[Federal Register Volume 75, Number 156 (Friday, August 13, 2010)]
[Notices]
[Pages 49510-49512]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-20068]



[[Page 49510]]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5411-N-02]


Credit Watch Termination Initiative

AGENCY: Office of the 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 (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 HUD 
published a notice (64 FR 26769), 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 42nd review 
period, HUD is 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 
Government Accountability 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 20024-8000.
    Action: The following mortgagees have had their Origination 
Agreements terminated by HUD:

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                               Mortgagee branch        HUD office          Termination
        Mortgagee name              address          jurisdictions        effective date   Homeownership centers
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1st Continental Mortgage, Inc  2691 E. Oakland   Orlando..............          4/28/2010  Atlanta
                                Park Blvd,
                                Suite 203, Fort
                                Lauderdale, FL
                                3306.
1st Continental Mortgage, Inc  2691 E. Oakland   Jacksonville.........          4/28/2010  Atlanta
                                Park Blvd,
                                Suite 203, Fort
                                Lauderdale, FL
                                3306.
1st Continental Mortgage, Inc  2691 E. Oakland   Birmingham...........          4/28/2010  Atlanta
                                Park Blvd,
                                Suite 203, Fort
                                Lauderdale, FL
                                3306.
Allied Home Mortgage Capital   6110 Pinemont     Newark...............           4/9/2010  Denver
 Corp.                          Drive, Suite
                                215, Houston,
                                TX 77092.
Allied Home Mortgage Capital   6110 Pinemont     Washington, DC.......           4/9/2010  Philadelphia
 Corp.                          Drive, Suite
                                215, Houston,
                                TX 77092.
Americare Investment Group,    901 W. Bardin     Dallas...............          2/18/2010  Denver
 Inc. d/b/a Premier Capital     Road, Suite
 Lending.                       200, Arlington,
                                TX 76017.

[[Page 49511]]

