[Federal Register Volume 61, Number 159 (Thursday, August 15, 1996)]
[Notices]
[Pages 42436-42439]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20793]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Assistant Secretary for Housing-Federal Housing
Commissioner
[Docket No. FR-4051-N-02]
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 Program Compliance, 451 Seventh Street, S.W.,
Washington, D.C. 20410, telephone (202) 708-1515. (This is not a toll-
free numbers.) A telecommunications device for hearing- and speech-
impaired individuals (TTY) is available at 1-800-877-8339 (Federal
Information Relay Service).
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 April 1, 1996 through June 30, 1996.
1. Southland Financial, Inc.; Fullerton, California
Action: Withdrawal of HUD-FHA mortgagee approval and proposed civil
money penalty in the amount of $50,000.
Cause: A HUD monitoring review that disclosed violations of HUD-FHA
requirements including: failure to timely remit to HUD-FHA Up-Front
Mortgage Insurance Premiums (UFMIPs) and to remit late charges and
interest penalties; failure to timely submit loans for mortgage
insurance endorsement; and failure to maintain an adequate Quality
Control Plan.
2. Stevens Financial Corporation; Brea, California
Action: Withdrawal of HUD-FHA mortgagee approval and proposed civil
money penalty of $50,000.
Cause: A HUD monitoring review that disclosed violations of HUD-FHA
requirements including: failure to timely remit Up-Front Mortgage
Insurance Premiums (UFMIPs) to HUD-FHA and to remit late charges and
interest penalties; improperly using current UFMIP funds to pay the
UFMIPs for older loans where the UFMIP has not been remitted to HUD-
FHA; commingling borrowers' UFMIPs with company operating funds;
failure to timely submit loans to HUD-FHA for mortgage insurance
endorsement; submitting alleged false information to HUD-FHA to obtain
branch office approvals; paying compensation to lenders not approved by
HUD-FHA, and to HUD-FHA approved loan correspondents not sponsored by
the company for the origination of HUD-FHA insured mortgages; and
failure to implement and maintain an adequate Quality Control Plan.
[[Page 42437]]
3. Renet Financial Corporation; Orange, California
Action: Withdrawal of HUD-FHA mortgagee approval and proposed civil
money penalty in the amount of $50,000.
Cause: A HUD monitoring review that disclosed violations of HUD-FHA
requirements that included: failure to timely remit Up-Front Mortgage
Insurance Premiums (UFMIPs) to HUD-FHA and to remit late charges and
interest penalties; improperly using current UFMIP funds to pay the
UFMIPs for older loans where the UFMIP has not been remitted to HUD-
FHA; failure to timely submit loans to HUD-FHA for mortgage insurance
endorsement; using borrowers' escrow funds to close HUD-FHA loans;
failure to implement and maintain an adequate Quality Control Plan for
the origination of HUD-FHA insured mortgages; failure to comply with
HUD-FHA reporting requirements under the Home Mortgage Disclosure Act
(HMDA); failure to report to HUD-FHA a loss of more than 20 percent of
net worth; and failure to document borrowers' source of funds to close
HUD-FHA insured mortgages.
4. B&M Mortgage Corporation; College Park, Georgia
Action: Proposed withdrawal of HUD-FHA mortgagee approval.
Cause: A HUD monitoring review that disclosed violations of HUD-FHA
requirements that included: failure to document borrowers' source of
funds used for downpayment and/or closing costs; failure to document
discrepancies in a HUD-FHA insured loan transaction; charging
unallowable fees to borrowers; failure to maintain required loan
documents; failure to implement and maintain an adequate Quality
Control Plan; and failure to respond to a findings letter issued by the
Quality Assurance Division.
5. Alliance Mortgage Corporation; Villa Park, Illinois
Action: Settlement Agreement that includes indemnification to the
Department for any claim losses in connection with six improperly
originated loans; and corrective action to assure compliance with HUD-
FHA requirements.
Cause: A HUD Office of Inspector General audit report that
disclosed violations of HUD-FHA requirements including: failure to
conduct face-to-face interviews with mortgagors; failure to properly
verify borrowers' gift funds; failure to properly verify a borrower's
income; understating a borrower's liabilities; and failure to maintain
an adequate Quality Control Plan.
