[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