 
Ameristar Mortgage &           2468 Old          Birmingham...........           4/9/2010  Denver
 Financial Services, Inc.       Springville
                                Road,
                                Birmingham, AL
                                35215.
Community West Mortgage, LLC.  3360 South        Denver...............          2/18/2010  Denver
                                Wadsworth
                                Blvd.,
                                Lakewood, CO
                                80227.
Consumers Real Estate Finance  888 E. Las Olas   Cleveland............          11/4/2009  Santa Ana
 Company.                       Blvd., Suite
                                506, Ft.
                                Lauderdale, FL
                                33301.
D and R Mortgage Corp. d/b/a   29870 Middlebelt  Flint................           4/9/2010  Philadelphia
 Metro Finance.                 Road, Suite
                                100, Farmington
                                Hills, MI 48334.
D and R Mortgage Corp. d/b/a   29870 Middlebelt  Grand Rapids.........           4/9/2010  Philadelphia
 Metro Finance.                 Road, Suite
                                100, Farmington
                                Hills, MI 48334.
D and R Mortgage Corp. d/b/a   29870 Middlebelt  Detroit..............           4/9/2010  Philadelphia
 Metro Finance.                 Road, Suite
                                100, Farmington
                                Hills, MI 48334.
D and R Mortgage Corp. d/b/a   29870 Middlebelt  Greensboro...........           4/9/2010  Atlanta
 Metro Finance.                 Road, Suite
                                100, Farmington
                                Hills, MI 48334.
Dell Franklin Financial, LLC.  8334 Veterans     Baltimore............           4/9/2010  Philadelphia
                                Highway, Suite
                                1,
                                Millersville,
                                MD 21108.
Essential Mortgage, Inc......  1701 48th         Des Moines...........          4/30/2010  Denver
                                Street, Suite
                                110, West Des
                                Moines, IA
                                50266.
First Mortgage Corp..........  3230 Fallow       Fresno...............          2/18/2010  Santa Ana
                                Field Drive,
                                Diamond Bar, CA
                                91765.
First Ohio Banc and Lending,   6100 Rockside     Richmond.............          4/30/2010  Philadelphia
 Inc.                           Woods Blvd,
                                Suite 1,
                                Independence,
                                OH 44313.
Franklin First Financial,      445 Broadhollow   Newark...............           4/9/2010  Philadelphia
 Ltd. d/b/a President First     Road, Suite
 Mortgage Bankers.              215, Melville,
                                NY 11747.
Franklin First Financial,      445 Broadhollow   Camden...............           4/9/2010  Philadelphia
 Ltd. d/b/a President First     Road, Suite
 Mortgage Bankers.              215, Melville,
                                NY 11747.
Gateway Funding Diversified    300 Welsh Road,   Camden...............          2/18/2010  Philadelphia
 Mtg. SRVS LP.                  Building 5,
                                Horsham, PA
                                19044.
Gold Star Home Mortgage, LLC.  3007 North Belt   Kansas City..........          2/18/2010  Denver
                                Highway, Suite
                                K, Saint
                                Joseph, MO
                                64506.
Group Two Thousand Real        8010 Haven        Santa Ana............           4/9/2010  Santa Ana
 Estate Services d/b/a Empire   Avenue, Rancho
 Financial.                     Cucamonga, CA
                                91730.
Interlinc Mortgage, Inc......  19221 Interstate  San Antonio..........          4/30/2010  Denver
                                45, Suite 210,
                                Conroe, TX
                                77385.
Jagle and Associates, LLC....  900 N. Federal    Miami................          2/18/2010  Atlanta
                                Highway, Suite
                                240, Boca
                                Raton, FL 33432.
Loanmans Mortgage Store, LLC   602 S. Marina     Omaha................          4/23/2010  Denver
 d/b/a Hamilton Lending.        Drive, Gilbert,
                                AZ 85233.
Morrison Capital Corporation,  251 S.W. Noel     Kansas City..........          4/30/2010  Denver
 Inc.                           Street, Lees
                                Summit, MO
                                64063.
Neighborhood Funding, Inc....  8910 N. Dale      Atlanta..............          2/18/2010  Atlanta
                                Mabry Highway,
                                Suite 18,
                                Tampa, FL 33614.
Newport Shores Mortgage, Inc.  1526 York Road,   Greensboro...........          2/18/2010  Atlanta
                                Lutherville
                                Timonium, MD
                                21093.
Paraiso, LLC.................  5505 Roswell      Atlanta..............          2/18/2010  Atlanta
                                Road, NE.,
                                Suite 250,
                                Atlanta, GA
                                30342.
Pinnacle Mortgage Funding,     250 E. 96th,      Indianapolis.........          2/18/2010  Denver
 LLC.                           Suite 125,
                                Indianapolis,
                                IN 46240.
Premium Capital Funding, LLC   125 Jericho       Jacksonville.........          2/18/2010  Atlanta
 d/b/a Topdot Mortgage.         Turnpike, Suite
                                400, Jericho,
                                NY 11753-1030.
Premium Capital Funding, LLC   125 Jericho       Atlanta..............          2/18/2010  Atlanta
 d/b/a Topdot Mortgage.         Turnpike, Suite
                                400, Jericho,
                                NY 11753-1030.
Premium Capital Funding, LLC   125 Jericho       Baltimore............          2/18/2010  Philadelphia
 d/b/a Topdot Mortgage.         Turnpike, Suite
                                400, Jericho,
                                NY 11753-1030.
Premium Capital Funding, LLC   125 Jericho       Richmond.............          2/18/2010  Philadelphia
 d/b/a Topdot Mortgage.         Turnpike, Suite
                                400, Jericho,
                                NY 11753-1030.
Republic State Mortgage......  2715 Bissonnet    Dallas...............          4/30/2010  Denver
                                Street, Suite
                                102, Houston,
                                TX 77005.
Tamayo Financial Services,     16123 La Grange   Chicago..............          4/30/2010  Atlanta
 Inc.                           Road, Orland
                                Park, IL.
The First Fidelity Mortgage    9607 Belair       Columbia.............          2/18/2010  Atlanta
 Group d/b/a First Fidelity     Road,
 Mortgage.                      Baltimore, MD
                                21236.
The First Fidelity Mortgage    9607 Belair       Greensboro...........          2/18/2010  Atlanta
 Group d/b/a First Fidelity     Road,
 Mortgage.                      Baltimore, MD
                                21236.
Weststar Mortgage Group......  2155 Louisiana    Dallas...............          4/28/2010  Denver
                                Boulevard, NE.,
                                Albuquerque, NM
                                87110.
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[[Page 49512]]

    Dated: July 30, 2010.
David H. Stevens,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2010-20068 Filed 8-12-10; 8:45 am]
BILLING CODE 4210-67-P