6. Statewide Mortgage Company; Birmingham, Alabama
Action: Settlement Agreement that includes: indemnification to the
Department for any claim losses in connection with 31 improperly
originated HUD-FHA insured Title I property improvement loans;
corrective action to assure compliance with HUD-FHA requirements; and a
future review by an independent CPA to determining compliance by the
company's Bellevue, Washington branch office with HUD-FHA Title I
program requirements.
Cause: A HUD monitoring review that disclosed violations of HUD-FHA
Title I program requirements including: failure to conduct face-to-face
or telephone interviews with borrowers; approving loan applicants based
upon alleged false leases; failure to present Title I loan proceeds
directly to borrowers; alleged falsified property inspection reports;
failure to establish required equity; and reporting loans for HUD-FHA
insurance that contained inaccurate information.
7. Home Bank F.S.B.; Cleveland, Ohio
Action: Settlement Agreement that provides for reimbursement to the
Department for losses incurred with respect to 21 improperly originated
HUD-FHA insured mortgages during 1990 and 1991.
Cause: Violations of HUD-FHA requirements by a former employee that
included failure to perform face-to-face interviews with borrowers; and
submission of false information to the Department.
8. Amerifirst Mortgage Corporation; Hempstead, New York
Action: Settlement Agreement that includes indemnification to the
Department for any claim losses in connection with 13 improperly
originated HUD-FHA insured mortgages; and payment to the Department in
the amount of $52,000.
Cause: A HUD monitoring review that disclosed violations of HUD-FHA
requirements including: failure to implement an adequate Quality
Control Plan; failure to adequately document a borrower's source of
funds; overinsured mortgages; exceeding appropriate loan-to-value
ratios on a cash out refinance; permitting unallowable credits to the
mortgagor at closing; failure to conform to the maximum construction
rehabilitation period; approving borrowers with poor credit; improper
transfer of GNMA escrow funds; failure to properly calculate the
mortgagor's effective income; and closing loans with duplication of
charges.
9. Sun West Mortgage Company; Cerritos, California
Action: Settlement Agreement that includes: indemnification to the
Department for any claim loss in connection with an improperly
originated HUD-FHA insured mortgage; payment to the Department of a
civil money penalty in the amount of $6,500; and corrective action to
assure compliance with HUD-FHA requirements.
Cause: A HUD monitoring review that disclosed violations of HUD-FHA
requirements including: use of alleged false information to originate a
HUD-FHA insured mortgage; misrepresenting the Title I property
improvement and single family insurance programs; and using false and
misleading advertising in the company's HUD-FHA Title I program
activities.
10. Provident Mortgage Corporation; Visalia, California
Action: Settlement Agreement that includes indemnification to the
Department for its claim loss in connection with one improperly
originated HUD-FHA insured mortgage; and corrective action to assure
compliance with HUD-FHA requirements.
Cause: A HUD monitoring review that cited the company for failure
to determine a borrower's source of funds used for downpayment; and
failure to cooperate with a monitoring review of the company's HUD-FHA
insured mortgage activities.
11. Camelview Financial Services; Scottsdale, Arizona
Action: Settlement Agreement that includes; payment of a civil
money penalty to the Department in the amount of $2,000; and corrective
action to assure compliance with HUD-FHA requirements.
Cause: Use of false and misleading advertising in connection with
the HUD-FHA Title I program.
12. Occidental Mortgage Corporation; Covina, California
Action: Settlement Agreement that includes: payment of a civil
money penalty to the Department in the amount of $2,000; and corrective
action to assure compliance with HUD-FHA Title I program requirements.
Cause: Use of false and misleading advertising in connection with
the HUD-FHA Title I program.
13. Suncoast Lenders, Inc.; Upland, California
Action: Settlement Agreement that includes: payment of a civil
money
[[Page 42438]]
penalty to the Department in the amount of $2,000; and corrective
action to assure compliance with HUD-FHA requirements.
Cause: Use of false and misleading advertising in connection with
the HUD-FHA Title I program.
14. Nova Funding Group; Encino, California
Action: Settlement Agreement that includes: payment to the
Department of a civil money penalty in the amount of $2,000; and
corrective action to assure compliance with HUD-FHA requirements.
