506, Ft.
Lauderdale, FL
33301.
D and R Mortgage Corp. d/b/a 29870 Middlebelt Flint................ 4/9/2010 Philadelphia
Metro Finance. Road, Suite
100, Farmington
Hills, MI 48334.
D and R Mortgage Corp. d/b/a 29870 Middlebelt Grand Rapids......... 4/9/2010 Philadelphia
Metro Finance. Road, Suite
100, Farmington
Hills, MI 48334.
D and R Mortgage Corp. d/b/a 29870 Middlebelt Detroit.............. 4/9/2010 Philadelphia
Metro Finance. Road, Suite
100, Farmington
Hills, MI 48334.
D and R Mortgage Corp. d/b/a 29870 Middlebelt Greensboro........... 4/9/2010 Atlanta
Metro Finance. Road, Suite
100, Farmington
Hills, MI 48334.
Dell Franklin Financial, LLC. 8334 Veterans Baltimore............ 4/9/2010 Philadelphia
Highway, Suite
1,
Millersville,
MD 21108.
Essential Mortgage, Inc...... 1701 48th Des Moines........... 4/30/2010 Denver
Street, Suite
110, West Des
Moines, IA
50266.
First Mortgage Corp.......... 3230 Fallow Fresno............... 2/18/2010 Santa Ana
Field Drive,
Diamond Bar, CA
91765.
First Ohio Banc and Lending, 6100 Rockside Richmond............. 4/30/2010 Philadelphia
Inc. Woods Blvd,
Suite 1,
Independence,
OH 44313.
Franklin First Financial, 445 Broadhollow Newark............... 4/9/2010 Philadelphia
Ltd. d/b/a President First Road, Suite
Mortgage Bankers. 215, Melville,
NY 11747.
Franklin First Financial, 445 Broadhollow Camden............... 4/9/2010 Philadelphia
Ltd. d/b/a President First Road, Suite
Mortgage Bankers. 215, Melville,
NY 11747.
Gateway Funding Diversified 300 Welsh Road, Camden............... 2/18/2010 Philadelphia
Mtg. SRVS LP. Building 5,
Horsham, PA
19044.
Gold Star Home Mortgage, LLC. 3007 North Belt Kansas City.......... 2/18/2010 Denver
Highway, Suite
K, Saint
Joseph, MO
64506.
Group Two Thousand Real 8010 Haven Santa Ana............ 4/9/2010 Santa Ana
Estate Services d/b/a Empire Avenue, Rancho
Financial. Cucamonga, CA
91730.
Interlinc Mortgage, Inc...... 19221 Interstate San Antonio.......... 4/30/2010 Denver
45, Suite 210,
Conroe, TX
77385.
Jagle and Associates, LLC.... 900 N. Federal Miami................ 2/18/2010 Atlanta
Highway, Suite
240, Boca
Raton, FL 33432.
Loanmans Mortgage Store, LLC 602 S. Marina Omaha................ 4/23/2010 Denver
d/b/a Hamilton Lending. Drive, Gilbert,
AZ 85233.
Morrison Capital Corporation, 251 S.W. Noel Kansas City.......... 4/30/2010 Denver
Inc. Street, Lees
Summit, MO
64063.
Neighborhood Funding, Inc.... 8910 N. Dale Atlanta.............. 2/18/2010 Atlanta
Mabry Highway,
Suite 18,
Tampa, FL 33614.
Newport Shores Mortgage, Inc. 1526 York Road, Greensboro........... 2/18/2010 Atlanta
Lutherville
Timonium, MD
21093.
Paraiso, LLC................. 5505 Roswell Atlanta.............. 2/18/2010 Atlanta
Road, NE.,
Suite 250,
Atlanta, GA
30342.
Pinnacle Mortgage Funding, 250 E. 96th, Indianapolis......... 2/18/2010 Denver
LLC. Suite 125,
Indianapolis,
IN 46240.
Premium Capital Funding, LLC 125 Jericho Jacksonville......... 2/18/2010 Atlanta
d/b/a Topdot Mortgage. Turnpike, Suite
400, Jericho,
NY 11753-1030.
Premium Capital Funding, LLC 125 Jericho Atlanta.............. 2/18/2010 Atlanta
d/b/a Topdot Mortgage. Turnpike, Suite
400, Jericho,
NY 11753-1030.
Premium Capital Funding, LLC 125 Jericho Baltimore............ 2/18/2010 Philadelphia
d/b/a Topdot Mortgage. Turnpike, Suite
400, Jericho,
NY 11753-1030.
Premium Capital Funding, LLC 125 Jericho Richmond............. 2/18/2010 Philadelphia
d/b/a Topdot Mortgage. Turnpike, Suite
400, Jericho,
NY 11753-1030.
Republic State Mortgage...... 2715 Bissonnet Dallas............... 4/30/2010 Denver
Street, Suite
102, Houston,
TX 77005.
Tamayo Financial Services, 16123 La Grange Chicago.............. 4/30/2010 Atlanta
Inc. Road, Orland
Park, IL.
The First Fidelity Mortgage 9607 Belair Columbia............. 2/18/2010 Atlanta
Group d/b/a First Fidelity Road,
Mortgage. Baltimore, MD
21236.
The First Fidelity Mortgage 9607 Belair Greensboro........... 2/18/2010 Atlanta
Group d/b/a First Fidelity Road,
Mortgage. Baltimore, MD
21236.
Weststar Mortgage Group...... 2155 Louisiana Dallas............... 4/28/2010 Denver
Boulevard, NE.,
Albuquerque, NM
87110.
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[[Page 49512]]
Dated: July 30, 2010.
David H. Stevens,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2010-20068 Filed 8-12-10; 8:45 am]
BILLING CODE 4210-67-P