94-1785. Mortgagee Review Board Administrative Actions  

  • [Federal Register Volume 59, Number 19 (Friday, January 28, 1994)]
    [Unknown Section]
    [Page ]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-1785]
    
    
    [Federal Register: January 28, 1994]
    
    
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    DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
    Office of the Assistant Secretary for Housing--Federal Housing 
    Commissioner
    [Docket No. N-94-3708; FR-3641-N-01]
    
    
    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 Land Sales Registration, 451 Seventh Street, SW., 
    Washington, DC 20410, telephone (202) 708-1824. The Telecommunications 
    Device for the Deaf (TDD) number is (202) 708-4594. (These are not 
    toll-free numbers).
    
    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 October 1, 1993 through December 31, 1993.
    
    1. Certified Mortgage Bankers, Inc., Coral Gables, Florida
    
        Action: Proposed Settlement Agreement that includes indemnification 
    to the Department for claim losses in connection with three improperly 
    originated loans, and payment of a civil money penalty in the amount of 
    $500 for reporting violations under the Home Mortgage Disclosure Act 
    (HMDA).
        Cause: A HUD monitoring review that cited the company for 
    violations of HUD-FHA program requirements that included: failure to 
    comply with HUD-FHA reporting requirements under the Home Mortgage 
    Disclosure Act (HMDA); failure to verify mortgagors' source of funds 
    used for downpayment and/or closing costs; failure to properly verify a 
    mortgagor's employment, income and property occupancy; and failure to 
    maintain an adequate Quality Control Plan.
    
    2. Pioneer Mortgage, Inc., Haddon Heights, New Jersey
    
        Action: Proposed Settlement Agreement that includes indemnification 
    to the Department for claim losses in connection with three improperly 
    originated loans, and corrective action to assure compliance with HUD-
    FHA requirements.
        Cause: A HUD monitoring review that disclosed violations of HUD-FHA 
    program requirements including: failure to implement a Quality Control 
    Plan in compliance with HUD-FHA requirements; failure to verify a 
    mortgagor's source of funds used for downpayment and closing costs; and 
    failure to adequately verify mortgagors' income.
    
    3. American Mortgage Corp., Seattle, Washington
    
        Action: Proposed Settlement Agreement that includes indemnification 
    to the Department for claim losses in connection with five improperly 
    originated loans, and corrective action to assure compliance with HUD-
    FHA requirements.
        Cause: A HUD monitoring review that disclosed violations of HUD-FHA 
    program requirements that included: failure to implement a Quality 
    Control Plan; sharing office space and commingling employees with 
    another firm; failure to verify the source of mortgagor funds used for 
    downpayment and closing costs; permitting a mortgagor and real estate 
    agent to handcarry a verification of employment and verification of 
    deposit; failure to properly verify monthly effective income; and 
    failure to ensure that face-to-face interviews are conducted with 
    mortgagors prior to submission of HUD-FHA loan applications to AMC's 
    underwriter.
    
    4. Gulf States Mortgage Co., Atlanta, Georgia
    
        Action: Proposed Settlement Agreement that provides for 
    indemnification to the Department for claim losses in connection with 
    ten improperly originated loans, and corrective action to assure 
    compliance with HUD-FHA requirements.
        Cause: A HUD monitoring review that cited the company for 
    violations of HUD-FHA program requirements that included: overinsured 
    mortgages; failure to verify mortgagors' source and/or adequacy of 
    funds for downpayment and/or closing costs; failure to conduct adequate 
    face-to-face interviews with mortgagors; permitting mortgagors to 
    handcarry verifications of employment; and failure to properly complete 
    the Form HUD 92900.
    
    5. Mortgage Resource Center, Inc., Greensboro, North Carolina
    
        Action: Proposed Settlement Agreement that includes payment of a 
    civil money penalty in the amount of $1,000, and corrective action to 
    assure compliance with HUD-FHA requirements.
        Cause: A HUD monitoring review that cited the company for 
    violations of HUD-FHA requirements that included: failure to comply 
    with the reporting requirements under the Home Mortgage Disclosure Act 
    (HMDA); failure to implement a Quality Control Plan; charging 
    unallowable fees to mortgagors; and failure to maintain complete loan 
    files.
    
    6. Alcola Mortgage Corporation, Northridge, California
    
        Action: Probation and proposed civil money penalty in the amount of 
    $1,500.
        Cause: A HUD monitoring review that disclosed violations of HUD-FHA 
    requirements that included: failure to comply with the Department's 
    requirements for office facilities; failure to implement an adequate 
    Quality Control Plan; failure to comply with reporting requirements 
    under the Home Mortgage Disclosure Act (HMDA); and submitting a false 
    certification to HUD-FHA concerning the location of the company's 
    office facilities.
    
    7. L.J. Wright Financial Resource Company, Phoenix, Arizona
    
        Action: Letter of Reprimand.
        Cause: A HUD monitoring review that cited the company for failure 
    to comply with HUD-FHA reporting requirements under the Home Mortgage 
    Disclosure Act (HMDA).
    
    8. Mortgagees Cited for Failure To Comply with HUD-FHA Reporting 
    Requirements Under the Home Mortgage Disclosure Act (HMDA) and/or 
    Maintain an Adequate Quality Control Plan.
    
        Action: Letters of Reprimand and proposed civil money penalty in 
    the amount of $500.
        Cause: HUD monitoring reviews that disclosed noncompliance by the 
    following mortgagees with the Department's reporting requirements under 
    HMDA and/or failure to comply with HUD-FHA requirements for maintaining 
    a Quality Control Plan.
        Mortgagees issued a Letter of Reprimand with a proposed civil money 
    penalty for failure to meet HMDA reporting requirements and to maintain 
    an adequate Quality Control Plan.
        All Service Mortgage Corporation, Largo, FL; Cannon Mortgage 
    Company, Tustin, CA; Karma Mortgage, Orange, CA; Colorado Mortgage 
    Professionals, Englewood, CO; Cypress Mortgage, Inc., Austin, TX; 
    Franklin-Harris Associates, Longmont, CO; and Lincoln Home Mortgage, 
    Inc., Roselle, IL.
        Mortgagees issued a Letter of Reprimand with a proposed civil money 
    penalty for failure to report HMDA data only.
        Affordable Mortgage Corporation, Wappinger Falls, NY; and Mission 
    Hills Mortgage Corporation, Santa Ana, CA.
    
        Dated: January 19, 1994.
    Nicolas P. Retsinas,
    Assistant Secretary for Housing--Federal Housing Commissioner.
    [FR Doc. 94-1785 Filed 1-27-94; 8:45 am]
    BILLING CODE 4210-27-P
    
    
    

Document Information

Published:
01/28/1994
Department:
Housing and Urban Development Department
Entry Type:
Uncategorized Document
Action:
Notice.
Document Number:
94-1785
Pages:
0-0 (None pages)
Docket Numbers:
Federal Register: January 28, 1994, Docket No. N-94-3708, FR-3641-N-01