Federal Register, Volume 64 Issue 182 (Tuesday, September 21, 1999)

[Federal Register Volume 64, Number 182 (Tuesday, September 21, 1999)]
[Notices]
[Pages 51136-51138]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24636]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4513-N-02]

Credit Watch Termination Initiative

AGENCY: Office of Assistant Secretary for Housing-Federal Housing
Commissioner, HUD.

ACTION: Notice.

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SUMMARY: This notice advises of the cause and effect of termination of
Origination Approval Agreements taken by HUD's Federal Housing
Administration against HUD-approved mortgagees through its Credit Watch
Termination Initiative. This notice includes a list of mortgagees which
have had their Origination Approval Agreements (Agreements) terminated.

FOR FURTHER INFORMATION CONTACT: The Quality Assurance Division, Office
of Housing, Department of Housing and Urban Development, 451 Seventh
St. SW, Room B133-P3214, Washington, DC 20410; telephone (202) 708-2830
(This is not a toll free number). Persons with hearing or speech
impairments may access that number via TTY by calling the Federal
Information Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION: HUD has the authority to address
deficiencies in the performance of lenders' loans as provided in the
HUD mortgagee approval regulations at 24 CFR 202.3. On May 17, 1999 (64
FR 26769), HUD published a notice on its procedures for terminating
origination approval agreements with FHA lenders and placement of FHA
lenders on Credit Watch status (an evaluation period). In the May 17,
1999 notice, HUD advised that it would publish in the Federal Register
a list of mortgagees which have had their Origination Approval
Agreements terminated.

Termination of Origination Approval Agreement

Approval of a mortgagee by HUD/FHA to participate in FHA mortgage
insurance programs includes an Agreement between HUD and the mortgagee.
Under the Agreement, the mortgagee is authorized to originate single
family mortgage loans and submit them to FHA for insurance endorsement.
The Agreement may be terminated on the basis of poor performance of
FHA-insured mortgage loans originated by the mortgagee. The Termination
of a mortgagee's Agreement is separate and apart from any action taken
by HUD's Mortgagee Review Board under HUD's regulations at 24 CFR part
25.

Cause

HUD's regulations permit HUD to terminate the Agreement with any
mortgagee having a default and claim rate for loans endorsed within the
preceding 24 months that exceeds 200 percent of the default and claim
rate within the geographic area served by a HUD field office, and also
exceeds the national default and claim rate. For the first review
period, HUD is only terminating the Agreement of mortgagees whose
default and claim rate exceeds both the national rate and 300 percent
of the field office rate.

Effect

Termination of the Agreement precludes that branch(s) of the
mortgagee from originating FHA-insured single family mortgages within
the area of the HUD field office(s) listed in this notice. Mortgagees
authorized to purchase, hold, or service FHA insured mortgages may
continue to do so.
Loans that closed or were approved before the Termination became
effective may be submitted for insurance endorsement. Approved loans
are (1) those already underwritten and approved by a Direct Endorsement
(DE) underwriter employed by an unconditionally approved DE lender and
(2) cases covered by a firm commitment issued by HUD. Cases at earlier
stages of processing cannot be submitted for insurance by the
terminated branch; however, they may be transferred for completion of
processing and underwriting to another mortgagee or branch authorized
to originate FHA insured mortgages in that area. Mortgagees are
obligated to continue to pay existing insurance premiums and meet all
other obligations associated with insured mortgages.
A terminated mortgagee may request to have its authority to
originate FHA

[[Page 51137]]

loans reinstated no earlier that six months after the effective date of
the Termination. The request, addressed to the Director, Office of
Lender Activities and Program Compliance, should describe any actions
taken (e.g., changes in operations and/or personnel) to eliminate the
cause(s) of the poor loan performance that led to the Termination.

Action

The following mortgagees have had their Agreements terminated by
HUD:

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Termination
Mortgagee name Mortgagee branch Mortgagee branch Mortgagee branch HUD office effective Home ownership centers
street address city state jurisdictions date
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American Choice Mtg. Corp....... 7855 NW 12th St. Miami............. FL................ Coral Gables, FL.. 08/01/1999 Atlanta.
Ste 103.
Amerimort Financial Group dba/ 13200 Crossroads City of Industry.. CA................ Los Angeles, CA... 08/01/1999 Santa Ana.
Citimortgage. Pkwy N 200.
Cameron Mtg. Co................. 8563-2 Argyle Jacksonville...... FL................ Jacksonville, FL.. 09/15/1999 Atlanta.
Business Loop.
Capitol Mtg. Bankers............ All Branches....... .................. .................. Washington, DC.... 09/15/1999 Philadelphia.
Capitol Mtg. Bankers............ All Branches....... .................. .................. Baltimore, MD..... 09/15/1999 Philadelphia.
Capitol Mtg. Bankers............ 901 Dulaney Valley Towson............ MD................ Richmond, VA...... 09/15/1999 Philadelphia.
Rd.
Citizens First Mtg.............. 2301 Lee Rd........ Winter Park....... FL................ Orlando, FL....... 09/15/1999 Atlanta.
CTX Mtg. Co..................... 11108-10 West West Allis........ WI................ Milwaukee, WI..... 09/15/1999 Denver.
National Avenue.
Dalma Corp. dba/Alpha Mtg. 1745 Old Spring Atlanta........... GA................ Atlanta, GA....... 09/15/1999 Atlanta.
Bankers. House Lane 400.
Eastern Mtg. Corp............... 8380 Baymeadows Rd Jacksonville...... FL................ Jacksonville, FL.. 09/15/1999 Atlanta.
Ste 9.
First National Funding Group.... 2690 E Garvey West Covina....... CA................ Santa Ana, CA..... 09/15/1999 Santa Ana.
Avenue S.
Four Star Mtg. Ltd.............. 1349 Empire Central Dallas............ TX................ Dallas, TX........ 09/15/1999 Denver.
Ste 404.
Friendly Hills Mtg.............. 7028 Greenleaf Ave Waittier.......... CA................ Santa Ana, CA..... 09/15/1999 Santa Ana.
Ste M.
Harbor Financial Mtg............ 5350 South Staples Corpus Christi.... TX................ San Antonio, TX... 08/01/1999 Denver.
Ste 103.
Harbor Financial Mtg............ 5024 Campbell Blvd Baltimore......... MD................ Baltimore, MD..... 08/01/1999 Philadelphia.
Ste H.
Home Mtg. Center................ 3227 Duke St....... Alexandria........ VA................ Washington, DC.... 09/15/1999 Philadelphia.
Mirage Financial Services....... 3565 NE 163rd St... North Miami Beach. FL................ Coral Gables, FL.. 09/15/1999 Atlanta.
Mortgage Acceptance Corp........ 10 McKinley St..... Closter........... NJ................ Newark, NJ........ 08/01/1999 Philadelphia.
Mortgage Acceptance Corp........ 10 McKinley St..... Closter........... NJ................ New York, NY...... 08/01/1999 Philadelphia.
Mortgage Capital Resources Corp. 3435 Wilshire Blvd Los Angeles....... CA................ Los Angeles, CA... 09/15/1999 Santa Ana.
Ste 380.
Mortgage Lending of America..... 110 Walt Whitman Rd Huntington Station NY................ New York, NY...... 09/15/1999 Philadelphia.
Ste 204.
Ober Financial Corp. dba/ 15329 Bonanza Rd Victorville....... CA................ Santa Ana, CA..... 09/15/1999 Santa Ana.
Combined Mtg. Ste D.
Plus Four Mtg................... 36358 Garfield Rd.. Clinton Twp....... MI................ Detroit, MI....... 09/15/1999 Philadelphia.
Presidential Mtg. Corp.......... 1210 32nd St. North Birmingham........ AL................ Birmingham, AL.... 09/15/1999 Atlanta.
Progressive Loan Funding........ 3030 Old Ranch Pkwy Seal Beach........ CA................ Los Angeles, CA... 09/15/1999 Santa Ana.
Ste 150.
RC Mtg. Inc..................... 8560 Vineyard Ave. Rancho Cucamonga.. CA................ Santa Ana, CA..... 09/15/1999 Santa Ana.
Ste 407.
RE Mtg. Group................... 8141 E Kaiser Blvd Anaheim Hills..... CA................ Los Angeles, CA... 09/15/1999 Santa Ana.
Ste 212.
RE Mtg. Group................... 10927 Downey Ave. Downey............ CA................ Los Angeles, CA... 09/15/1999 Santa Ana.
Ste A.
RLS Mtg. Inc. dba/Trinity Mtg... 309 E Rowland Ave.. Covina............ CA................ Los Angeles, CA... 09/15/1999 Santa Ana.
RLS Mtg. Inc. dba/Trinity Mtg... All Branches....... .................. .................. Santa Ana, CA..... 09/15/1999 Santa Ana.
RMS Inc. dba/Residential Lending 1421 Triad Center Saint Peters...... MO................ St. Louis, MO..... 09/15/1999 Denver.
Service Inc. Dr. Ste 102.
Sun America Mtg................. 750 Terrando Plaza Covina............ CA................ Santa Ana, CA..... 09/15/1999 Santa Ana.
Ste 14.
United California Mtg........... 12750 Center Court Cerritos.......... CA................ Los Angeles, CA... 09/15/1999 Santa Ana.
Dr. Ste 140.
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[[Page 51138]]

Dated: September 14, 1999.
William C. Apgar,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 99-24636 Filed 9-17-99; 10:59 am]
BILLING CODE 4210-27-P