Mortgagee Review Board: Administrative Actions; Correction, 44851-44852 [2014-18268]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 79, Number 148 (Friday, August 1, 2014)]
[Notices]
[Pages 44851-44852]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-18268]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5802-C-02]


Mortgagee Review Board: Administrative Actions; Correction

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

ACTION: Notice, correction.

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SUMMARY: On July 16, 2014, HUD published a notice to advise the public

[[Page 44852]]

of the administrative actions taken by HUD's Mortgagee Review Board 
(Board) against FHA-approved mortgagees during the period from October 
1, 2012, to September 19, 2013, and the reasons for these actions. The 
notice is published as required by Section 202(c)(5) of the National 
Housing Act. As part of the notice, HUD included a list of lenders that 
had failed to meet the requirements for annual recertification and 
whose FHA approvals had been withdrawn. HUD has determined, however, 
that it erroneously listed two lenders as withdrawn when, in fact, each 
of the two lenders had appealed the Board's notice of withdrawal prior 
to the date upon which a withdrawal would take effect and resolved the 
matter. One of the lenders demonstrated that it had been in compliance 
prior to HUD's issuance of the Notice of Violation. The other lender 
resolved the annual recertification issues and paid a civil money 
penalty. HUD is publishing today's notice, therefore, to correct its 
July 16, 2014, notice.

FOR FURTHER INFORMATION CONTACT: Nancy A. Murray, Secretary to the 
Mortgagee Review Board, 451 Seventh Street SW., Room B-133/3150, 
Washington, DC 20410-8000; telephone (202) 708-2224 (this is not a 
toll-free number). Persons with hearing or speech impairments may 
access this number through TTY by calling the toll-free Federal 
Information Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    Section 202(c)(5) of the National Housing Act (12 U.S.C. 
1708(c)(5)) requires that HUD ``publish in the Federal Register a 
description of and the cause for administrative action against a (HUD-
approved) mortgagee.'' Pursuant to this requirement, HUD published on 
July 16, 2014, at 78 FR 41586, a notice advising the public of actions 
taken by the Board from October 1, 2012, to September 19, 2013. As part 
of its July 16, 2014, notice, HUD included a list, beginning at page 
41589, of lenders that had failed to meet the requirements for annual 
recertification and whose FHA approvals had been withdrawn. HUD has 
determined, however, that it erroneously included two lenders whose FHA 
approvals have not been withdrawn. One lender, Acceptance Capital 
Mortgage Corporation, of Spokane, Washington, appealed the Board's 
notice of administrative action/proposed withdrawal and settled the 
matter with HUD by resolving the annual recertification issues and 
paying a civil money penalty. The other lender, Funding, Incorporated, 
of Houston, Texas, demonstrated that it had satisfied the annual 
recertification requirements prior to issuance of the Notice of 
Violation. As a result, these lenders are in compliance with HUD's 
annual recertification requirements and have not had their FHA 
approvals withdrawn.

II. Correction

    Based upon the information above, HUD's July 16, 2014, notice is 
corrected by removing Funding Incorporated (at 78 FR 41590) from the 
list entirely and stating that Funding Incorporated did not violate 
HUD's annual recertification requirements and has not had its FHA 
approval withdrawn, and by stating the following with respect to 
Acceptance Capital Mortgage Corporation:

1. Acceptance Capital Mortgage Corp., Spokane, WA [Docket No. 13-1468-
MRT]

    Action: The Board entered into a settlement agreement with 
Acceptance Capital Mortgage Corp., Spokane, WA, [Docket No. 13-1468-
MRT] that required the lender to pay a $7,500 civil money penalty, 
without admitting fault or liability.
    Cause: The Board took this action based upon allegations that 
Acceptance Capital Mortgage Corp. had failed to comply with the 
Department's annual recertification requirements.

    Dated: July 28, 2014.
 Biniam Geber,
General Deputy Assistant Secretary for Housing--Federal Housing 
Commissioner.
[FR Doc. 2014-18268 Filed 7-31-14; 8:45 am]
BILLING CODE 4210-67-P