[Federal Register Volume 59, Number 19 (Friday, January 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1785]
[Federal Register: January 28, 1994]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Housing--Federal Housing
Commissioner
[Docket No. N-94-3708; FR-3641-N-01]
Mortgagee Review Board Administrative Actions
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice.
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SUMMARY: In compliance with section 202(c) of the National Housing Act,
notice is hereby given of the cause and description of administrative
actions taken by HUD's Mortgagee Review Board against HUD-approved
mortgagees.
FOR FURTHER INFORMATION CONTACT: William Heyman, Director, Office of
Lender Activities and Land Sales Registration, 451 Seventh Street, SW.,
Washington, DC 20410, telephone (202) 708-1824. The Telecommunications
Device for the Deaf (TDD) number is (202) 708-4594. (These are not
toll-free numbers).
SUPPLEMENTARY INFORMATION: Section 202(c)(5) of the National Housing
Act (added by Section 142 of the Department of Housing and Urban
Development Reform Act of 1989 (Pub.L. 101-235, approved December 15,
1989) requires that HUD ``publish in the Federal Register a description
of and the cause for administrative action against a HUD-approved
mortgagee'' by the Department's Mortgagee Review Board. In compliance
with the requirements of section 202(c)(5), notice is hereby given of
administrative actions that have been taken by the Mortgagee Review
Board from October 1, 1993 through December 31, 1993.
1. Certified Mortgage Bankers, Inc., Coral Gables, Florida
Action: Proposed Settlement Agreement that includes indemnification
to the Department for claim losses in connection with three improperly
originated loans, and payment of a civil money penalty in the amount of
$500 for reporting violations under the Home Mortgage Disclosure Act
(HMDA).
Cause: A HUD monitoring review that cited the company for
violations of HUD-FHA program requirements that included: failure to
comply with HUD-FHA reporting requirements under the Home Mortgage
Disclosure Act (HMDA); failure to verify mortgagors' source of funds
used for downpayment and/or closing costs; failure to properly verify a
mortgagor's employment, income and property occupancy; and failure to
maintain an adequate Quality Control Plan.
2. Pioneer Mortgage, Inc., Haddon Heights, New Jersey
Action: Proposed Settlement Agreement that includes indemnification
to the Department for claim losses in connection with three improperly
originated loans, and corrective action to assure compliance with HUD-
FHA requirements.
Cause: A HUD monitoring review that disclosed violations of HUD-FHA
program requirements including: failure to implement a Quality Control
Plan in compliance with HUD-FHA requirements; failure to verify a
mortgagor's source of funds used for downpayment and closing costs; and
failure to adequately verify mortgagors' income.
3. American Mortgage Corp., Seattle, Washington
Action: Proposed Settlement Agreement that includes indemnification
to the Department for claim losses in connection with five improperly
originated loans, and corrective action to assure compliance with HUD-
FHA requirements.
Cause: A HUD monitoring review that disclosed violations of HUD-FHA
program requirements that included: failure to implement a Quality
Control Plan; sharing office space and commingling employees with
another firm; failure to verify the source of mortgagor funds used for
downpayment and closing costs; permitting a mortgagor and real estate
agent to handcarry a verification of employment and verification of
deposit; failure to properly verify monthly effective income; and
failure to ensure that face-to-face interviews are conducted with
mortgagors prior to submission of HUD-FHA loan applications to AMC's
underwriter.
4. Gulf States Mortgage Co., Atlanta, Georgia
Action: Proposed Settlement Agreement that provides for
indemnification to the Department for claim losses in connection with
ten improperly originated loans, and corrective action to assure
compliance with HUD-FHA requirements.
Cause: A HUD monitoring review that cited the company for
violations of HUD-FHA program requirements that included: overinsured
mortgages; failure to verify mortgagors' source and/or adequacy of
funds for downpayment and/or closing costs; failure to conduct adequate
face-to-face interviews with mortgagors; permitting mortgagors to
handcarry verifications of employment; and failure to properly complete
the Form HUD 92900.
5. Mortgage Resource Center, Inc., Greensboro, North Carolina
Action: Proposed Settlement Agreement that includes payment of a
civil money penalty in the amount of $1,000, and corrective action to
assure compliance with HUD-FHA requirements.
Cause: A HUD monitoring review that cited the company for
violations of HUD-FHA requirements that included: failure to comply
with the reporting requirements under the Home Mortgage Disclosure Act
(HMDA); failure to implement a Quality Control Plan; charging
unallowable fees to mortgagors; and failure to maintain complete loan
files.
6. Alcola Mortgage Corporation, Northridge, California
Action: Probation and proposed civil money penalty in the amount of
$1,500.
Cause: A HUD monitoring review that disclosed violations of HUD-FHA
requirements that included: failure to comply with the Department's
requirements for office facilities; failure to implement an adequate
Quality Control Plan; failure to comply with reporting requirements
under the Home Mortgage Disclosure Act (HMDA); and submitting a false
certification to HUD-FHA concerning the location of the company's
office facilities.
7. L.J. Wright Financial Resource Company, Phoenix, Arizona
Action: Letter of Reprimand.
Cause: A HUD monitoring review that cited the company for failure
to comply with HUD-FHA reporting requirements under the Home Mortgage
Disclosure Act (HMDA).
8. Mortgagees Cited for Failure To Comply with HUD-FHA Reporting
Requirements Under the Home Mortgage Disclosure Act (HMDA) and/or
Maintain an Adequate Quality Control Plan.
Action: Letters of Reprimand and proposed civil money penalty in
the amount of $500.
Cause: HUD monitoring reviews that disclosed noncompliance by the
following mortgagees with the Department's reporting requirements under
HMDA and/or failure to comply with HUD-FHA requirements for maintaining
a Quality Control Plan.
Mortgagees issued a Letter of Reprimand with a proposed civil money
penalty for failure to meet HMDA reporting requirements and to maintain
an adequate Quality Control Plan.
All Service Mortgage Corporation, Largo, FL; Cannon Mortgage
Company, Tustin, CA; Karma Mortgage, Orange, CA; Colorado Mortgage
Professionals, Englewood, CO; Cypress Mortgage, Inc., Austin, TX;
Franklin-Harris Associates, Longmont, CO; and Lincoln Home Mortgage,
Inc., Roselle, IL.
Mortgagees issued a Letter of Reprimand with a proposed civil money
penalty for failure to report HMDA data only.
Affordable Mortgage Corporation, Wappinger Falls, NY; and Mission
Hills Mortgage Corporation, Santa Ana, CA.
Dated: January 19, 1994.
Nicolas P. Retsinas,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 94-1785 Filed 1-27-94; 8:45 am]
BILLING CODE 4210-27-P