[Federal Register Volume 69, Number 161 (Friday, August 20, 2004)]
[Notices]
[Pages 51699-51700]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-19057]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4513-N-17]
Credit Watch Termination Initiative
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This notice advises of the cause and effect of termination of
Origination Approval Agreements taken by the HUD's Federal Housing
Administration (FHA) against HUD-approved mortgagees through the FHA
Credit Watch Termination Initiative. This notice includes a list of
mortgagees which have had their Origination Approval Agreements
terminated.
FOR FURTHER INFORMATION CONTACT: The Quality Assurance Division, Office
of Housing, Department of Housing and Urban Development, 451 Seventh
Street, SW., Room B133-P3214, Washington, DC 20410-8000; telephone
(202) 708-2830 (this is not a toll free number). Persons with hearing
or speech impairments may access that number through 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 HUD's
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 Origination Approval Agreement (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 19th review
period, HUD is only terminating the Agreement of mortgagees whose
default and claim rate exceeds both the national rate and 200 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 apply for a new Origination Approval
Agreement if the mortgagee continues to be an approved mortgagee
meeting the requirements of 24 CFR 202.5, 202.6, 202.7, 202.8 or 202.10
and 202.12, if there has been no Origination Approval Agreement for at
least six months, and if the Secretary determines that the underlying
causes for termination have been remedied. To enable the Secretary to
ascertain whether the underlying causes for termination have been
remedied, a mortgagee applying for a new Origination Approval Agreement
must obtain an independent review of the terminated office's operations
as well as its mortgage production, specifically including the FHA-
insured mortgages cited in its termination notice. This independent
analysis shall identify the underlying cause for the mortgagee's high
default and claim rate. The review must be conducted and issued by an
independent Certified Public Accountant (CPA) qualified to perform
audits under Government Auditing Standards as provided by the General
Accounting Office. The mortgagee must also submit a written corrective
action plan to address each of the issues identified in the CPA's
report, along with evidence that the plan has been implemented. The
application for a new Agreement should be in the form of a letter,
accompanied by the CPA's report and corrective action plan. The request
should be sent to the Director, Office of Lender Activities and Program
Compliance, 451 Seventh Street, SW., Room B133-P3214, Washington, DC
20410-8000 or by courier to 490 L'Enfant Plaza, East, SW, Suite 3214,
Washington, DC 20024.
Action: The following mortgagees have had their Agreements
terminated by HUD:
[[Page 51700]]
----------------------------------------------------------------------------------------------------------------
Termination
Mortgagee name Mortgagee branch HUD office effective Home ownership
address jurisdictions date centers
----------------------------------------------------------------------------------------------------------------
Alliance Mortgage Banking Corp.. 1025 Old Country New York, NY...... 5/24/2004 Philadelphia.
Road, Westbury, NY
11590.
Alliance Mortgage Banking Corp.. 366 North Broadway, New York, NY...... 5/22/2004 Philadelphia.
Jericho, NY 11753.
American Lending Group Inc...... 4260 Shoreline Dr., St. Louis, MO..... 6/29/2004 Denver.
Ste. 185 Earth
City, MO 63045.
American Union Mortgage Inc..... 5250 S. Commerce Salt Lake City, UT 6/29/2004 Denver.
Dr., Ste. 101,
Murray, UT 84107.
America's Mortgage Resource Inc. 3317 N. I-10 New Orleans, LA... 6/29/2004 Denver.
Service Road,
Metairie, LA 70003.
Amerifirst Financial Corp....... 616 W. Centre Ave., Detroit, MI....... 6/29/2004 Philadelphia.
Portage, MI 49024.
Amerifirst Financial Corp....... 616 W. Centre Ave., Flint, MI......... 6/29/2004 Philadelphia.
Portage, MI 49024.
Approved Finanical Inc.......... 9400 W. Foster Chicago, IL....... 6/29/2004 Atlanta.
Ave., Ste. 211
Chicago, IL 60656.
Arcadia Mortgage Inc............ 802 East Winchester Salt Lake City, UT 6/29/2004 Denver.
100,
Murray, UT 84107.
CCSF Inc........................ 1050 E. Flamingo Las Vegas, NV..... 6/29/2004 Denver.
Rd., Ste. 237-N,
Las Vegas, NV
89119.
Choice One Mortgage Inc......... 11024N. 28th Drive, Phoenix, AZ....... 6/29/2004 Santa Ana.
Ste. 240, Phoenix,
AZ 85029.
Columbia National Inc........... 1111 West 22nd St., Chicago, IL....... 6/29/2004 Atlanta.
Ste. 225, Oak
Brook, IL 60523.
Community Mortgage Inc.......... 7290 Cherokee Oklahoma, OK...... 6/29/2004 Denver.
Plaza, Oklahoma
City, OK 73132.
Crossmann Mortgage Inc.......... 9202 N. Meridian Indianapolis, IN.. 7/1/2004 Atlanta.
St., Ste. 120,
Indianapolis, IN
46260.
First Service Mortgage Inc...... 3581 Main St., Atlanta, GA....... 6/29/2004 Atlanta.
College Park, GA
30337.
Gateway Funding Diversified Mtg. 300 Welsh Rd., Philadelphia, PA.. 6/29/2004 Philadelphia.
Bldg. 5, Horsham,
PA 19044.
Global Financial Services....... 172 West St., Baltimore, MD..... 5/22/2004 Philadelphia.
Annapolis, MD
21401.
Loanamerica Home Mtg. Inc....... 9494 Southwest Houston, TX....... 6/29/2004 Denver.
Freeway, Ste. 450,
Houston, TX 77074.
Perimeter Mortgage Funding...... 1770 Indian Trail Birmingham, AL.... 6/29/2004 Atlanta.
Rd., Ste. 400,
Norcross, GA 30093.
Premier Mortgage Services....... 1930 East Fort Salt Lake City, UT 6/29/2004 Denver.
Union Blvd., Salt
Lake City, UT
84121.
Professional Lending LCC........ 3523 Walton Way Atlanta, GA....... 6/29/2004 Atlanta.
Ext., Augusta, GA
30909.
Southwest Funding, L.P. 8848 Greenville Dallas, TX........ 6/29/2004 Denver.
previously known as Texas Ave., Dallas, TX
Residential Mortgage LP. 75243.
Total Mortgage Corp............. 32900 Five Mile, Detroit, MI....... 6/29/2004 Philadelphia.
Ste. 100 Livonia,
MI 48154.
US Mortgage Corp................ 19 D Chapin Road, Newark, NJ........ 6/29/2004 Philadelphia.
Pine Brook, NJ
07058.
World Wide Financial Services... 26500 Northwestern Detroit, MI....... 6/29/2004 Philadelphia.
Hwy., Fl. 4,
Southfield, MI
48076.
----------------------------------------------------------------------------------------------------------------
Dated: August 12, 2004.
Sean Cassidy,
General Deputy, Assistant Secretary for Housing.
[FR Doc. 04-19057 Filed 8-19-04; 8:45 am]
BILLING CODE 4210-27-P