[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