[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