Cause: Use of false and misleading advertising in connection with
the HUD-FHA Title I program.
15. San Diego Funding d/b/a SD Funding; San Diego, California
Action: Settlement Agreement that includes: payment of a civil
money penalty to the Department in the amount of $2,000; and corrective
action to assure compliance with HUD-FHA requirements.
Cause: Use of false and misleading advertising in connection with
the HUD-FHA Title I program.
16. United Mortgagee, Inc.; Virginia Beach, Virginia
Action: Settlement Agreement that includes: payment to the
Department in the amount of $2,000; and corrective action to assure
compliance with HUD-FHA requirements.
Cause: Use of false and misleading advertising in connection with
the HUD-FHA Title I program.
17. Padre Financial Services Corporation; San Diego, California
Action: Proposed Settlement Agreement that includes: payment to the
Department of a civil money penalty in the amount of $2,000; and
corrective action to assure compliance with HUD-FHA requirements.
Cause: Use of false and misleading advertising in connection with
the HUD-FHA Title I program.
18. Real Estate Plus Mortgage; Redondo Beach, California
Action: Proposed Settlement Agreement that includes: payment to the
Department of a civil money penalty in the amount of $2,000; and
corrective action to assure compliance with HUD-FHA requirements.
Cause: Use of false and misleading advertising in connection with
the HUD-FHA Title I program.
19. California Federal Bank; Los Angeles, California
Action: Letter of Reprimand
Cause: Use of false and misleading advertising in connection with
the HUD-FHA Title I program.
20. Mortgage Lenders Acceptance Corporation; Laguna Hills, California
Action: Letter of Reprimand
Cause: Use of false and misleading advertising in connection with
the HUD-FHA Title I program.
21. Mortgagees and Title I Lenders That Failed To Comply With HUD-FHA
Requirements for the Submission of an Annual Audited Financial
Statement and/or Payment of the Annual Recertification Fee
Action: Withdrawal of HUD-FHA mortgagee approval and Title I lender
approval.
Cause: Failure to submit to the Department the required annual
audited financial statement and/or remit the required annual
recertification fee.
Mortgagees Withdrawn: Citizens Industrial Bank, Mobile, AL; First
Coastal Funding, Inc., Mobile, AL; Prudential Mortgage Service Co.,
Santa Ana, CA; Mother Lode Mortgage, Inc., Auburn, CA; California
Mortgage Group, Inc., Garden Grove, CA; Mortgage Line, Inc., Walnut
Creek, CA; Villa Mortgage Corp., Diamond Bar, CA; Bramalea Mortgage,
Inc., Newport Beach, CA; SC Funding Corp., Irvine, CA; GM Funding
Services, Inc., Inglewood, CA; Brookside Financial, Inc., Redlands, CA;
First United Federal Mtg. Inc, Phelan, CA; McCollum Funding, Redding,
CA; All Homeowners Mortgage Corp., Lake Forest, CA; FIC Corporation,
Stanton, CA; Apco Financial Corp., Carlsbad, CA; Vintage Brokers, Inc.,
Fremont, CA; Almerica Funding, Sacramento, CA; New Freedom Financial
Enterprise, Simi Valley, CA; Del Mar Funding, San Diego, CA; Executive
Financial Invest, Inc., Fremont, CA; Cable Mortgage, Inc., Vacaville,
CA; American Mortgage Network, Inc., Richmond, CA; Santa Clara
Financial Corp., San Jose, CA; Williams Mortgage Group, Inc., Garden
Grove, CA; California Patriot, Inc., Orangevale, CA; FCB Enterprises,
Inc., Northridge, CA; Earl T. Combs, Inc., Turlock, CA; Blue Star
