[Federal Register Volume 75, Number 191 (Monday, October 4, 2010)]
[Notices]
[Pages 61164-61165]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-24827]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5411-N-03]
Credit Watch Termination Initiative Termination of Origination
Approval Agreements
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice.
-----------------------------------------------------------------------
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 43rd 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(es) 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 those already underwritten and approved by a DE underwriter, and
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 FHA insured mortgagee with
direct endorsement approval for the area covered by the termination.
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 reinstatement of the
Origination Approval Agreement if the Approval for the affected branch
or branches has been terminated for at least six months and the
mortgagee continues to be an approved mortgagee meeting the
requirements of 24 CFR 202.5, 202.6, 202.7, 202.8 and 202.12. However,
Mortgagee Letter 2010-20 and Final Rule 5356-F-02 at 24 CFR 202
eliminates FHA approval for loan correspondents after December 31,
2010. Therefore, HUD will not accept requests for reinstatement from
loan correspondents after that date. The mortgagee's application for
reinstatement must be in a format prescribed by the Secretary and
signed by the mortgagee. In addition, the application must be
accompanied by an independent analysis 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 analysis must be prepared
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
[[Page 61165]]
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:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Termination
Mortgagee name Mortgagee branch address HUD office jurisdictions effective date Homeownership centers
--------------------------------------------------------------------------------------------------------------------------------------------------------
Access National Mortgage Corporation 1800 Robert Fulton Drive, Ste 350, Atlanta.................... 7/9/2010 Atlanta.
Reston, VA 20191.
Access National Mortgage Corporation 1800 Robert Fulton Drive, Ste 350, Boston..................... 7/9/2010 Philadelphia.
Reston, VA 20191.
Access National Mortgage Corporation 1800 Robert Fulton Drive, Ste 350, Greensboro................. 7/9/2010 Atlanta.
Reston, VA 20191.
Allied Home Mortgage Capital 6110 Pinemont Drive, Ste 215, Baltimore.................. 5/27/2010 Philadelphia.
Corporation. Houston, TX 77092.
1st Continental Mortgage Inc........ 2691 E. Oakland Park Blvd., Ste 2, Tampa...................... 5/20/2010 Atlanta.
Ft. Lauderdale, FL 33306.
American First Mortgage LLC......... 7155 Kerr Plaza, Olive Branch, MS Memphis.................... 5/20/2010 Atlanta.
38654.
Amerinet Financial LLC.............. 16201 Trade Zone Ave, Ste 101, Upper Washington................. 5/20/2010 Philadelphia.
Marlboro, MD 20774.
Associated Capital Resources Inc.... 706 East Bell Road, Ste 100, Phoenix, Phoenix.................... 5/20/2010 Santa Ana.
AZ 85022.
Castle Home Mortgage Corp........... 1600 Route 22, East, Union, NJ 07083. Newark..................... 5/20/2010 Philadelphia.
Dell Franklin Financial LLC......... 7061 Columbia Gateway Dr, Ste 110, Washington................. 5/20/2010 Philadelphia.
Columbia, MD 21046.
Dell Franklin Financial LLC......... 7061 Columbia Gateway Dr, Ste 110, Richmond................... 5/20/2010 Philadelphia.
Columbia, MD 21046.
EMI Equity Mortgage INC............. 1651 Ave Ponce De Leon, San Juan, PR Caribbean.................. 5/28/2010 Atlanta.
00909.
First Mortgage Group INC............ 118 Moulton Street East, Ste 2, Birmingham................. 5/28/2010 Atlanta.
Decatur, AL 35601.
Fox Valley Mortgage Group........... 455 East Main Street, East Dundee, IL Chicago.................... 7/9/2010 Philadelphia.
60118.
Hanover Funding INC................. 7 Kingsbridge Road, Fairfield, NJ Newark..................... 5/20/2010 Philadelphia.
07004.
JPMorgan Chase Bank NA.............. 900 Stewart Avenue, Garden City, NY Atlanta.................... 7/11/2010 Atlanta.
11530.
JPMorgan Chase Bank NA.............. 900 Stewart Avenue, Garden City, NY New Orleans................ 7/11/2010 Denver.
11530.
Key Financial Corporation........... 3631 131st Avenue North, Clearwater, Baltimore.................. 7/1/2010 Philadelphia.
FL 33762-4263.
Midwest Funding Group............... 6343 Presidential Gateway, Columbus, Columbus................... 5/20/2010 Atlanta.
OH 43231-7695.
Mortgage Plus INC................... 67 Walnut Avenue, Ste 310, Clark, NJ Newark..................... 5/28/2010 Philadelphia.
07066-1687.
Pacific Coast Mortgage INC.......... 6991 East Camelback Rd., Ste C250, Phoenix.................... 5/28/2010 Santa Ana.
Scottsdale, AZ 85251-2452.
Preferred Lending Group LLC......... 9700 63rd Ave. N Ste 205, Maple Minneapolis................ 6/1/2010 Denver.
Grove, MN 55369.
Real Estate Mortgage Network, Inc... 70 Grand Avenue, River Edge, NJ 07661 Atlanta.................... 7/2/2010 Atlanta.
Residential Mortgage Corp........... 1332 Andrea Street, Bowling Green, KY Louisville................. 6/1/2010 Atlanta.
42104-3334.
Summit Funding...................... 2601 Fair Oaks Boulevard, Sacramento, Fort Worth................. 7/1/2010 Denver.
CA 95864.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Dated: September 23, 2010.
David H. Stevens,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2010-24827 Filed 10-1-10; 8:45 am]
BILLING CODE 4210-67-P