[Federal Register Volume 60, Number 235 (Thursday, December 7, 1995)]
[Notices]
[Pages 62875-62876]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-29805]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-3911-N-03]
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,
S.W., Washington, D.C. 20410, telephone (202) 708-1515. The
Telecommunication 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 July 1, 1995
through September 30, 1995.
1. The Professional Investment & Financial Group; San Gabriel,
California
ACTION: Settlement Agreement that includes payment to the Department of
a civil money penalty in the amount of $1,000; and revision of the
advertising used by the company in its HUD-FHA Title I program
activities to comply with HUD-FHA requirements.
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CAUSE: Use of misleading advertising by the company in connection with
the HUD-FHA Title I property improvement loan program.
2. Washington Credit Union; Lynwood, Washington
ACTION: Settlement Agreement that includes payment to the Department of
a civil money penalty in the amount of $5,000, and corrective action to
assure compliance with HUD-FHA requirements.
CAUSE: A HUD monitoring review that disclosed violations of HUD-FHA
Title I property improvement loan program requirements that included:
failure to comply with HUD-FHA reporting requirements under the Home
Mortgage Disclosure Act (HMDA); failure to comply with dealer approval
requirements; failure to report borrowers' uncompleted property
improvements; inaccurate completion certificates; and failure to
resolve a borrower complaint against a dealer.
3. World Wide Credit Corporation; San Diego, California
ACTION: Settlement Agreement that includes indemnification to HUD-FHA
for any claim losses in connection with 10 improperly originated Title
I loans; implementation of a Quality Control Plan; and payment to the
Department of a civil money penalty in the amount of $1,500.
CAUSE: A HUD monitoring review that disclosed violations of HUD-FHA
Title I property improvement loan program
[[Page 62876]]
requirements that included: failure to document borrowers source of
funds required for loan fees and closing costs; advising borrowers that
loan fees may be deducted from loan proceeds; improperly advising
borrowers to obtain gift letters; and omitting the loan disbursement
date on the Note.
4. PNC Mortgage Corp. of America; Vernon Hills, Illinois
ACTION: Settlement Agreement that includes a payment to the Department
of $182,180; and an independent CPA review of the company's HUD-FHA
insurance claims submissions covering a six-month period to determine
if claims are timely submitted to HUD-FHA.
CAUSE: Review by HUD's contractor of the company's HUD-FHA insurance
claim submissions citing violations of HUD-FHA requirements including:
untimely submissions of insurance claims; and incorrect dates on claim
forms.
5. Carl I. Brown & Company; Kansas City, Missouri
ACTION: Settlement Agreement that includes payment to the Department of
$75,000; payment of a civil money penalty in the amount of $30,000; and
corrective action by the company to assure compliance with HUD-FHA
requirements.
CAUSE: Review by HUD's contractor of the company's single family
mortgage insurance claims submissions and loan servicing procedures
that disclosed violations of HUD-FHA requirements. The violations
included: overpayment by HUD of expenses paid; payment for preservation
and protection work not performed; overpayment for tax refunds;
improperly prepared claims submissions; inadequate quality control;
improper disposition of mortgagor escrow surpluses; and inadequate
servicing of defaulted loans.
Dated: November 29, 1995.
Nicolas P. Retsinas,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 95-29805 Filed 12-6-95; 8:45 am]
BILLING CODE 4210-27-P