Mortgage, Inc., Riverside, CA; Bryce Funding Group, Inc., Rancho
Cucamonga, CA; EFC Mortgage Corp., Newport Beach, CA; Cook and Cook
Mortgage, Inc., Cameron Park, CA; C and M McGee, Inc., Rancho Cordova,
CA; United Mortgage and Investment, Boulder, CO; Denver Mortgage
Funding, Denver, CO; MacWest Mortgage Corporation, Denver, CO;
Residential Mortgage Association, Inc., Miami, FL; Independent Mortgage
Servicing Corp., Winter Park, FL; Gwinnett Federal Bank FSB,
Lawrenceville, GA; Kipling Mortgage Group, Inc., Atlanta, GA; Great
American Lending Group, Inc., Atlanta, GA; American Independent
Mortgage, Atlanta, GA; Biggs Penn Mortgage, Atlanta, GA; Pacific First
Mortgage, Inc., Aiea, HI, T-Tyme, Inc., Boise, ID; Deerfield Federal
Savings; Deerfield, IL; Five Star Financial Services, Schaumburg, IL; A
Mortgage Company, Frederick, MD; Builder Financial Services of
Baltimore, LLC, Columbia, MD; Atlantic Mortgage Corporation, East
Detroit, MI; Farmington Mortgage Company, Farmington Hill, MI; Home
Financial Center Mortgage Corp., Bloomington, MN; ABI Mortgage Corp.,
Saint Paul, MN; Clayton Mortgage Assoc, Inc., Clayton, MO; American
Financial Group, Inc., Charlotte, NC; First Realty Fin Ser of NJ, North
Brunswick, NJ; American National Funding Corp., Las Vegas, NV; Four
Star Financial Ser-Nevada, Las Vegas, NV; James Financial Services
Corp., Las Vegas, NV; Construction Management Group, Harrison, NY;
Washington Financial Corp., University Heights, OH; Brumbaugh and
Fulton Company, Tulsa, OK; Central Savings Bank PA SA, Lititz, PA;
Miltex Mortgage, Inc., Austin, TX; Cowest Mortgage Corporation, Dallas,
TX; First Home Mortgage, Inc., Houston, TX; American Bankers Mortgage
Corp., Denton, TX; Tejas Mortgage Investors, Inc., Wichita Falls, TX;
Texas Financial Mortgage Corp., Houston, TX; American Financial
Mortgage, Dallas, TX; American Eagle Mortgage, Provo, UT; Atherton
Mortgage-Utah, Inc., Salt Lake City, UT; Fairland Mortgage Co. Inc.,
Annandale, VA; Union Financial Corp., McLean, VA; First Dominion
Mortgage Corp., Annandale, VA; America's Lending Network, Inc.,
Fairfax, VA; Jameson Group, Inc., Woodinville, WA; National Home Loan
Mortgage, Inc., Kirkland, WA; Forest Park Mortgage Co., Seattle, WA;
Windsor Mortgage, Seattle, WA; Village Oaks Financial Group, Bullhead
City, AZ; First Preferred Federal Financial Serv, Downey, CA; Sierra
Cal Investments, Sacramento, CA; Rio Vista Mortgage Corporation, San
Diego, CA; Nationwide Realty Services, Inc., San Diego, CA; Diablo
Valley Properties, Inc., Walnut Creek, CA; Pacific West Bancorp Mtg.
Corp., Burbank, CA; Trans Capital Mortgage, Inc., Los Angeles, CA;
Coast Capital, Torrance, CA; World Wide Mortgage, San Diego, CA; DJS,
Inc., Westlake Village, CA; RL Mortgage, Inc., Los Angeles, CA; Prime
Financial Mortgage, Ventura, CA; RKL Mortgage Service, Inc., Costa
Mesa, CA; Equity One Lenders Service, Inc., Placentia, CA; Nations One
Mortgage Corp.,
[[Page 42439]]
Englewood, CO; East Coast Mtg and Invest Co., Miami, FL; Mortgage
Bankers Group, Inc., Miami, FL; Interlink Financial Corp., Orlando, FL;
American Mortgage Express, Inc., Miami, FL; Shorewood Financial, Inc.,
Fort Lauderdale, FL; Fidelity Loan Services, Inc., Arlington Heights,
IL; Americas Mortgage Servicing, Inc., Frederick, MD; Developers
Service Corporation, Troy, MI; Alliance Lending Group, Inc., Charlotte,
NC; Foremost Mortgage Brokerage, Inc., Shrewsbury, NJ; Apple National
Mortgage, Springfield, NJ; MCS Mortgage Company, Reno, NV; T and E
Mortgage Company, San Antonio, TX; Primesource Mortgage, El Paso, TX;
Spectrum Financial Corp., Silverdale, WA; Mortgage Express
Incorporated, Green Bay, WI; First Savings Bank Alabama FA, Hamilton,
AL; Rancho Vista National Bank, Vista, CA; Irvinecity Bank FSB, Irvine,
CA; United California Savings Bank, Santa Ana, CA; International
Savings Bank, San Diego, CA; Modern Federal Savings Loan Assn, Grand
Junction, CO; Shelton Savings Bank, Shelton, CT; Lincoln Savings and
Loan Assn, Miami, FL; Amtrust Bank, Boca Raton, FL; First Federal
Savings Bank, Brunswick, GA; South Georgia FSB, Glennville, GA;
Development Bank, American Samoa, HI; King City Federal Savings Bank,
Mount Vernon, IL; Central Federal Savings ALA, Cicero, IL; Loomis
Federal Savings and Loan, Chicago, IL; First Federal Savings Bank FSB,
Rockford, IL; First of Kansas Banking Savings, Hays, KS; Franklin
Savings Association, Ottawa, KS; Peoples Bank and Trust Co, Owenton,
KY; Kentucky Enterprise Bank FSB, Newport, KY; First Federal Bank for
Savings N KY, Covington, KY; Farmers National Bank and Trust Co,
Williamsburg, KY; Paul Revere Life Insurance Company, Worcester, MA;
Standard Federal Savings Association, Frederick, MD; Reisterstown
Federal Sav Bk, Reisterstown, MD; Old Court Savings and Loan, Inc.,
Baltimore, MD; Charter Financial Corporation, Livonia, MI; AAA Mortgage
Corporation, Bingham Farms, MI; First Security Bank, Byron, MN;
Guaranty Federal Savings Bank, Springfield, MO; Cleveland Federal Bank,
Shelby, NC; Omnibank FSB, Salisbury, NC; Home Federal Savings Bank,
Kings Mountain, NC; Southtrust Bank Central Carolina, Concord, NC; CFX
Bank, Keene, NH; New Dartmouth Bank, Hooksett, NH; Crestmont Federal
Savings ALA, Edison, NJ; Bay Ridge Federal Savings Bank, Brooklyn, NY;
United Northern FSB, Watertown, NY; Mid-Hudson Savings Bank FSB,
Fishkill, NY; Hamilton Federal Savings ALA, Brooklyn, NY; Stillwater
Savings and Loan Assn, Stillwater, OK; Sharon Savings Bank, Darby, PA;
Home Federal Savings Bank SC, Rock Hill, SC; Peoples Federal Savings
and Loan Assoc, Conway, SC; National First Lenders Corp., Knoxville,
TN; Federal Savings Bank FA, Dumas, TX; Village Savings Assn, Houston,
TX; Southwestern Savings and Loan Assn, El Paso, TX; Jefferson Savings
and Loan, Warrenton, VA; Tidemark Bank for Savings FSB, Newport News,
VA; University Savings Bank, Seattle, WA; Summit Savings Assn,
Bellevue, WA; First National Bank, Baldwin, WI.
Title I Lenders Withdrawn: CFC Mortgage Corporation, Lancaster, CA;
Warner Oaks Financial Corp., Woodland Hills, CA; Renet Financial
Corporation, Anaheim, CA; American Fidelity Mortgage, San Diego, CA;
FIC Corporation, Stanton, CA; Heartland Mortgage Corporation, Atlanta,
GA; Loans, Inc., Honolulu, HI; Antilles Finance Corp., Carolina, PR;
Rio Vista Mortgage Corp., San Diego, CA; Del Mar Funding, Inc., San
Diego, CA; Southland Mortgage Lending Corp., Marietta, GA; Plaza
Mortgage, Inc., Medford, OR; Union Financial Corporation, McLean, VA;
Illinois Guarantee Savings Bk, Effingham, IL; Bankers Thrift and Loan
Assn, Leawood, KS.
Dated: August 6, 1996.
Stephanie A. Smith,
General Deputy Assistant Secretary for Housing-Federal Housing
Commissioner.
[FR Doc. 96-20793 Filed 8-14-96; 8:45 am]
BILLING CODE 4210-27-P